A distributor is an entity that buys noncompeting products or product lines, warehouses them, and resells them to retailers or direct to the end users or customers. Most distributors provide strong manpower and cash support to the supplier or manufacturer's promotional efforts. They usually also provide a range of services (such as product information, estimates, technical support, after-sales services, credit) to their customers.
A manufacturer is an entity that makes a good through a process involving raw materials, components, or assemblies, usually on a large scale with different operations divided among different workers. Commonly used interchangeably with producer.
Distributorship Agreement Form In San Bernardino
Category:
State:
Multi-State
County:
San Bernardino
Control #:
US-0012BG
Format:
Word;
Rich Text
Instant download
Description
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FAQ
The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality. In some states, elements of consideration can be satisfied by a valid substitute.
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.
Contracts are made up of three basic parts – an offer, an acceptance and consideration. The offer and acceptance are what the purpose of the agreement is between the parties.
A distribution agreement is a powerful tool that defines the rules of engagement between suppliers and distributors. These agreements can not only streamline your distribution process but also shield your business from potential pitfalls.
Advantages of distribution A supplier will not usually suffer any liability incurred as a result of the distributor's activities, whereas under an agency relationship, the principal is liable for the acts of its agent.
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.
A distributor typically works with multiple manufacturers and multiple downstream entities. For each manufacturer, the distributor serves as an agent that enters into an agreement with the manufacturer to sell its products to retailers, VARs or wholesalers.
Under the terms of a licence or distribution agreement a licensee is generally granted the right to use your intellectual property (including your trade mark) or to distribute your product within a defined territory.
Non-Exclusive License: Allows the licensor to license the IP to multiple licensees. This is commonly used when the licensor wants to maximize reach and distribution. Sole License: Gives one licensee rights to the IP, but the licensor can still use the IP themselves.