Description
An agreement between a supplier and a distributor which defines their rights and obligations relating to the distribution of the supplier’s products. Reference should be made to the Maintenance and Promotion of Competition Act 96 of
1979 which enables the Minister of Trade and Industry to prevent restrictions of competition, e.g. by fixing prices, through publication of a notice in the Government Gazette. The Competition Board makes an initial report to the Minister who responds thereto. A franchising agreement also amounts to a distribution of products but it more properly refers to the licensing of a business system by a franchiser to a franchisee. It often involves the licensing of trademarks, copyright and patents, etc, and you are advised to consult an attorney since the drafting involved would differ in each instance and is beyond the scope of this publication.