Checklist for Preparation of International Distributor and Sales Representative Agreements

• Author: David A. Steiger
• Pages: 423-436

Appendix B

Checklist for Preparation

of International Distributor and

Sales Representative Agreements

423

1. Introduction—Preliminary Concerns

a. In a few countries, it may be required to use a form of contract

required by local law (e.g., Saudi Arabia).

b.

Laws of certain countries may prohibit the parties from waiv-

ing local law governing legal relations between foreign company

and local residents or citizens; determine requirements of any

such laws (e.g., restrictions on choice of law or forum selec-

tion clauses, required termination payments, required notice

periods, etc.).

c.

Certain countries do not permit use of independent distributors

(e.g., Algeria); in those cases any local third-party “agent” must

be a sales representative.

d.

Determine whether registration with, or the approval of, any

local government agency is required for distributor or commis-

sioned rep agreement.

e.

Avoid violations of any antitrust restrictions imposed by local

law.

f.

Check relevant tax treaties and tax laws to be sure that U.S.

exporter will not create a “permanent establishment” in the

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