Legal Question in International Law in China
What is the name of the contract (or agreement) that allows a distributor to restrict a supplier from supplying directly to a customer in return for knowledge of customer existence? The agreement would allow the distributor to gain compensation for bringing an otherwise unknown customer and the supplier the additional business.
Does such a contract (agreement) have to be in the form of a geographic limitation? For instance, the supplier could grant an exclusive territorial right to sell its products in the customers location. Or, is it permissible for the contract (agreement) to grant exclusive right, regardless of location, to a specific customer?
1 Answer from Attorneys
Hi, the agreement you mentioned could be a distributorship agreement which includes your above concerns in the first paragraph.
It's ok to grant exclusive right in the agreement as you like.
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