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The narrator outlines key elements to consider before entering into a distribution agreement. First, it's crucial to have a clear understanding of the products involved. The agreement should specify which products the distributor is authorized to distribute, ensuring clarity on rights and responsibilities. This clarity is especially important if exclusive distribution rights are granted, as it prevents future disputes regarding the goods covered under the agreement. By clearly defining the products and rights, both parties can avoid misunderstandings about the terms of the distribution.
