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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.
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.
Types of distribution agreement Exclusive Distribution Agreements. Sole Distribution Agreements. Non-Exclusive Distribution Agreements. What is a distribution agreement?
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.
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.