This paper use the option theory to create a distribution contract, price the returning right included in the contract, and provide a reference for enterprises and dealers sharing risks.

SAP supplied ERP software through a third-party reseller, but did not perform any contractual services directly to GSIS.

On May 15th GM sent letters to 1, 100 of its dealers, the bottom 18% in performance terms, telling them that their contracts would not be renewed in October next year.