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A distribution agreement is a legal contract between your company and distributors, defining the guidelines to market and sell your products. A distribution agreement grants a distributor the rights to market and sell your company products.
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 following is a checklist of factors to be considered when drafting a distribution contract: terms and conditions of sale; term for which the contract is in effect; marketing rights; trademark licensing; geographical territory covered by the agreement; performance; reporting; and.
A distribution agreement is one under which a supplier or manufacturer of goods agrees that an independent third party will market and sell the goods. The distributor buys the goods on their own account and trades under their own name.
In brief, a comprehensive distribution agreement should address the key matters regarding the relationship between the supplier and the distributor. Key among these matters are the type of appointment, territory and the price and payment terms among other things.