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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We have been a main distributor spanish company

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We have been a main distributor for a spanish company for over 6 years and have seen sales grow significantly through heavy investment in training. We don't have a contract. They have just appointed another distributor alongside us who doesnt offer training & support and is undercutting us. Do we have any rights?
Hello my name is ***** ***** I will help you.For now please let me know why you dont have any form of contract please?Was it ever agreed that you would be the sole distributor?
Customer: replied 1 year ago.
No - there was another distributor before we started - and we worked alongside them. Their sales were falling before we started and then when we came along - their sales started increasing too - but they did not operate with predatory pricing. The new distributor who has been appointed is just undercutting both of us to cream off our business. The manufacturer says they don't have formal contracts with any distributors.
It's bad news I am afraid. Unless there is anything in writing saying they can't appoint someone else then you can not stop them.This is because there is no contract. If you had a contract you could have tied it up so they couldn't appoint.But as you don't then sadly they can do what they want. There is nothing in law stopping them, because there is no signed contract.I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.Can I clarify anything for you about this today please?Alex
Customer: replied 1 year ago.
Someone said that if you could show you had built significant sales that that gives you an implied role in a contractural sense. Is that not the case?
Sadly not - there was no agreement and there was another distributor before you started.I am very sorry. Alex
Customer: replied 1 year ago.
Two last questions - can we have a distributor contract if we are the main distributor but not the exclusive distributor and if the company is spanish - should it be according to Spanish, UK or European law?
you can still have a contract. Ideally you would want it for the law of England and Wales.Does that clarify?Alex
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Customer: replied 1 year ago.
Thank you