What Is a Conditional Sales Agreement?

An optional sales agreement is a written agreement between a manufacturer or supplier of a product and a qualified distributor on restrictions on product distribution. It is a sales method used by manufacturers to select sellers according to certain qualification standards. It is generally applicable to certain high-end, sophisticated, and complex products, such as automobiles, electronic equipment, high-end jewelry, high-end watches, and high-end cosmetics. Manufacturers of these products want sellers with certain qualifications and conditions to sell their products to ensure that these complex, sophisticated and expensive products can be properly marketed. Selective sales have a lot of rationality. In practice, they are more positive about this sales method. However, this method may also have the effect of restricting competition. For example, the manufacturer refuses to supply certain qualified sellers, limits the resale price in the selective sales agreement, and stipulates that the seller's conditions exceed a reasonable limit. It needs to be analyzed on a case-by-case basis.

Selective sales agreement

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An optional sales agreement is a written agreement between a manufacturer or supplier of a product and a qualified distributor on restrictions on product distribution. It is a sales method used by manufacturers to select sellers according to certain qualification standards. It is generally applicable to certain high-end, sophisticated, and complex products, such as automobiles, electronic equipment, high-end jewelry, high-end watches, and high-end cosmetics. Manufacturers of these products want sellers with certain qualifications and conditions to sell their products to ensure that these complex, sophisticated and expensive products can be properly marketed. Selective sales have a lot of rationality. In practice, they are more positive about this sales method. However, this method may also have the effect of restricting competition. For example, the manufacturer refuses to supply certain qualified sellers, limits the resale price in the selective sales agreement, and stipulates that the seller's conditions exceed a reasonable limit. It needs to be analyzed on a case-by-case basis.