Distribution Agreement
This Distribution Agreement (“Agreement”) is made on [Date], by and between:
• Manufacturer/Principal: [Company Name], [Address].
• Distributor: [Company Name], [Address].
1. Appointment and Territory
1.1 Exclusive or Non-Exclusive
Distributor is appointed as [exclusive / non-exclusive] distributor of [Products] in [Territory].
1.2 Territory
Define the geographic area or market sector in which Distributor may sell the Products.
2. Distributor’s Obligations
• Promote and sell the Products within the Territory.
• Maintain adequate inventory levels.
• Provide after-sales service if required.
3. Manufacturer’s Obligations
• Supply Products as ordered by Distributor.
• Provide marketing materials and reasonable support.
• Notify Distributor of any product changes or discontinuations.
4. Prices and Payment
• Manufacturer sets the product prices or suggests retail prices.
• Payment terms: [e.g., Net 30 days, or letter of credit].
• Currency: [State currency of the transaction].
5. Marketing and Trademark Use
Distributor may use Manufacturer’s trademarks/logo solely to market the Products. Ownership of trademarks remains with Manufacturer.
6. Term and Termination
• Initial term: [e.g., 1 year], renewed automatically unless notice given [X days] prior.
• Early termination for breach or insolvency of a Party.
7. Confidentiality
Both Parties shall keep business, financial, and technical data confidential.
8. Governing Law and Disputes
• Jurisdiction: [State/Country].
• Dispute resolution: [Arbitration or local courts].
Signatures
Manufacturer: ____________________________ Date: __________
Name/Title: _____________________________
Distributor: _____________________________ Date: __________
Name/Title: _____________________________
Distribution Agreement
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Distribution Agreement
Distribution Agreement FAQ
What is a distribution agreement?
A distribution agreement establishes terms between manufacturers and distributors regarding product distribution, marketing, territory, and sales terms.
Why do you need a distribution agreement?
It clarifies roles, territories, sales targets, payment terms, and conditions to avoid disputes and ensure effective distribution.
When should I use a distribution agreement?
Use this agreement when distributing products through third-party distributors, ensuring clear obligations and rights for both parties.
How to write a distribution agreement?
Specify products, distribution territories, exclusivity terms, pricing, payment, responsibilities, minimum orders, contract duration, and termination clauses.
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