UNDERSTANDING OF THE EXCLUSIVE DISTRIBUTION CONTRACT AND ITS LEGAL NATURE

Distribution contract is a covenant agreement that does not lead to ownership. In fact، the next sales contract transfers the ownership. Since the distribution contract cannot be specified in the form of well-known traditional and specific contract، it inevitably should be considered under the «no name contract of article 10» of the civil code. In distribution agreement، the distributor is an independent merchant who can freely decide about the method of his activities، so he bears the interest and losses of distributional activities. There are different kinds of distributive contract among which the exclusive distribution is one of the commonest one. From a legal point of view، the problem is that whether the relationship between suppliers and distributors complies with the contract agency brokerage business، branch or subsidiary or it has a specific nature? The current paper aims to scrutinize and investigate the structure of the legal nature of the contract.