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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.
The following is a checklist of factors to be considered when drafting a distribution contract: terms and conditions of sale; term for which the contract is in effect; marketing rights; trademark licensing; geographical territory covered by the agreement; performance; reporting; and.
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.
What are the key elements of a distribution agreement? There are a number of key issues that need to be included in a distribution agreement including exclusivity, term, the product(s), price, delivery, and the relevant territory.
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.
Negotiating a Distributorship Agreement: Five Critical Steps to Success Execute a master agreement. ... Define the relevant goods subject to the agreement. ... Address all relevant intellectual property issues. ... Make sure renewal options and termination clauses allow the parties to adjust to changing market conditions.
Exclusive distribution is defined as when a company grants another company or individual the sole right to sell, distribute, or resell its products or services in a defined territory. The terms of an exclusive distribution agreement vary depending on the industry and product being distributed.
A Standard Clause providing a distributor with the exclusive right to resell products purchased from a manufacturer, producer, or other supplier within a specified geographic territory during the term of the underlying distribution agreement.