Lesson: Even if you`re against a franchise status that says you can`t terminate, but for good reason, you may want a deal with a defined term that you constantly renovate to make sure the laws change one day – you have a defined term and you don`t land in the wrong place forever. Slapstick now knows that a distribution contract must clearly state the responsibilities and obligations of both parties during the term of the contract, in the event of termination and after the formal termination of the contract. The distribution agreement defines the responsibilities of both parties during and after the duration of the agreement. The liquor distributor disputed the fact that many agreements have left out the duration of the agreement, which subordinates it to acts or events, instead of a fixed period of months/days/years. For example, you may have a contract that says it is in effect until someone does something, or even something happens. It is interesting to note that the existence of a beer franchise status, which stipulates that beer distribution contracts may only be terminated by law after certain events have happened and cannot be terminated or cannot be breached, must be extended otherwise, as a counterpoint in its argument that Parliament`s silence on the spirits affair means that state law does not exclude a time clause or events. After about 18 months, it was clear that the relationship had deteriorated and that a new distributor had to be chosen. As any entrepreneur knows, the real test of any agreement is what happens when the parties split up. The agreement did not specify which products were returned for the loans and the timetable for these returns was set.
The already tense situation has been compounded by differences in expectations on issues related to the transition period on both sides. Distributors have argued for exclusive territory, as without them, the distributor is not encouraged to provide adequate resources for distribution development for the producer. Distributor franchises can be exclusive and there is no other distributor that takes franchises in the territory; or not exclusively, where the new distributor could be one of several distributors that are franchised in the territory.