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A distribution agreement is a legal contract between your company and distributors, defining the guidelines to market and sell your products. A distribution agreement grants a distributor the rights to market and sell your company products.
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.
Software distribution agreements are necessary for distributors to know how and where to distribute a developer's software, and for developers to define their relationship with distributors. See what goes into a solid software distribution agreement. This article is for informational purposes.
A distribution agreement is a legal contract between your company and distributors, defining the guidelines to market and sell your products. A distribution agreement grants a distributor the rights to market and sell your company products.
Types of distribution agreement Exclusive Distribution Agreements. Sole Distribution Agreements. Non-Exclusive Distribution Agreements. What is a distribution agreement?
Many distribution agreements contain a clause providing what the distributor gets paid for selling the product, as well as a commission based on the number of products it sells. Commissions give the distributor the added incentive of selling as much of the supplier's product as possible.
An important difference between a distribution agreement and a purchase agreement is that the purpose of the purchase agreement is to transfer ownership of a product, while the distribution agreement is aimed at a long-term collaboration between the parties to resell the products.
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.