Illinois Exclusive Distributorship Agreement
Description
How to fill out Exclusive Distributorship Agreement?
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FAQ
The primary difference between exclusive and non-exclusive distribution lies in the rights granted to the distributor. In an exclusive arrangement, one distributor has the sole rights to sell the product in a particular area. In contrast, a non-exclusive distributor can compete with other distributors selling the same product. Understanding this difference is crucial when drafting an Illinois Exclusive Distributorship Agreement to ensure all parties are aware of their limits and opportunities.
Exclusive distribution is a distribution strategy whereby a producer sells its products or services in only one retail outlet in a specific geographical area.
Under an exclusive distribution agreement, a business agrees to use only one distributor in a territory. The supplier is free to make agreements with other distributors, so long as those distributors are restricted to their own territory.
In simple terms, an exclusive dealing contract prevents a distributor from selling the products of a different manufacturer, and a requirements contract prevents a manufacturer from buying inputs from a different supplier.
Such a distributor becomes the sole authorized seller of the manufacturer's specific products. An example of exclusive distribution is Apple solely authorizing AT&T to be the distributor of the iPhone to end users.
An exclusive distribution agreement is an agreement between a distributor company and a supplier company that grants the distributor exclusive rights to sell the suppliers goods. This means that the supplier agrees to now allow another distributor to sell its goods for the duration of the agreement.
Exclusive distribution definition is a kind of distribution a manufacturer or supplier authorizes only one distributor to carry out within a definite region. Such a distributor becomes the sole authorized seller of the manufacturer's specific products.
Examples of companies which use exclusive distribution Samsung, Apple, Gucci, Lamborghini, Mercedes, BMW etc.
Sole Distributor: A sole distributor is the only distributor of the supplier's product in a defined territory, where as it is to be noted that sole distributor is to be separately understood from exclusive distributor. An exclusive distributor is the only one to sell the supplier's product in a defined territory.
Exclusive rights prevent the supplier actively seeking sale in the distributors' territory and from appointing other distributors in the territory. Sole rights prevent the supplier from appointing another distributor in the territory, but will not prevent the supplier seeking sales there.
