SSS · Cross-Border Distribution Networks

We chose Turkish law in the contract; are we free of the German goodwill indemnity?

Not always: EU case law can keep the protections of agents and distributors operating in the EU market in force despite the choice of law. We measure the risk through simulation. The reason…

Updated · July 20261 min readCategory · Cross-Border Distribution Networks
Short answer

Not always: EU case law can keep the protections of agents and distributors operating in the EU market in force despite the choice of law. We measure the risk through simulation.

Not always: EU case law can keep the protections of agents and distributors operating in the EU market in force despite the choice of law. We measure the risk through simulation.

The reason a Turkish-law clause is not a clean escape is the “overriding mandatory rule”: EU case law (the Ingmar line) treats the commercial agent’s indemnity as protection that applies to activity within the EU despite a third-country choice of law. So for an EU-based agent or distributor the exposure can survive the clause, and it bites hardest where the dispute lands before an EU court or a tribunal seated in the EU — which is what the risk simulation is really measuring.

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