Refusal To Sell

In commercial trade, it is not unusual that a distributor or producer of goods refuses to deliver or sell its services or goods to a certain dealer.

Such a refusal can find its origin in a number of reasons. For instance, a particular distribution policy or trade policy, that a company tries to pursue, can come to mind. In this regard, it is important to know which rules and principles have to be respected.

Different scenarios can occur. If a company refuses to deliver certain products or services while there is a binding contract, the refusal will be regarded as a breach of contract.

The same will apply if there exists a framework contract, based on which the parties conclude consecutive sale agreements. A textbook example would be a distribution agreement. In these cases the refusal to sell would generally be sanctioned on contractual grounds.