Document background
The Limited Risk Distribution Agreement is a specialized commercial contract used when companies wish to establish a distribution relationship while maintaining significant control over operations and limiting the distributor's business risks. This model is particularly relevant in the Belgian market, where strong distributor protection laws must be carefully considered. The agreement typically includes detailed provisions on pricing mechanisms, inventory management, and risk allocation, while ensuring compliance with Belgian distribution laws and EU regulations. It's commonly used by multinational companies seeking to maintain consistent operations across multiple territories while adapting to local Belgian legal requirements. The document addresses key aspects such as tax and VAT treatment, mandatory legal protections, termination provisions, and compensation structures specific to the Belgian market.
