Distribution Agreements in Norway
Distribution Agreements in NorwayUpdated on Tuesday 31st July 2018
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What is a distribution agreement in Norway?
A distribution agreement in Norway is a legal document through which two companies establish the terms for the distribution of goods. It is generally set up between a supplier of goods and a distributor and it sets out the rights and obligations of each party. Further on, this type of contract can be concluded as exclusive distribution agreements or non-exclusive distribution agreements and our team of lawyers in Norway can offer legal assistance on the particularities of each type of contract.
Norwegian legislation for distribution agreements
Businessmen who want to conclude a business partnership with a Norwegian company through a distribution agreement should know that this type of contract is not regulated by a specific rule of law. However, the provisions of certain legal acts can be imposed and in this sense, regulations of the Contracts Act and the Competition Act are applicable.
Our team of Norwegian lawyers can offer in-depth advice on the regulations that are available in this situation, but it is important to know that certain rules prescribed by the European Commission (EC) can apply. However, businessmen are generally free to set up the terms of the document, in the limits of the national legislation of Norway.
Minimum requirements for Norwegian distribution agreements
Although companies can generally impose various terms, they do have to comply with certain rules of law, such as the Norwegian Sale of Goods Act and the Norwegian Consumer Purchase Act. Most of the regulations concerning the drawing of a distribution agreement are given by the Norwegian Sales of Goods Act, which prescribes the following:
- • goods sold through a distribution agreement have to comply with their description;
- • the respective goods and products have to respect a set of quality standards;
- • if the goods are sold to consumers, the contract has to include regulations prescribed by the Norwegian Consumer Purchase Act;
- • the taxation of the goods traded through a distribution agreement is concluded following the regulations of the Norwegian Income Tax Act.
Foreign investors who are planning to establish a company here that deals with distribution agreements will generally be taxed in accordance with the regulations available for permanent establishments and for more details regarding this subject, we invite you to contact our law firm in Norway.