Maryland Distribution Agreement regarding contracts being sold and distributed through Broker or Dealer
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How to fill out Distribution Agreement Regarding Contracts Being Sold And Distributed Through Broker Or Dealer?
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FAQ
Specifying the product and its delivery dates. Specifying whether payment is commission-based or whether there is another type of fee arrangement. Describing the relationship between the parties, such as the distributor being an independent contractor and not an employee of the supplier.
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.
Key elements of a distribution agreement A distribution agreement should include key elements such as the scope and duration, rights and obligations, termination and dispute resolution, and confidentiality and intellectual property to ensure a clear and mutually beneficial relationship between you and your distributor.
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.
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 key terms of a distribution agreement can vary on multiple factors including the: product to be distributed; appointment of the distributor; and. obligations that each party have relating to the marketing, sale and distribution of the product.
In a distributor agreement, exclusivity is always an essential aspect. It means that the distributor has the exclusive rights to sell the products of a supplier in a particular area. And during the term of the agreement, the supplier cannot sell the goods in the sales territory.
Similar to a distributor, a reseller sells your products to customers. However, the main difference between a distributor and reseller is the lack of warehousing. Resellers won't purchase or hold your inventory.