I need to create a legal contract between my company and a factory, to obtain the distribution rights of their products in certain territories.
Main Elements to be highlighted in the contract:
1- The contract is between 2 Parties. 1st party “Factory X”, 2nd party “Company Y Marketing and Distribution”
2- “Factory X” is the owner of the products
3- “Company Y Marketing and Distribution” is the distributer
4- Assigned Location/territory: Both Companies are located in Hungary. Franchise exclusive rights territory is: United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Oman, Iraq, Jordan, Egypt, Morocco, and Israel.
5- Duration: 1 Year. Renewed automatically unless stated to be terminated by a three months notice by one of the parties.
6- Profit distribution: 1st party 80%, 2nd party 20%
7- Operations: 1st party: produces, pack, and prepare to ship products. 2nd party: signing distribution contracts with clients, marketing, distribution, shipping.
Sure, we should have other legal information added to the contract, those will be discussed later based on your previous experience.