Legal Nature of Distribution Contracts
Distribution contracts are qualified as sui-generis
contracts under Turkish law. A distribution contract may contain
the features of a sales and purchase contract, but it differs from
the same as it consists of multiple sale and purchase transactions;
and it envisages strong connection and loyalty features between the
parties, such as exclusivity (unless otherwise agreed) and the
permanent character of the performance.
Distribution contracts have some common features with agency
contracts in terms of loyalty and the permanent character of the
performance. However, a distribution contract differs from an
agency contract due to the ability of the distributor to act
independently in its own name and on its own account. In addition,
a distributor generates profit from the difference between the
purchase price and the sale price, whereas an agent is paid a
commission for the sales conducted by the principal.
