A distribution agreement is an agreement between a supplier of goods and an independent distributor. The distributor is appointed to market the goods and is required to purchase the goods and trade... ... Read more
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How to Make a Distribution Agreement
A distribution agreement is an agreement between a supplier of goods and an independent distributor. The distributor is appointed to market the goods and is required to purchase the goods and trade under their own name. The agreement sets out the products to be sold and the distributor's sales targets as well as the conditions under which such distribution can be executed.
Expand the market area of your products by appointing a distributor using this distribution agreement. This distributor agreement sets out the products to be sold and the distributor's sales targets. You can decide whether you want the distributor to be the only seller or one of many in a specific area. You can also specify which markets or geographical areas the distributor will operate, and when and how the agreement can be terminated.
This distribution agreement covers:
the basis of appointment (exclusive, sole or non-exclusive distributor)
the geographical area(s)
the duties of distributor and supplier
the minimum purchase targets
the price payable by distributor
ending the agreement
Use this distribution agreement:
to appoint an independent distributor who buys your products and resells them in a defined geographical area
to expand the market for your products
to ensure you have a well-run distribution network in place
You need a distribution agreement if you want to expand your business into new markets or territories and you want to ensure that you have in place a well-run distribution network.
An exclusive distributor is appointed to be the only distributor in the chosen territory and the supplier cannot make sales in that territory.
A sole distributor is the only distributor in a chosen territory and the supplier can make sales in that territory.
A non-exclusive distributor is not exclusive or the sole distributor. This means that the supplier can make sales and appoint other distributors in the designated territory.
You can restrict the distributor from selling in areas that a supplier has reserved for itself or an exclusive distributor. In this document, you can choose to restrict the distributor engaging in competing business during the life of this agreement and for a period after the end of it.
Under this agreement, a distributor must:
A distributor will only be responsible for any loss or damage to the products after the products are delivered to them.
Prices for products can be attached in a schedule specified in an attached document to the printed agreement.
Last reviewed or updated 30/03/2022
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