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Any firm or an individual who facilitates buying and selling of units within a mutual fund between an AMC (Asset Management Company) and interested investors, is categorised as a mutual funds distributor. A distributor is basically an agent supplying goods to a retailer.
A distribution agreement is a legal contract between your company and distributors, defining the guidelines to market and sell your products. A distribution agreement grants a distributor the rights to market and sell your company products.
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.
A distribution agreement is used where one party agrees to resell another party's products but does so as principal. That is, they purchase and take title to the products and assume all the risk of reselling the products.
A distribution agreement is a legal document that outlines the terms and conditions under which a company can distribute its products or services through a third party.
Types of distribution agreement Exclusive Distribution Agreements. Sole Distribution Agreements. Non-Exclusive Distribution Agreements. What is a distribution agreement?
In an equity distribution agreement (also sometimes referred to as a "sales agency agreement" or "placement agency agreement"), a company engages a broker-dealer to conduct ATM offerings of the company's shares under an ATM program (also commonly referred to as an "equity distribution program" or "equity dribble out ...
Best Practices for Negotiating Distribution Agreements What Should a Distribution Agreement Include? ... Don't Make Exclusivity the Goal. ... Focus on Marketing Essentials at First. ... Identify Aftersales Requirements. ... Set Clear Sales Territories. ... Outsource Regulatory Obligations. ... Not Having the Document Reviewed By Multiple People.