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In this video, the narrator outlines key elements to consider when entering a distribution agreement. First, it’s essential to have a clear understanding of the products involved, specifying what is included in the agreement to avoid future disputes. This is particularly crucial for exclusive rights, such as exclusive distribution in a specific region, like Australia. The agreement should explicitly state which goods the distributor has the exclusive right to distribute, ensuring both parties are clear on the terms and preventing any potential misunderstandings later on.