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Manish   22 September 2024

Distributor and company dispute

Respected All

I'm a garment distributor for a garment manufacturing company I'm doing well but now company wants to give distributorship to a big brand distributor now my problem is that I'm having stock of that company if new distributor will taking orders from market my stock will dead no one will buy from me because I will no more distributor of the company.second is my payment recovery from the market because they know that we can take matrial from new distributor ther will not give my payment.

In that case I'm in huge loss .

Kindly suggest what to do.



Learning

 2 Replies

T. Kalaiselvan, Advocate (Advocate)     23 September 2024

If the agreement is breached by the company you can sue it seeking damages for the loss you suffered due to this.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     23 September 2024

I totally understand your concern. You're worried about your stock and payment recovery with the company wanting to give distributorship to a big brand distributor ¹. Let's break down your concerns: *Stock:* You're right; if the new distributor takes over the market, your stock might not sell, and you'll be left with dead stock. This is a common issue in distribution agreements, and you should consider negotiating a buyback or return policy for your existing stock ². *Payment Recovery:* You're right again! If the market knows that they can get the material from the new distributor, they might not pay you, and you'll be left with unpaid debts. You should ensure that you have a clear payment plan in place and consider securing your debts before the new distributor takes over ². *Distribution Agreement:* Review your distribution agreement to understand your rights and obligations. Check if there are any clauses that protect you in this situation, such as exclusivity, termination, or compensation for stock and debts ². *Negotiation:* Consider negotiating with the company to find a mutually beneficial solution. You could propose a phased transition, where you continue to sell your existing stock while the new distributor takes over new orders ¹. Alternatively, you could request compensation for your stock and debts or explore other options that work for both parties ². *Legal Advice:* If negotiations don't work, consider seeking legal advice to understand your options and protect your interests. ibution agreements can help you navigate this situation and ensure you get a fair deal ¹ ² ³. Remember


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