What should be in a distribution agreement?
Products: The agreement should specify what products, product lines, or brands are included under the agreement. The agreement should also address whether and to what extent any new brands developed or acquired by the supplier would be included, or specifically, excluded from the agreement.
How do I write a distributor agreement?
What to Include In A Distributorship Agreement?
- Exclusive Distributor.
- Terms And Conditions Of Sale.
- Term Of The Agreement.
- Marketing rights.
- Trademark licensing.
- The geographical territory covered by the agreement.
Is a distribution agreement a contract?
A distribution agreement (Distribution Agreement) is a form of commercial contract where one party, the distributor (Distributor) is granted the right to distribute goods or services of another supplier (Supplier) to clients or customers usually in a distinct territory.
What is a supply and distribution agreement?
A distribution agreement usually involves a distributor who buys products from a manufacturer or other seller, takes title to those goods, and resells them to its customers. These agreements are often part of complex supply chains with manufacturers, resellers, distributors, and customers all playing different roles.
Why do we need distribution agreement?
They allow the distributor to sell, market, and profit from the sales of a manufacturer’s or wholesaler’s product in bulk. A distribution agreement typically uses the terms and conditions that address territories, exclusivity rights, reporting requirements, and more.
What is the purpose of distribution agreement?
A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.
Who are the parties in a distribution agreement?
The agreement is usually between a manufacturer or vendor and a distributor but, in some cases, may involve two distributors or a distributor and some other channel entity.
Are exclusive distribution agreements legal?
Exclusive dealing or requirements contracts between manufacturers and retailers are common and are generally lawful.
What is the purpose of a distribution agreement?
A distribution agreement is one under which a supplier or manufacturer of goods agrees that an independent third party will market and sell the goods. The distributor buys the goods on their own account and trades under their own name.
What are the obligations of a distributor?
Distributor’s obligations shall include, but not be limited to, preparing promotional materials in appropriate languages for the Territory, advertising the Products in trade publications within the Territory, participating in appropriate trade shows, and directly soliciting orders from customers for the Product.
How do I terminate a distributor agreement?
When drafting a distribution agreement, it is essential to consider how it may be terminated. Clear and express provision for termination should be made in the agreement. Provision is often made for termination upon a party’s serious breach of the agreement, or upon their insolvency.
What is a distribution agreement?
Distribution agreements give a distributor the right and duty to sell and market the supplier’s products. It’s a win-win situation for both the supplier and the distributor: for a fee or a commission, the distributor markets the product so the supplier doesn’t have to worry how to get its products into the right hands.
What are the terms and conditions of an exclusive distribution agreement?
Subject to the terms and conditions of this Exclusive Distribution Agreement, Supplier appoints Distributor, and Distributor accepts such appointment and agrees to act as Supplier’s exclusive distributor of the Supplier Products (defined below) within the geographical territory defined as follows (the “Territory”): b.
What happens when a distributor terminates a purchase agreement?
Upon the Agreement’s termination, the Supplier can repurchase or cause its successor to purchase the Distributor’s existing inventory of Supplier’s Products at the Distributor’s laid-in cost, providing the Distributor has stored and maintained the Products in a saleable condition 20.
What is appointment of exclusive distribution agreement?
Appointment a. Subject to the terms and conditions of this Exclusive Distribution Agreement, Supplier appoints Distributor, and Distributor accepts such appointment and agrees to act as Supplier’s exclusive distributor of the Supplier Products (defined below) within the geographical territory defined as follows (the “Territory”): b.