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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 basic elements of a distribution agreement include the term (time period for which the contract is in effect), terms and conditions of supply and the sales territories covered by the agreement (regions within the U.S. and/or international markets).
Types of distribution agreement Exclusive Distribution Agreements. Sole Distribution Agreements. Non-Exclusive Distribution Agreements. What is a distribution agreement?
While it is generally recommended to have a distribution agreement in place, it is not always a legal requirement. The need for a distribution agreement depends on various factors, including the nature of the products or services, the relationship between the parties, and applicable laws and regulations.
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.
A distribution agreement is one under which a supplier or manufacturer of goods agrees that an independent third party will market the goods. The distributor buys the goods on their own account and trades under their own name.
A music distribution deal is a contract between a record label and a music distributor. The distributor will then distribute the music to various retailers, such as iTunes, Spotify, and Amazon who will sell the music to consumers.
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.