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A distributorship agreement is a document that creates a relationship of distributorship between a manufacturer and a distributor. The agreement confers on the distributor the right to supply the manufacturer's goods within a region or regions.
A distributor agreement, also known as a distribution agreement, is a contract between channel partners that stipulates the responsibilities of both parties.
This is a type of distribution in which only one distributor is authorized to sell a specific product within a particular territory. The legality of an exclusive distribution agreement can vary depending on the specifics of the case.
Signing a distribution agreement with a local distributor in the United States of America is one of the most common ways for foreign companies to enter the American market. It is also a great way to test whether a product can be marketed in the United States, without taking too many risks.
What to Include In A Distributorship Agreement?Exclusive Distributor.Terms And Conditions Of Sale.Pricing.Term Of The Agreement.Marketing rights.Trademark licensing.The geographical territory covered by the agreement.Performance.More items...