Termination for Distributor's Uncured Default Clause

Summary

This clause can be included in a distribution agreement to provide the manufacturer or supplier with the right to terminate the agreement upon the distributor's uncured default. The clause includes practical guidance and drafting notes. The ability to terminate a distribution agreement in the event of an uncured material breach by the distributor should always be included. Termination in the event of breach will usually occur after the manufacturer provides notice of the breach, which breach is not remedied within the designated cure period. However, for certain events the manufacturer may prefer that the distributor have no opportunity to cure the breach. For an agreement template, see Distribution Agreement (Pro-Manufacturer) and Distribution Agreement (Pro-supplier, Short-form). For additional guidance on distribution agreements, see Drafting and Negotiating a Distribution Agreement, Distributor, Reseller, and Dealer Laws, and Distributor Resource Kit.