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Distribution agreement is cancelled or terminated?

At first glance, there seems to be no difference – they are both aimed at terminating a distribution agreement, but legally the concepts of ‘termination’ and ‘dissolution’ have completely different legal effects.

Dissolution of distribution agreement

Dissolution is possible after a shortcoming that justifies parting from each other, since a contracting party does not fulfil its agreements. If your business relation dissolves your distribution agreement, damages can also be claimed from you.

Termination of distribution agreement

With termination, the parties respect their agreements, but one party does not wish to continue the cooperation. However, termination means that the terminating party is bound by grounds for termination and deadlines, and you may be entitled to additional compensation.

In both cases, it is important that you hire a lawyer. Contact us immediately if you have received a notice of termination or a letter of dissolution – and also in case you wish to terminate a distribution agreement yourself – we will help you so that you fully understand what the options and risks are and what it means for you.

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