Please advise, is this 'breach of contract'?

[james_sgp]

We sell products in a specific region, and we are having issues with another distributor marketing/selling in our region. Our contract states that "Products may only be sold within the authorized territory unless written authorization is provided from HQ" Does this constitute a breach of contract, between the other distributor and HQ?

 

[adjusterjack]

Does this constitute a breach of contract, between the other distributor and HQ?

Dunno. What does the other distributor's contract say? Might not have the same limitation on the other distributor.

 

[james_sgp]

Dunno. What does the other distributor's contract say? Might not have the same limitation on the other distributor.

I have a copy of his contract, word are a little differenet to ours. It says 'Products may only be sold in authorised territory, unless written permission is given by HQ'.

 

[PayrollHRGuy]

I have a copy of his contract, word are a little differenet to ours. It says 'Products may only be sold in authorised territory, unless written permission is given by HQ'.

Do you know if HQ gave them written permission?

 

[james_sgp]

Do you know if HQ gave them written permission?

No they havent, we have spoken to HQ and they did say they had talked to him...but he still continues to do it.

 

[PayrollHRGuy]

The other seller's contract is with HQ not you so you have no claim against the other seller. You may well have a claim against HQ.

 

[Zigner]

Does your contract guarantee that no other distributor will sell in your territory?

 

[james_sgp]

Does your contract guarantee that no other distributor will sell in your territory?

Yes. We know we have no claim against the other distributor. But do we have a strong claim against HQ, as they are allowing him to do...?

 

[james_sgp]

Yes. We know we have no claim against the other distributor. But do we have a strong claim against HQ, as they are allowing him to do...?

The franchise is one distributor per territory.

 

[Zigner]

Again, does the contract guarantee that no other distributor will sell in your territory?

You really need to take your contract to a local attorney for review.

 

[james_sgp]

Again, does the contract guarantee that no other distributor will sell in your territory?

You really need to take your contract to a local attorney for review.

Ok thanks, we'll look into doing that

 

[quincy]

What is the name of your state? What region do you both share?

If you are having a problem with your franchise because of competition from the other franchise, you could ask HQ to authorize your expansion into another territory.