Q&As

What key issues should be considered where customer (C) has a direct relationship with supplier (A) (who works with nominated supplier (B) on C's behalf), if C wishes to implement a direct rebate scheme with B?

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Published on: 16 November 2023
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The nature of the legal relationships

Its important to be clear on the nature of the legal relationships between each of supplier A, supplier B and customer C.

It is stated that customer C and supplier A have a direct contractual relationship between them. It will be necessary to review the terms of that contract, in order to identify if the proposed course of action will be in breach of the specific terms of the agreement, or otherwise cause a conflict or ambiguity leading to a commercial risk.

It is stated that ‘A works with another nominated supplier B on our behalf’. ‘On our behalf’ indicates the possibility that supplier A may be acting in some capacity as an agent of C in its dealings with supplier B.

Agency is a relationship under which a principal appoints an agent to act under their direction and on their

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Jurisdiction(s):
United Kingdom

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