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What is a Tax Sharing Agreement? A tax sharing agreement (TSA) is a contract created to clarify the economic expectations among members of a related group of corporations included in consolidated or combined reporting tax returns.
The basic elements of a distribution agreement include the term (time period for which the contract is in effect), terms and conditions of supply and the sales territories covered by the agreement (regions within the U.S. and/or international markets).
While it is generally recommended to have a distribution agreement in place, it is not always a legal requirement. The need for a distribution agreement depends on various factors, including the nature of the products or services, the relationship between the parties, and applicable laws and regulations.
In a written distribution contract, there will usually be a right for either party to terminate the contract ?for convenience? by giving a period of notice (such as six or 12 months' notice).
A distribution agreement is one under which a supplier or manufacturer of goods agrees that an independent third party will market the goods. The distributor buys the goods on their own account and trades under their own name.
An important difference between a distribution agreement and a purchase agreement is that the purpose of the purchase agreement is to transfer ownership of a product, while the distribution agreement is aimed at a long-term collaboration between the parties to resell the products.