In Avoiding the Top 10 Mistakes with Distributor Agreements, Glen Balzer, management and forensic consultant and expert witness in domestic and international marketing and sales, shares a checklist of ten common mistakes to avoid when drafting your next distributor agreement. Mistake #6 is entitled Termination by Only One Party – Not Both.
Distributor agreements that allow for termination by only one partner are biased. Experience suggests that such lopsided agreements more frequently end in a legal dispute. By allowing both parties to terminate the agreement, some legal disputes can be avoided. The best distributor agreements allow either party to terminate the agreement.
Glen Balzer, President of New Era Consulting, can be reached at glen@neweraconsulting.com.