Distribution Agreement German

On 20 November 2017, the European Parliament, the Council and the Commission reached a political agreement on stopping certain geographical blocking practices and banned “three specific situations in which no justification or objective criteria for difference in treatment between clients of the various EU Member States are possible”, namely that agency agreements can be terminated without reason if a contractual agreement is reached. However, mandatory notice periods must be met, depending on the length of the contract: from one month in the first year to six months after five years (Article 89 (1) HGB). Notice periods cannot be shortened and, in the event of an extension, the supplier`s notice period should not be shorter than that of the agent (Article 89, paragraph 2, HGB). A case is only necessary if the contract is terminated without notice (Article 89a HGB). It is granted where it cannot reasonably be expected to continue the relationship until the end of the agreement (given all the circumstances of this case and the weighting of the interests of both parties). The distribution contract can determine which party is responsible for a recall and its costs. Individual agreements are not subject to specific limits. However, standard transaction terms are subject to strict judicial review: they may be unenforceable if they are incompatible with fundamental legal principles, restrict essential contractual rights and obligations, or are surprising or ambiguous (s. 310(1), 307, 305c BGB). Therefore, these conditions should take into account who would normally be responsible for the recall and costs, depending on the product (loan or not, etc.). A supplier may restrict the guarantee rights granted by law (see question 26) to its distributors. Under German law, there is a general obligation to correctly answer questions and provide certain important information without a particular wish before the conclusion of the contract (doctrine of culpa in contrahendo).

However, this teaching, which follows German jurisprudence, plays a somewhat limited role in the field of agency agreements. Notice times should not be shortened. Notice periods may be extended contractually, provided that the notice period for the sales agent is at least equal to the length of the client`s notice period. At the end of the distribution chain, consumer protection laws are enforced, that is, between the seller and the consumer who buys. Legal law provides a 2-year guarantee that the products are safe. In the event of a default, the buyer has the right to demand after-the-fact benefits (corrective or deliveries of a product without defect), a price reduction or termination (all without fault) and damages if the seller acted wrongly (s. 437, 280 and following BGB). Although a fault is generally accepted by law, the seller can unload, especially if the seller did not fabricate the property (but its subcontractor). These rights cannot be granted to consumers (s.

474, 475 BGB). Any seller of the distribution chain has the right to contact his own supplier if the product was already defective at the time of the delivery in question (s. 478, 479 BGB). In order to respect these rights, the buyer (unless the consumer has to check as soon as the delivery if the products are defective) and the seller must inform the seller (p.