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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My company distributes chemicals in Europe for a US producer

Resolved Question:

My company distributes chemicals in Europe for a US producer under an Exclusive Distribution Contract. They wish to include in the renewal of the contract an additional clause stating that if they refuse to supply a product under the agreement because they cannot meet the price we need we are not allowed to purchase a similar product from an alternative supplier. If this legal?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts : Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : What jurisdiction is the contract governed by please?
Customer: Hello Alex,
Customer: this is under UK law
Alex Watts :

Good.

Alex Watts :

Whilst the clause could be enforceable in theory you could rely on the provisions of the Competition Act and the Unfair Contract Terms Act.

Alex Watts :

This is because there should be free and open competition.

Alex Watts :

To stop you from sourcing a product elsewhere is against competition

Alex Watts :

If they try and enforce this you could report it to the Office of Fair Trading and/or Trading Standards

Alex Watts :

So whilst it is not strictly illegal it does prevent competition and you could challenge it on that basis

Alex Watts :

Can I clarify anything for you about this today please?

Ash and 3 other Law Specialists are ready to help you

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