Exclusive distribution contracts

Exclusive distribution contracts are sui-generis contracts which are not regulated under Turkish law. This contract is defined as follows in the Turkish legal doctrine and the judicial decisions: The exclusive distribution contract is a continious contract that regulates the legal relationship between the supplier and the exclusive distributor wherethe supplier undertakes the obligation of sending all or some of its produced goods to the exclusive distributor to be sold in a specific region in a monopolized manner and the exclusive distributor undertakes the obligation of selling the goods under it's name and increasing the sales of it. Because they are not regulated under the law, to resolve disputes arised during the application and termination of the contract, the contract features, rights and obligations of parties, and the terms applied to exclusive distribution contracts should be identified. Being a permanent obligatory relationship and applied long term, exculusive distribution contracts impose loyalty to parties based on deep trust and strong collaboration. Therefore, parties have numerous obligations to eachother during the termination of the agreement. One of these obligations, goodwill compensation, is the only regulated issue under our laws related to exculusive distribution contracts.