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A manufacturing and distribution agreement is a legally binding contract between a supplier or manufacturer and distributor of a product. The agreement sets forth certain roles, duties, and obligations which each party must uphold as long as the agreement is in effect.
Types of distribution agreement Exclusive Distribution Agreements. Sole Distribution Agreements. Non-Exclusive Distribution Agreements. What is 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.
In summary, a distribution agreement is a type of contract between a distributor and a supplier. Often, the supplier is also a manufacturer. The agreement between the two parties should outline key terms as part of your contract. This is important for running a successful business for a number of reasons.
Specifying the product and its delivery dates. Specifying whether payment is commission-based or whether there is another type of fee arrangement. Describing the relationship between the parties, such as the distributor being an independent contractor and not an employee of the supplier.
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.
What is a Contract Manufacturing Agreement? A contract manufacturing agreement is a legal document that outlines the terms and conditions of a company's relationship with contract manufacturer. Contract manufacturing is a form of outsouricng used by businesses to produce products to sell to their customers.
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).