A distribution agreement with a Tunisian or Algerian partner often turns on a handful of clauses. These are the ones we examine first.
Exclusivity and territory
Define the territory, the sales channels and the products precisely. Exclusivity should come with a counterpart: targets, a non-compete undertaking or minimum purchases.
Targets and minimum volumes
Set measurable targets and state what happens if they are missed — loss of exclusivity, a price adjustment or a right to terminate.
Term, renewal and termination
Specify the notice period, the grounds for early termination, and what happens to stock, customers and the trademark once the relationship ends.
Price, payment and currency
Fix the invoicing currency, payment terms and payment security. Exchange-control rules in both countries must be built into the payment mechanism from the start.
Governing law and dispute resolution
Choose a law and a forum consistent with where the contract will actually be performed. Arbitration makes international enforcement easier: Tunisia and Algeria are both parties to the 1958 New York Convention.
These clauses are not independent of one another. They should be negotiated together, in light of the balance of power and of the law that will actually govern performance.
This content is general information and does not constitute legal advice.