SSS · Goodwill Indemnity Claims

Can we claim goodwill indemnity if we terminate the contract ourselves?

As a rule, termination by the distributor itself defeats the claim; however, there are exceptions where the manufacturer’s conduct forced the termination. That is why the structuring of the…

Updated · July 20261 min readCategory · Goodwill Indemnity Claims
Short answer

As a rule, termination by the distributor itself defeats the claim; however, there are exceptions where the manufacturer’s conduct forced the termination. That is why the structuring of the termination is a strategic decision.

As a rule, termination by the distributor itself defeats the claim; however, there are exceptions where the manufacturer’s conduct forced the termination. That is why the structuring of the termination is a strategic decision.

One further condition is easy to overlook: the claim also requires the supplier to keep drawing substantial benefit from the customer base you built after you leave. So the analysis is twofold — how the termination came about, and whether the manufacturer still profits from your portfolio. Both feed the decision on how to structure any exit.

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Goodwill Indemnity Claims

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