Distributorship Agreement

"A contract is the creature of its proper law, and it is a reference by the parties to a system of law which is to give life to the contract!" Roland Brown This paper analyses distribution agreements as one of the most frequent methods of distribution of products and services. It addresses its innominate contract type and determines its significance. In business practice, like cases concerning the exclusive distribution of luxurious products, the distribution technique is evolving. In order to reach that conclusion, thorough analysis has been conducted by providing practical examples relied on Turkish and international jurisprudence. In this regard, several issues emerge by analysing the lack of regulations and proactive provisions. These issues present new challenges and encourages strategic thinking in a legal environment with different interpretation. The purpose of this paper is to provide solutions and contribute to the discussion that if not properly formulated distributorship agreements create entanglement due to the legal ambiguity. This paper is principally based on a civil law analysis, providing legal assessment of the contractual relationship of the distributor and provider. The study is supported by an analysis of legal and economic papers concerning distribution agreements. The research shows that the outcome of the cases depends largely on creating the right agreement. However, certain points appear to be complicated, therefore the determination of distributorship agreement's concept, its nature and features, clarity over scope and goals are the key of contractual conditions improving future business.