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A master distributor agreement is a legal agreement that allows a manufacturer to enter into a contract with another party, known as a distributor, who will sell and market the manufacturer's goods on their behalf.
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.
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.
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...
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.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.
What is a Distribution Agreement? Distribution agreements, also called wholesale distribution agreements, are contracts between a distributor and manufacturer. They allow the distributor to sell, market, and profit from the sales of a manufacturer's or wholesaler's product in bulk.
An example of a distributor is a person who sells Tupperware home products. An example of a distributor is the part in a gas lawnmower that controls the flow of electrical currents to spark plugs. One that markets or sells merchandise, especially a wholesaler.