Distribution Agreement With Vendors
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FAQ
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.
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.
The distributor usually buys directly from the manufacturer, holds inventory of the product, provides after-sale services, and resells the product to resellers and sometimes directly to end users.
Parts of a Distribution AgreementNames 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.More items...
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.
