In the absence of a breach on the part of the distributor, the common point of law for termination of contracts is the tacit delay of reasonable termination. The arguments in favour of this implied term are strong if it can be argued that the seller and trader cannot have the intention that the contract was eternal (and there is no other way to terminate the contract). In the event of termination or expiry of the distribution contract, the provisions established at the time of the constitution are at the heart of the concerns. Is the termination procedure clear, does it avoid any legal implications in cartel and abuse of dominance disputes? These issues can be dealt with in advance, provided, of course, that they are discussed at the beginning of the business relationship. Too often, the quality of a contract is defined by the problems posed by poor drafting. Even the best-placed plans can contractually turn into a disputeland in the event of unforeseen problems or relationship breakdowns. The formation of distribution contracts requires not only foresight and experience in potential problems, but also a healthy relationship between the parent company or supplier and the distributor. Legal guidelines can help parties avoid these pitfalls. The development of a framework to deal with common contractual issues specific to distribution contracts is both possible and necessary. If the behaviour of the parties refers to a distribution report (for example. B if exclusivity had been agreed orally), this would mean that a distribution agreement could be considered and that termination rules would be governed by the common law for unspoken contracts. A supplier wants to retain control of its distribution network with the ability to redefine areas, modify product offerings, prices and distribution targets. While the possibility of amending these aspects of a trade agreement may be incorporated into a distribution agreement, a distributor will generally oppose the amendments to the extent that it attempts to redefine the trade agreement between the parties at the beginning of the relationship.
A distributor, will want to keep the flexibility to take the best products to its customers, at a healthy profit margin and a common area of concern when terminating is the status of the enlarged customer or customer lists and how this information is handled if no specific clause regulates the problem.