Distributor Vs Agent Agreement
Description
How to fill out Distributorship Agreement With Wholesaler?
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FAQ
Therefore the principal assumes legal and commercial risk whereas an agent (normally) does not. A distributor is essentially a purchaser of the supplier's products, which it then sells on to end-user customers.
Agreement of the Parties Appointment, Acceptance & Scope. a. ... Orders, Price, Terms of Sale & Payment. a. ... Representations. ... Responsibilities of Distributor. ... Responsibilities of Company. ... Confidential & Proprietary Information. ... Duration & Termination. ... Right of Parties at Termination.
Agents are paid commission based on an agreed percentage. In contrast, a distributor sells the product direct to the customers, adding on a margin to cover costs and profits. Usually, the commission paid to an agent is less than the margin which the distributor will add. An agent never owns the product.
Below is a basic distribution agreement checklist to help you get started: Names and addresses of both parties. Sale terms and conditions. Contract effective dates. Marketing and intellectual property rights. Defects and returns provisions. Severance terms. Returned goods credits and costs. Exclusivity from competing products.
The Distributor Agreement should clearly set forth the duties, responsibilities and expectations of each of the parties. The Distributor Agreement should also set forth provisions related to limitations and protections that each party can understand.