Document background
The Sole Distributor Agreement is essential for businesses seeking to establish exclusive distribution channels in Belgium or under Belgian law. This document is particularly significant due to Belgium's specific legislative framework protecting distributors, including the Law of 27 July 1961 on unilateral termination of exclusive distribution agreements. The agreement covers crucial aspects such as territory definition, exclusivity rights, performance requirements, and termination provisions, while ensuring compliance with both Belgian and EU competition laws. It's typically used when a supplier wants to grant exclusive rights to a distributor in a specific territory, requiring careful consideration of mandatory notice periods and potential termination compensation under Belgian law. The agreement must balance commercial flexibility with the strict requirements of Belgian distribution law, making it a critical document for establishing and managing exclusive distribution relationships.
