This Practice Note considers the legal and practical issues arising out of appointing a party as a sub-distributor. Sub-distributors can help manufacturers and distributors improve market coverage for the supply of a product or service in a territory or in respect of a particular market/customer sector.
Under English law, there is nothing to prevent a distributor appointing others to perform all or part of its distribution obligations on its behalf. In doing so, the sub-distributor represents the manufacturer’s brand and products to the public. As a result, distribution agreements might provide that sub-distributors may only be appointed with the manufacturer's approval.
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