Can we retain a lawyer and send Cease and Desists?

We own a USA company. We have a contract in place with a LARGE Chinese company,
to be the sole distributor of a product in the USA.

We have just found out that another company here in the USA are selling the
product, and are buying it direct from the Chinese company.

As we have a sole distributor contract signed by the chinese company, is that
good enough to hire a lawyer for, and have cease and desists etc, sent out?

Asked on April 7, 2016 under Business Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Actually, you can't require the U.S. company to cease and desist: your contract with the Chinese company does not bind or obligate the U.S. company, because it is not a party or signatory to that contract. (Contracts only bind those are parties to them.) Your recourse would be to send a letter to, and if necessary, take legal action against, your Chinese supplier for violating its agreement with you and selling to somone else; the supplier is bound by the contract it entered into with you.


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