Legal Question in Business Law in United Kingdom

Dealer Agreement

I have an distributor agreement with a company in Belgium to distribute their products in Sri Lanka & South India.

Now the company is bought over by another company and want to terminate our agreement. The director who issued the agreement in may 2006 has left the company but not terminated the agreement.

According to the agreement one of the point is

2. The agreement will be valid for an initial period of one (1) year.

Will be automatically renewed if no resignation 3 months before the end of that year, by one of the parties.

the question is

Is it still valid ?

Can I file case against this in the UK?


Asked on 2/02/08, 7:50 am

1 Answer from Attorneys

Richard Howard Richard Howard & CO

Re: Dealer Agreement

There are two separate parts to your question, first, whether English Court's have jurisdiction and secondly whether the agreement remains in effect. There is also a third question which arises out of the first question.

1.The issue as to whether English jurisdiction applies depends on the wording of the agreement and what if any connection the parties have or had at the time the contract was made to England. This can only be determined by looking at the agreement.

2.If English Courts have jurisdiction there is a separate question whether English or some foreign law applies. Again the first issue to determine would be by reference to the contract itself.

3.Under normal circumstances in jurisdictions where English law applies or is the source of the local law as in India and Sri Lanka, the change in ownership of a company will not make any difference to the obligations of the comapny owes to people who have a contract with the company. A civil law jurisdiction like Belgium may treat things differently. However, under EC law there are certain circumstances in which distributors are treated as agents and an agreement terminated with an agent may fall under EC regulation of Agent's compensation.

You would need to take advice about all these matters from somebody who had read the agreement and the background papers.

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Answered on 2/04/08, 11:12 am


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