Massachusetts Checklist for a Distribution Agreement
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How to fill out Checklist For A Distribution Agreement?
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FAQ
Distribution agreements define the terms and conditions under which a distributor may sell products provided by a supplier. Such an agreement may be for a limited term, and be further restricted by territory and distribution channel.
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...?
A distributor agreement, also known as a distribution agreement, is a contract between channel partners that stipulates the responsibilities of both parties.
Some of the responsibilities of the distributor will include:Maintain a sufficient inventory.Purchase expectations at a minimum.Set goals for sales, accountability, and customer service.Other distributor responsibilities include sales quotas, sales campaigns, paperwork, and customer service after the sale.
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.
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...
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.
An agency distribution agreement creates a fiduciary relationship between the agent and the manufacturer, allowing the agent to create legal relationships between the manufacturer and its customers.
A distributorship agreement is a document that creates a relationship of distributorship between a manufacturer and a distributor. The agreement confers on the distributor the right to supply the manufacturer's goods within a region or regions.
A distribution agreement usually involves a distributor who buys products from a manufacturer or other seller, takes title to those goods, and resells them to its customers.