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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.
Best Practices to Protect Your MerchandiseUnderstand Your Customer Base.Do Your Homework.Protect Yourself in Writing.Avoid Inconsistent Pricing.Manage Your Route to Market.Monitor Case Marking.Consider Distinct Package Sizing.Examine All Purchase Orders.More items...?
Distribution agreements, also called wholesale distribution agreements, are contracts between a distributor and manufacturer. They allow the distributor to sell, market, and profit from the sales of a manufacturer's or wholesaler's product in bulk.
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.
Distribution deals. One type of distribution deal or distro deal is quite simply the agreement between artist and distributor, to allow you access to the relevant streaming platforms.
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.
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...
In legal terms, an Agent is acting on behalf of your Company whereas a Distributor is likely to act on its own behalf but will still have a contractual relationship with your Company to purchase certain products or goods and then market same directly subject to any restraints you may seek to impose.
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...