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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.
An example of exclusive distribution is Apple solely authorizing AT&T to be the distributor of the iPhone to end users.
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.
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.
Which of the following is the best example of exclusive distribution? A maker of fine watches sells only through official dealers, which are limited in number. The maker of a perfume will only distribute its product to certain upscale nation-wide department stores.