A Distribution Agreement is a contract between a manufacturer or supplier of goods and a distributor. It also defines the terms under which the distributor may re-sell the products provided by the supplier.
A Distribution Agreement sets out the terms of the supply of goods, including delivery, the transfer of risk in and title to the goods, inspection requirements, and returns policy.
A Distribution Agreement may be either non-exclusive or exclusive. In an exclusive Distribution Agreement, the supplier appoints another party as the only distributor of its goods or products in a particular territory.
- Product details;
- Distribution exclusivity arrangements;
- Geographical scope of the agreement;
- Non-competition restrictions;
- Trade mark use;
- Order quantity, frequency, duration, and deadlines;
- Payment arrangements;
- Duration of the agreement and after-sale service;
- Termination and compensation;
- Import permits and taxation; and