Agency and distribution compared


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Commercial expert
Practice notes

Agency and distribution compared


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Commercial expert

Practice notes
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This Practice Note compares agency with distribution and contains a table setting out the key legal differences between agents and distributors. This Practice Note sets out the difference between agents and distributors, including the relationship with their respective principal or manufacturer and compares the risk profile of each appointment. Consideration is also given to the circumstances under which an agency is preferred, and the conditions that favour distributorships.

Initial considerations

Agency and distribution are examples of channels to market: means by which a manufacturer, producer or an intermediary, such as a wholesaler, gets its products to end-user customers. Other channels to market include direct sales (where sales staff are employed directly by the manufacturer or where the manufacturer sells at a distance (eg via the internet)), entering into a joint venture with a local business, and franchising (which has many features in common with distribution). For further details on franchising, see: Franchising—overview.

This Practice Note compares sales agents, who procure (and sometimes conclude) contracts with customers for their principal, with distributors. Sales agents also commonly handle marketing. Other

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Agency definition
What does Agency mean?

Agency is a legal relationship between an agent who is a person having the authority or capacity to create legal relations between a principal and third parties.

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