Document background
The Exclusive Distribution Letter is commonly used in Hong Kong business practice when companies wish to establish a formal distribution relationship without the complexity of a full-length agreement. It's particularly suitable for situations where parties have an existing relationship or prefer a more streamlined approach to documenting their arrangement. The letter format typically includes essential elements such as appointment terms, territory definition, product specifications, and basic commercial terms, while being governed by Hong Kong law. This document type strikes a balance between legal protection and commercial practicality, making it an effective tool for businesses expanding their distribution networks in Hong Kong and surrounding markets. The Exclusive Distribution Letter is often used as an interim measure before a more comprehensive agreement or for smaller-scale distribution arrangements where a full agreement might be excessive.
