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    Educational Information Only

    The content on this page is for general educational purposes and does not constitute legal advice. Every legal situation is unique. For matters involving investigation, arrest, litigation, or formal proceedings, consult a qualified legal professional.

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    Business

    Distribution / Agency Agreement

    Agreement appointing a distributor or agent to sell products in Thailand — territory rights, exclusivity, and performance targets.

    Updated:
    Legal Basis: Civil and Commercial Code (Agency); Trade Competition Act B.E. 2560 (2017)Est. Cost: THB 15,000–50,000 for lawyer-drafted agreement

    When to Use

    When appointing a Thai company or individual to distribute your products in Thailand, or when being appointed as a distributor.

    Key Clauses

    Territory

    essential

    Geographic scope — all of Thailand or specific regions. Specify if exclusive or non-exclusive.

    Products

    essential

    Which products are covered. Right to add or remove products.

    Exclusivity

    essential

    Whether the distributor has exclusive rights in the territory. Principal's right to sell directly.

    Pricing & Margin

    essential

    Wholesale price, recommended retail price, minimum margin, and price adjustment mechanisms.

    Performance Targets

    recommended

    Minimum purchase quantities or sales targets. Consequences of missing targets.

    Term & Termination

    essential

    Initial term, renewal conditions, termination notice, and stock buy-back on termination.

    Warnings

    Thai Competition Act (Trade Competition Act B.E. 2560 (2017)) restricts anti-competitive distribution arrangements.

    Exclusive distribution agreements may require Foreign Business License if the principal is foreign.

    Distributors may claim compensation on termination under Thai agency law — address this in the contract.

    Professional Legal Assistance

    When a matter involves investigation, arrest, detention, litigation, or regulatory action, professional legal representation becomes essential.

    Anglo Siam Legal provides experienced legal services across Thailand for both Thai nationals and foreigners.

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