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A distribution deal (also known as distribution contract or distribution agreement) is a legal agreement between one party and another, to handle distribution of a product. There are various forms of distribution deals. There are exclusive and non-exclusive distribution agreements.
Products: The agreement should specify what products, product lines, or brands are included under the agreement. The agreement should also address whether and to what extent any new brands developed or acquired by the supplier would be included, or specifically, excluded from the agreement.
Most U.S. courts interpreting the CISG say, "no." These courts have held that the CISG does not apply to distribution agreements because they merely "create a framework for the future sale of goods".
A distributor agreement, also known as a distribution agreement, is a contract between channel partners that stipulates the responsibilities of both parties.
Distribution agreements define the terms and conditions under which a distributor may sell products provided by a supplier. Such an agreement may be for a limited term, and be further restricted by territory and distribution channel.
Parts of a Distribution AgreementNames 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...
Key Clauses in an International Distribution Agreement Among other things, some of the main clauses that you typically will find in an international distribution contract include products and territory, obligations of the parties, exclusivity provisions, renewal/termination, and dispute resolution.
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.
Consider setting up domestic distribution first.Find target regions and create a go-to-market strategy.Research and prepare to complete legal and trade certifications.Consider language translation and product market fit.Create an international distribution agreement.More items...?