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Exclusive dealing or requirements contracts between manufacturers and retailers are common and are generally lawful.
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.
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.
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.More items...
Products: The agreement should specify what products, product lines, or brands are included under the agreement. The agreement should also address whether and to what extent any new brands developed or acquired by the supplier would be included, or specifically, excluded from the agreement.
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...
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.
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.
Software distribution agreements specifically allow distributors to market and sell the developer's software to end users. A software distribution agreement sets forth the rights and duties of both the developer and the distributor to avoid disputes later on.
In its most basic form, a distribution agreement is a legally binding agreement between a supplier and a distributor of products. An informal distribution agreement between the supplier or manufacturer and the distributor is also possible.