Contractual restrictions based on German case law

As there are no legal regulations by law existing in Germany, the law governing authorized dealers is based on case law based on the principles of the regulations for the commercial agent.

Authorized Reseller Agreement to be concluded

Usually the parties conclude a written Authorized Reseller Agreement as a framework contract / umbrella with an authorization and grant of a reseller license as well as detailed reseller obligations pointing especially out what the limitations of the reseller are.

Contractual rights and obligations of an Authorized Dealer in Germany

The appointed distributor is usually authorized to sell certain goods but is not entitled to use the trademark of the seller.

An Authorized Dealer will work on his own account and invoices his clients for the goods delivered. He will bear the risk of storing goods, he well be responsible for his cost landscape and has chances but also risks.

Depending on the content of the agreement, the distributor might be limited to selling only the company's goods or may as well have the opportunity to market additional different products or services from other firms.

Often a buy-back obligation for dealers under leasing agreements negotiated by them with lessors is to be found in many contracts in Germany.