From 1997 and until the Code of Commerce came into effect last
May 29, 2019, the distribution contract did not have a specific
regulation. It was governed by the general rules applicable to
trade acts, contracts and regulations on jurisdiction.
On December 31, 1976, the Law for the Protection of Agents or
Distributors of Foreign Companies (Distributors Law) was enacted,
which regulated the commercial relationship between an entity not
based in Ecuador and a person – be it natural or legal-
designated as representative, agent or distributor. This Law mainly
provided a special protection regime for the distributor / agent.
Thus, among the most relevant provisions included, the grantor was
not authorized to unilaterally terminate the contract even by
expiration of the term established in the contract itself, save for
specific causes established in the Distributors Law, which in turn
had to be qualified by the competent judge, and established a
method of calculating large
