The UK economy grew by 1.9% in 2013 according to the Office for National Statistics. Chancellor George Osborne recently commented that “the economic recovery is broadly based with manufacturing growing more than other sectors”.
Looking specifically at the manufacturing industry, there are many exciting way to grow and expand your business. Some of these ideas may include:-
Distribution Agreements
This is a fairly low risk means of expanding a business into new markets or territories. Generally, the manufacturer sells products to the distributor, who then sells the products on to customers, adding a margin to cover costs and profit. In purchasing and reselling the products, the distributor contracts both with the supplier and with the customer, and title to the products in question will pass to and from him.
Agency Agreements
An agent would be an intermediary involved in making a contract between the manufacturer and the manufacturer’s customer. Therefore, the contract for sale of the products is made between the manufacturer and the customer. The agent generally has no contractual liability to the customer.
It is essential to use clear terms when defining whether the relationship between manufacturer and intermediary is one of agency or distributorship. Lack of clarity may lead to unnecessary litigation. Tolhurst Fisher can assist you in drawing up agreements that would be appropriate for your planned business expansion and would also be happy to review any existing agreements.
Please contact our commercial department by emailing commercial@tolhurstfisher.com for further information.
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