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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.
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.
Below is a basic distribution agreement checklist to help you get started: Names 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.
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).
Distribution agreements give a distributor the right and duty to sell and market the supplier's products. It's a win-win situation for both the supplier and the distributor: for a fee or a commission, the distributor markets the product so the supplier doesn't have to worry how to get its products into the right hands.
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.
While similar to distribution agreements, reseller agreements differ in the way the product reaches the consumer. Unlike distributors, resellers don't purchase and store your product, ready to sell. Instead, they act as a middleman, taking a commission when they sell your product to a customer.
What does Distribution Agreement mean? A distribution agreement is one under which a supplier or manufacturer of goods agrees that an independent third party will market and sell the goods. The distributor buys the goods on their own account and trades under their own name.