Goodwill in Vertical Agreements

Vertical agreements include those contracts which are entered into between the holders of the valuable commercial right like name, trademark and/or special process of production or distribution and another party in vertical line in order to cooperate in various commercial levels, and by virtue of which the first party shall grant the licence of marketing, sale or other his economic activities to another party. These contracts have involved the most rate of agreements in commercial and economic exchanges and expansion of knowledge and technology, and all are established in a unified principles which one of them is the Goodwill Principle. This was admitted in international law in general and in international commercial law in particular. And, a vast rate of duties and tasks like trusteeship, good performance, accurate information, financial soundness, etc. were inflicted to the both parties of a vertical agreement. It is herein dealt with the effect of the goodwill on these agreements and outcomes resulting therefrom.