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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.
Signing a distribution agreement with a local distributor in the United States of America is one of the most common ways for foreign companies to enter the American market. It is also a great way to test whether a product can be marketed in the United States, without taking too many risks.
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.
A distribution agreement is a legal agreement between a supplier of goods and a distributor of goods. The supplier may be a manufacturer, or may itself be a distributor reselling another's goods.
When drafting a distribution agreement, it is essential to consider how it may be terminated. Clear and express provision for termination should be made in the agreement. Provision is often made for termination upon a party's serious breach of the agreement, or upon their insolvency.