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The Distributor Agreement should clearly set forth the duties, responsibilities and expectations of each of the parties. The Distributor Agreement should also set forth provisions related to limitations and protections that each party can understand.
Six Rules for Negotiating a Better Distribution AgreementBalance. Balance in a distribution agreement ensures that neither party holds unfair power over the other.Due Diligence.Annual Termination and Semiautomatic Renewal.Comparison with Proven Industry Agreements.Four Eyes versus Two Eyes.Cause and Convenience.
What to Include In A Distributorship Agreement?Exclusive Distributor.Terms And Conditions Of Sale.Pricing.Term Of The Agreement.Marketing rights.Trademark licensing.The geographical territory covered by the agreement.Performance.More items...
Exclusive dealing or requirements contracts between manufacturers and retailers are common and are generally lawful.
Here is a checklist of ten common mistakes to avoid when drafting your next distributor agreement.Too Much Too Fast.Termination for Cause Only.Annual Termination and Semiautomatic Renewal.Exclusive or Nonexclusive.Frequency of Price Changes.Termination by Only One Party - Not Both.Frequency of Amendments.More items...
Distribution Agreement Checklist Distribution Agreement Definitions. Specify, define and describe the product and/or service. Distribution Grant. Exclusivity. Sub-distributors. Orders. Territory. Term. Obligations of Distributor: Pricing, Delivery and Payment:More items...
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.
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.
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...