Can I stop a distributor selling outside their territory?

 

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22. Can I stop a distributor selling outside their territory?

Unless you have a market share of over 30 per cent, your agreement can prevent the distributor from actively selling outside the territory or to customers who have been allocated to another distributor.

However, the agreement cannot restrict passive sales - for example, if a customer approaches the distributor, or if the distributor sells outside the territory through his website.