Motivating the Distributor, Sales Rep, or Licensee; Performance Levels; and Other Standards and Termination for Nonperformance

AuthorDavid A. Steiger
Pages437-441
Appendix C
Motivating the Distributor, Sales
Rep, or Licensee; Performance
Levels; and Other Standards and
Termination for Nonperformance
437
I. Local law and law specied in the contract.
A. Licensor should investigate local law for similar concerns.
II. Term—critical.
A. Denite or indenite duration.
B. Denes expectations and intentions. Less investment.
C. Critical effect on termination damages.
D. Avoid going over two years.
E. Trial period.
III. Renewals are pitfalls.
A.
Avoid automatic renewals if no action taken—“evergreen”
clauses. Better if take action to effect renewal.
B.
Repeated renewals can equal indenite terms—need new
agreements.
C.
Once expired, avoid continuing. Equals an implied renewal.
Monitor the expiration date.
IV. Termination.
A. Type of intermediary often key.
B. Reason for termination—cause or without cause.
Steiger_TransBorders_20140625_09-05_FinalPass.indd 437 6/26/14 9:21 AM

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT