That the difference is important, is shown by the ruling of the Provisional Judge dated June 14, 2022 of the District Court of North Holland.
The court stated that the qualification of a distribution agreement depends on the circumstances of the case, such as a long-term commercial relationship, the designation as distributor by the parties themselves, participation in the manufacturer’s commercial strategy, especially in advertising campaigns, an exclusive cooperation, the degree of consultation between the parties, price agreements, or a minimum purchase obligation and the obligation to promote sales. Thus, a series of successive purchase agreements does not necessarily qualify as a distribution agreement.
The difference is important. First, the termination of a distribution agreement usually requires a reasonable period of time. With a purchase agreement a termination notice is not needed. In addition, it also plays a role in determining the court’s jurisdiction. With a purchase contract, the court of the place of delivery is decisive, whereas with a distribution contract, the distribution is decisive. A distributor can then usually go to court in his own country, whilst the buyer cannot.
