Sales and Marketing Contract Act in Bangladesh

12 · 19 · 23


Sales and marketing agreements, herein referred to as the aforementioned agreements, are fundamental legal instruments that establish and regulate the intricate dynamics between manufacturers, distributors, and marketing agencies.

In the jurisdiction of Bangladesh, it is imperative to note that the aforementioned contracts are subject to meticulous legal examination with the primary objective of upholding equitable practices, safeguarding the interests of all relevant parties, and preserving a Sales and marketing business environment that is both competitive and ethically sound.

II. Legal framework

A. The Contract Act, 1872
The Contract Act of 1872, hereinafter referred to as “the Act,” is a pivotal legal framework governing contractual relations within the jurisdiction of Bangladesh. Sales and marketing agreements, being contracts, are subject to the principles set forth in the aforementioned Act.

These agreements encompass the fundamental components necessary for a contract to be legally binding, as well as provisions addressing the terms and remedies in the event of a breach of contract.

B. Competition Act, 2012
Competition law, with its overarching objective of preventing anti-competitive practices and fostering an environment conducive to fair competition, seeks to safeguard the integrity and vitality of market dynamics.

Sales and marketing agreements undergo meticulous scrutiny to ascertain that they do not culminate in the establishment of market dominance, the exploitation of market power, or the engagement in unfair trading practices that could hinder the promotion of fair competition.

III. Key Elements of Sales and Marketing Agreements

A. Area and time period
The aforementioned agreements commonly delineate the geographical region (hereinafter referred to as “territory”) that the retailer or marketing entity shall encompass, as well as the duration of said agreement. It is imperative to establish a clear and unambiguous demarcation of these aforementioned facets, as doing so serves to preempt any potential conflicts and guarantees that each party involved possesses a comprehensive understanding of their respective entitlements and responsibilities.

The aforementioned contract duly delineates the respective rights and obligations of each party thereto. The aforementioned provisions encompass the entitlements bestowed upon the retailer or marketer, the duties pertaining to the promotion of the product, and the obligations concerning the provision of the product, ensuring its quality, and adhering to legal standards.

The pricing process and payment terms are crucial components that merit significant consideration and attention. The undersigned party hereby requests that the contractual agreement explicitly delineate the method by which pricing shall be ascertained, including any provisions for potential discounts or incentives, as well as mutually concur on a mutually acceptable payment schedule. Ensuring clarity with respect to these aspects serves to mitigate the likelihood of any prospective financial disputes.

In the realm of sales and marketing agreements, it is not uncommon for the utilization of trademarks, logos, and other forms of intellectual property to come into play. The aforementioned agreement shall duly govern the provision of licenses or rights of use, as well as impose restrictions on said use and establish measures to diligently safeguard intellectual property against any potential infringement.

e Termination and Dispute Settlement
The inclusion of termination and dispute resolution provisions holds significant importance. The contract shall duly delineate the stipulations governing the termination of the contract by either party, as well as the prescribed procedure for the amicable resolution of disputes, typically accomplished through the means of negotiation, mediation, or arbitration.

IV. Complying with Competition Laws

In light of the paramount significance of equitable competition, it is imperative that sales and marketing agreements adhere to the provisions set forth by competition laws. Agreements that have the potential to impede competition, establish monopolistic control, or may be susceptible to legal scrutiny due to anti-competitive conduct. Ensuring compliance is of utmost importance in order to mitigate the risk of incurring penalties and encountering legal complexities.


The paramount consideration is the protection of the consumer. Contracts are required to adhere to the legal rights of consumers and guarantee that marketing practices are characterized by transparency, while also ensuring that products meet the established safety and quality standards. Engaging in conduct that contravenes consumer protection laws may result in legal ramifications and have detrimental effects on the company’s standing and public perception.

VI. E-commerce and digital marketing

In the contemporary epoch of digital transformation, it is commonplace for sales and marketing agreements to incorporate facets pertaining to electronic commerce and the realm of digital marketing. It is incumbent upon companies to adeptly maneuver through the intricate legal intricacies surrounding online transactions, data privacy, and digital advertising, in order to guarantee strict adherence to the continuously expanding body of laws.

VII. Confidentiality and privacy

In order to safeguard the integrity of sensitive information, it is customary for sales and marketing agreements to incorporate provisions pertaining to confidentiality and non-disclosure. The aforementioned provisions delineate the responsibilities of each party with regards to upholding the confidentiality of specific information, as well as the repercussions that may ensue in the event of any violation of said obligation.

VIII. Government approval and approval

In certain instances, it may be necessary for industries and products to obtain government approval or approval for the purposes of sale and marketing. The aforementioned agreement shall duly govern the allocation of responsibilities pertaining to the acquisition of said approvals and the diligent adherence to regulatory obligations.

IX. Change of situation

In a dynamic Sales and marketing business environment, it is imperative to emphasize the significance of flexibility. The contract ought to include stipulations to duly address this matter.

Contact the Best Barrister and Law Firm in Bangladesh:

DHAKA: House 410, ROAD 29, Mohakhali DOHS
DUBAI: Rolex Building, L-12 Sheikh Zayed Road
LONDON: 1156, St Giles Avenue, Dagenham

 Email Addresses:

24/7 Contact Numbers, Even During Holidays:

Related Posts

Bangladeshi private limited company formation

Bangladeshi private limited company formation

The establishment of a private limited company in Bangladesh gives a multiplicity of benefits, one of which is the removal of personal accountability. Additionally, the creation of such a firm allows for increased ownership and managerial autonomy. In this...

About the Author


Call us!
× Whatsapp