Franchise, distribution, dealership and supply disputes often combine unpaid invoices, territory, targets, quality, termination, inventory, branding and customer-transition issues. Businesses should separate immediate operational decisions from the legal claims to avoid worsening losses.
Common disputes
- Territory and exclusivity breaches
- Minimum purchase or sales-target failures
- Defective goods and warranty responsibility
- Outstanding invoices, rebates and credit notes
- Wrongful termination or non-renewal
- Post-termination stock, trademarks and confidential information
Contract provisions to examine
Review incorporation of standard terms, order-of-precedence clauses, acceptance and rejection procedures, limitation of liability, indemnities, termination, post-exit obligations, governing law, seat and appointment mechanism.
Evidence map
- Executed master agreement and amendments
- Purchase orders, dispatch and delivery records
- Quality reports, returns and credit notes
- Target statements and territory communications
- Invoices, ledger and reconciliation
- Brand, customer and inventory transition records
Before invoking arbitration
- Quantify claim and counterclaim separately.
- Check contractual notice and cure requirements.
- Preserve email, ERP and messaging records.
- Consider interim protection for stock, marks or receivables.
- Prepare a commercially realistic settlement range.
Conciliation opportunity
A structured conciliation may help where the parties need a managed exit, revised territory, instalment payment or stock buyback. Settlement terms should cover releases, tax documentation, default and use of intellectual property.
Frequently asked questions
Can a terminated distributor continue using the brand?
Rights depend on the agreement, trademark permissions, inventory transition and any interim orders.
Are unsigned purchase orders relevant?
Formation and incorporation depend on the parties’ documents and conduct; all transaction records should be reviewed.
Can debt and damages be claimed together?
Claims must be legally and factually supported, avoid duplication and account for mitigation.
Official reference: Arbitration and Conciliation Act, 1996.
Related resources
View the Kolkata business arbitration and commercial dispute management guide.
Important: General information only.
