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.
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.
The agreement should explicitly state the initial period during which the distributor will be engaged. In some cases, a supplier might opt for an initial trial period, during which the distributor's performance is evaluated against predefined sales targets or Key Performance Indicators (KPIs).
A distribution agreement is the perfect place to establish the sales goals and expectations for both parties. The manufacturer wants to ensure that the distributor will actively promote and sell its products in the designated territory or channel and generate a certain level of revenue and profit.
Distributors play an important role in the distribution process by facilitating the movement of goods from producers to the final point of sale or consumption. They typically operate within specific geographic regions or industry sectors, serving as a link between manufacturers and the market.
A distribution deal (also known as distribution contract or distribution agreement) is a legal agreement between one party and another, to handle distribution of a product. There are various forms of distribution deals. There are exclusive and non-exclusive distribution agreements.
Write the contract in six steps Start with a contract template. Open with the basic information. Describe in detail what you have agreed to. Include a description of how the contract will be ended. Write into the contract which laws apply and how disputes will be resolved. Include space for signatures.
How to write an agreement letter Title your document. Provide your personal information and the date. Include the recipient's information. Address the recipient and write your introductory paragraph. Write a detailed body. Conclude your letter with a paragraph, closing remarks, and a signature. Sign your letter.