Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Agreement definition

What does Agreement mean? In competition law practice, an agreement is any form of coordination between undertakings that shows a meeting of minds about market conduct (for example pricing, output, customers or territories). It is not limited to a legally enforceable contract: it includes informal or “gentlemen’s” understandings, oral arrangements, email exchanges and tacit understandings, and extends to decisions of associations of undertakings. Mere parallel conduct is insufficient without evidence of contact or communication. The term is used in legislation and developed by case law: Article 101 TFEU, section 4 of Ireland’s Competition Act 2002, and the UK Chapter I prohibition in the Competition...

Drop shipping agreements in the UK: review and negotiation guide for manufacturer-merchant models covering consumer law, UK GDPR, order fulfilment, risk, title and after-sales obligations

Published by a LexisNexis Commercial expert

Practice notes

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Scope and purpose

This Practice Note is designed to support the review and/or negotiation of a drop ship Agreement, and is issued alongside Precedents: Drop ship agreement—pro-customer (merchant) and Drop ship agreement—pro-supplier. The expression ‘drop shipping’ is frequently used loosely to describe a range of supply chain structures and, in theory, may occur at several different points in the chain, eg manufacturer to distributor, distributor to merchant, or manufacturer to merchant. The common thread across these variants is an arrangement enabling a merchant to trade without stock holding constraints by placing responsibility for physical inventory and fulfilment with a third party. Traditionally that third party was the goods’ manufacturer; however, with the growth of multiple platforms, it may equally be another reseller. The above Precedents reflect the classic drop shipping model where the third party is the manufacturer (or other seller) to the merchant of the drop shipped goods. If the inventory manager is not the manufacturer/seller of the goods but is an unrelated third party, then when acting for the merchant you will require distinct contracts (one with the seller...

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Web page updated on 22/05/2026

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