Document background
The Non-Resale Agreement is essential for businesses operating in South Africa who need to maintain control over their distribution channels, protect their brand integrity, or comply with regulatory requirements. This document is particularly relevant when suppliers need to restrict purchasers from reselling products or services to unauthorized third parties. The agreement must be carefully structured to comply with South African competition law, particularly the Competition Act 89 of 1998, which regulates vertical restraints in distribution agreements. It typically includes detailed provisions on permitted uses, compliance monitoring, and enforcement mechanisms, while considering constitutional principles of freedom of trade and commerce. The document is commonly used in regulated industries, luxury goods markets, technology sector, or where specialized products require controlled distribution channels.
