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The tutorial discusses essential elements to include in a distribution agreement. A critical first step is ensuring clarity regarding the products covered in the agreement. It should explicitly state the specific products to be distributed, reducing ambiguity about distribution rights. This clarity is especially important when exclusive rights are granted, such as exclusive distribution rights in a specific region (e.g., Australia). By clearly detailing the products and rights, potential disputes can be avoided, as both parties will have a mutual understanding of the agreement’s terms. The tutorial emphasizes the importance of this clarity to ensure a smooth distribution relationship.