ItalyLitigation, Mediation & Arbitration
The contract of commercial agency, which sees an independent undertaking bound to promote the conclusion of contracts in the interests of its principal for a remuneration, has always represented one of the preferred instruments for the distribution and sale of industrial products.
The rigidity of costs and the complexity of management of a direct sale network which is sufficiently extensive, render in fact in many cases the latter solution anti-economic or even impracticable, whereas the possibility of partially transferring the financial risks through the involvement of third parties in the distribution process is substantially attractive.
On the other hand the use of independent distributors or even, to a lesser extent, of franchisees, often does not allow the principal a sufficient control over the distribution and marketing of the product concerned, given the fact that the purchaser/distributor would act as a distinct contractual party between the manufacturer and the
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