What is in a distribution agreement?
A distribution agreement grants a distributor the rights to market and sell your company products. It includes contract tenure, sales territories, the maximum retail price, margins for the distributor and distribution procedures.
What should be included in a distribution agreement?
The basic elements of a distribution agreement include the term (time period for which the contract is in effect), terms and conditions of supply and the sales territories covered by the agreement (regions within the U.S. and/or international markets).
What should be included in a distributor agreement?
Typical elements of a distributor agreement The basic elements of a distribution agreement include the term (time period for which the contract is in effect), terms and conditions of supply and the sales territories covered by the agreement (regions within the U.S. and/or international markets).
How do you negotiate a distribution agreement?
Six Rules for Negotiating a Better Distribution Agreement Balance. Balance in a distribution agreement ensures that neither party holds unfair power over the other. Due Diligence. Annual Termination and Semiautomatic Renewal. Comparison with Proven Industry Agreements. Four Eyes versus Two Eyes. Cause and Convenience.
Do I need a distribution agreement?
Whether youre a manufacturer or a distributor, a Distribution Agreement is important to make sure the terms of your arrangement are clear to both parties. Manufacturers usually engage distributors to sell and market their products at the wholesale or retail level.
What is the difference between a dealer agreement and a distributor agreement?
Distributor agreements typically involve exclusivity, non-compete clauses, minimum sales requirements, royalty provisions (based on sales), and after-sale responsibilities, while dealer agreements discuss product quantities, warranties, price, and dates of delivery.
What is a distributor 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.
How do you write a distribution agreement?
Below is a basic distribution agreement checklist to help you get started: Names and addresses of both parties. Sale terms and conditions. Contract effective dates. Marketing and intellectual property rights. Defects and returns provisions. Severance terms. Returned goods credits and costs. Exclusivity from competing products.
Do I need a distribution agreement?
Whether youre a manufacturer or a distributor, a Distribution Agreement is important to make sure the terms of your arrangement are clear to both parties. Manufacturers usually engage distributors to sell and market their products at the wholesale or retail level.
What is the difference between a dealer agreement and a distributor agreement?
Key Differences Between Distributors and Dealers Distributor agreements typically involve exclusivity, non-compete clauses, minimum sales requirements, royalty provisions (based on sales), and after-sale responsibilities, while dealer agreements discuss product quantities, warranties, price, and dates of delivery.