A few importers may have had their fingers burnt after a producer pulled out of an agreement. Without proper specialist legal work it is usually left to the importer to take the hit, which can sometimes be detrimental in these tough economic times.

Park says: "People come to me with a problem that's gone too far, and usually that problem was preventable."

Here are five essential points for importers to cover in the agency/distribution contract:

1) Agree terms for security of tenure
Get as much as you can – ideally a fixed minimum term and then a sufficient notice period.
2) Ensure product quality is guaranteed
Get a full guarantee and an indemnity for defective products – make sure the producer has adequate insurance.
3) Risk of staff jumping ship to work for producer
Get producer to agree not to poach your key people.
4) Detail expectations on exclusivity
Spell it out – the producer must not appoint any other agent or distributor for your territory/sector; or make direct sales himself to customers in your territory/sector.
5) Consider stock on termination
Would you want it on your hands? Get the producer to agree to buy it back if required.

Andrew Park has been qualified since 1978 and a specialist wine law solicitor since 1995. For further advice on how you can cover yourself visit appwinelaw.com.