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In its most basic form, a distribution agreement is a legally binding agreement between a supplier and a distributor of products. An informal distribution agreement between the supplier or manufacturer and the distributor is also possible.
The Distributor Agreement should clearly set forth the duties, responsibilities and expectations of each of the parties. The Distributor Agreement should also set forth provisions related to limitations and protections that each party can understand.
A master distributor is a wholesale distributor who sells product to resellers. They have direct relationships with brand owners who recognize them as exclusive distributors of their product.
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...
What is a Distribution Agreement? Distribution agreements, also called wholesale distribution agreements, are contracts between a distributor and manufacturer. They allow the distributor to sell, market, and profit from the sales of a manufacturer's or wholesaler's product in bulk.
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.
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...
Typical elements of a distributor agreementterms and conditions of sale;term for which the contract is in effect;marketing rights;trademark licensing;geographical territory covered by the agreement;performance;reporting; and.circumstances under which the contract may be terminated.
A master distributor agreement is a legal agreement that allows a manufacturer to enter into a contract with another party, known as a distributor, who will sell and market the manufacturer's goods on their behalf.
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.