Legal Articles & Insights

European Union: A demand letter is not better because it sounds harsher. Its value is clarity on facts, contract, amount, deadline and credible next steps. Aggressive wording without quantified claims and evidence reduces leverage.

European Union: A brand may demand targets while being unable to supply, or may allocate popular SKUs to DTC and other regions. A target miss can therefore reflect both distributor performance and brand supply failure.

European Union: MOQs and sales targets often serve three purposes: forecasting supply, measuring performance and preserving exclusivity. The contract may fail to say whether a miss causes damages, loss of exclusivity, cure or non-renewal.

European Union: Many disputes erupt at exit rather than during the relationship. A termination email is easy; resolving inventory, customers, trademarks, domains, warranties, deposits, receivables and in-transit orders is not.

European Union: A distributor needs trademarks to sell, but permission to sell does not automatically authorize domains, “official” social accounts, co-branding, local registrations or placing the logo on unrelated products. Ambiguity becomes acute at term

European Union: Consumers see one brand, but behind it may be a brand owner, manufacturer, importer, distributor and service company. Parts, labor, refunds and legacy orders must be allocated clearly or after-sales costs can consume channel margins.