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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.
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.Resellers generally only sell to end users or wholesalers.
Exclusive dealing or requirements contracts between manufacturers and retailers are common and are generally lawful.
A reseller agreement can mean something different depending on who you ask. Typically, these are agreements where a vendor contracts with a reseller to allow them to sell the vendor's product or services to a third-party. There is the potential for misunderstandings if the wrong terms are included in the agreement.
While brand-related intellectual property is typically held by the supplier, a thorough distribution agreement will always include an intellectual property clause that will give the distributor the legal right to use the supplier's intellectual property, including brand names and trademarks, for purposes of its sales
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. circumstances under which the contract may be terminated.
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.
As discussed in the Fact Sheets on Dealings in the Supply Chain, exclusive contracts between manufacturers and suppliers, or between manufacturers and dealers, are generally lawful because they improve competition among the brands of different manufacturers (interbrand competition).
Exclusive Distributor. Terms And Conditions Of Sale. Pricing. Term Of The Agreement. Marketing rights. Trademark licensing. The geographical territory covered by the agreement. Performance.