Approve Signatory Distributor Agreement Template For Free - Agreement Template

A distribution agreement is a legal contract between your company and distributors, defining the guidelines to market and sell your products. A distribution agreement grants a distributor the rights to market and sell your company products.

An exclusive distribution arrangement is one whereby a supplier agrees to sell the contract products only to the distributor within a certain defined territory, and agrees not to appoint other distributors or sell the products directly to other customers within the territory.

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.

The agreement is usually between a manufacturer or vendor and a distributor but, in some cases, may involve two distributors or a distributor and some other channel entity.

Exclusive distribution agreement Sometimes, the distributor is the only distributor of the supplier's product within a specific geographical area. In other exclusive agreements, the distributor has the sole authority to sell the product to certain customers, meaning no other distributor can sell to those customers.

The imposition of exclusive agreements by a dominant enterprise may amount to a per se violation under Section 4 of the Act, in violation of Section 4(2)(a)(ii) and Section 4(2)(c) read with Section 4(1) of the Act, provided the exclusivity is not objectively justified.

Parts of a Distribution Agreement 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.

An exclusive distribution agreement can manifest as a territorial restriction, where the supplier agrees to sell his products only to one distributor for resale in a particular territory, or as a customer restriction, where the supplier is restricted to sales only to a particular group of customers.

Isn't that illegal? A: Exclusive distribution arrangements like this usually are permitted. Although the retailer is prevented from selling competing flat-panel display monitors, this may be the type of product that requires a certain level of knowledge and service to sell.

5.01 Distributor agrees to actively promote the sale of the Product through direct sales and to maintain a mutually agreed upon inventory of the Product and spare parts for timely delivery, sales demonstration, training and support. Obligations of Distributor.