Maine Checklist for a Distribution Agreement
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How to fill out Checklist For A Distribution Agreement?
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FAQ
A Distribution Agreement is a contract in which the supplier grants the distributor the right to distribute the supplier's good or services to customers in a distinct territory.
A distribution agreement usually involves a distributor who buys products from a manufacturer or other seller, takes title to those goods, and resells them to its customers.
Distribution agreements define the terms and conditions under which a distributor may sell products provided by a supplier. Such an agreement may be for a limited term, and be further restricted by territory and distribution channel.
An exclusive distribution contract means only one distributor is appointed in a specific marketplace by a supplier. As part of the agreement, the supplier promises not to allow the distribution of the products by any other party in the given market area.
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.More items...
Six Rules for Negotiating a Better Distribution AgreementBalance. Balance in a distribution agreement ensures that neither party holds unfair power over the other.Due Diligence.Annual Termination and Semiautomatic Renewal.Comparison with Proven Industry Agreements.Four Eyes versus Two Eyes.Cause and Convenience.
Parts of a Distribution AgreementNames 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.More items...
Best Practices to Protect Your MerchandiseUnderstand Your Customer Base.Do Your Homework.Protect Yourself in Writing.Avoid Inconsistent Pricing.Manage Your Route to Market.Monitor Case Marking.Consider Distinct Package Sizing.Examine All Purchase Orders.More items...?
Products: The agreement should specify what products, product lines, or brands are included under the agreement. The agreement should also address whether and to what extent any new brands developed or acquired by the supplier would be included, or specifically, excluded from the agreement.