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In this tutorial, the narrator discusses essential elements to include in a distribution agreement. First, it's crucial to have a clear understanding of the products involved; the agreement should specify which products are being distributed to avoid future disputes. This clarity is especially important for exclusivity rights, such as exclusive distribution in a specific region (e.g., Australia). By clearly outlining the rights to particular goods, both parties can prevent misunderstandings and disputes in the future regarding the scope of the agreement.