Reasonable Notice Termination Distribution Agreement
Where the long-standing business relationship between the parties is to be classified as a contract and, consequently, subject to Article 5(1), it must be decided whether it is to be classified as a `contract of sale` or a `contract for the provision of services`. In the first case, the courts of the place of delivery of the goods are competent, in the second case, the courts of the place where the service is provided. This means that, in the first case, the supplier has the possibility to bring an action before its own courts (if it demonstrates that the delivery was agreed in its place of business), while in the second case, the courts of the reseller, i.e. the place where the distribution service is provided, are in any event competent.