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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.
A master distributor agreement is a legal agreement that allows a manufacturer to enter into a contract with another party, known as a distributor, who will sell and market the manufacturer's goods on their behalf.
How Distribution Agreements WorkSet an appointment with the manufacturer.Negotiate the distribution terms.Review specifics, such as promotional literature.Hire a business lawyer to help you draft the terms.Sign or renegotiate the contract.Begin executing the agreement as contained within provisions.
Territory: The agreement should specifically define the area in which the distributor is permitted to sell and promote the products. b. Products: The agreement should specify what products, product lines, or brands are included under the agreement.