Distribution agreements are not governed by any special legislation but primarily rely on written contracts and the general principles of contract law.
Other applicable laws governing the following may additionally apply:
- sale of goods – warranties, transfer of risk, and ownership of goods;
- consumer protection – the quality of/defects in goods, safeguard against unfair trade practices, deficiency in services;
- competition/anti-trust – impact on competition or creation of barriers to entry for new players;
- tax laws – goods and services taxes, customs duty for imports, double taxation avoidance schemes;
- intellectual property – where handling of trademark or packaging is contemplated;
- foreign exchange laws – for import of goods into India, remittance of payments outside India; and
- product-specific laws, if any.
Additionally, if a foreign supplier/manufacturer were to establish its own entity in India to import and distribute its products, such investment would be governed by the foreign investment policy of the Government of India.