Commercial and corporate

Dealership (distributorship) agreement

A framework commercial relationship under which a supplier continuously provides products to a dealer who resells them in their own name and account.

All terms

A dealership agreement is a framework contract under which a manufacturer or supplier continuously provides products to a dealer, who undertakes to promote and resell them in their own name and for their own account. In Turkish practice it is also called exclusive distributorship.

The contract is not specifically regulated by statute; it is an innominate contract shaped by commercial practice. Unlike an agent, the dealer purchases the goods and bears the sales risk. Territorial protection, minimum purchase commitments, trademark usage terms and non-compete clauses are common features.

Turkish courts accept that, upon termination and where the conditions are met, the dealer may claim an indemnity by analogy with agency rules. Termination of long-standing dealerships without just cause is a typical source of compensation disputes.

Not to be confused with

Acente ile karıştırılmamalıdır: acente tacir adına hareket eder ve satış riski taşımaz, bayi ise malı satın alıp kendi adına satar.

The glossary is provided for information only and does not constitute legal advice. What a term means in a specific case depends on the details of the file.