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What is the meaning of exclusive distribution agreement?

Exclusive distribution is an agreement between a supplier and a retailer granting the retailer exclusive rights within a specific geographical area to carry the suppliers product. Often the supplier severely limits the number of products it supplies the retailer as well.

What is an exclusive distribution agreement?

Under an Exclusive Distribution agreement, the supplier appoints one distributor in a defined territory that has the exclusive right to sell the products of the supplier. Under an Exclusive Distribution agreement, the supplier cannot sell directly to customers in that territory either.

What is a distribution agreement?

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.

What does distributor exclusive mean?

The term exclusive distributor means the wholesale distributor that directly purchased the product from the manufacturer and is the sole distributor of that manufacturers product to a subsequent repackager, wholesale distributor, or dispenser.

How do you write an exclusive distribution agreement?

Common Sections in Exclusive Distribution Agreements DEFINITIONS. GENERAL APPOINTMENT. GENERAL TERMS OF DISTRIBUTORSHIP. PRICE, PAYMENT AND DELIVERY TERMS. WARRANTIES, INDEMNIFICATION AND RETURNS. TRADEMARK, TRADE NAMES, PATENTS, KNOW-HOW. TERM AND TERMINATION. MISCELLANEOUS PROVISIONS.

What are the disadvantages of exclusive distribution?

If a company signs an exclusive distribution contract with one partner, they may miss out on potential sales from other markets or regions. Another potential downside of exclusivity is that it limits competition within the marketplace.

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