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ApplyThis Distribution Agreement (“Agreement”) is made on [Date], by and between:
• Manufacturer/Principal: [Company Name], [Address].
• Distributor: [Company Name], [Address].
Distributor is appointed as [exclusive / non-exclusive] distributor of [Products] in [Territory].
Define the geographic area or market sector in which Distributor may sell the Products.
• Promote and sell the Products within the Territory.
• Maintain adequate inventory levels.
• Provide after-sales service if required.
• Supply Products as ordered by Distributor.
• Provide marketing materials and reasonable support.
• Notify Distributor of any product changes or discontinuations.
• 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].
Distributor may use Manufacturer’s trademarks/logo solely to market the Products. Ownership of trademarks remains with Manufacturer.
• Initial term: [e.g., 1 year], renewed automatically unless notice given [X days] prior.
• Early termination for breach or insolvency of a Party.
Both Parties shall keep business, financial, and technical data confidential.
• Jurisdiction: [State/Country].
• Dispute resolution: [Arbitration or local courts].
Manufacturer: ____________________________ Date: __________
Name/Title: _____________________________
Distributor: _____________________________ Date: __________
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Frequently asked
A distribution agreement is a formal contract between a manufacturer or supplier and a distributor that sets out the terms for selling and distributing products. It defines how products will be marketed, where they can be sold, and the responsibilities of each party in the distribution process.
It provides legal clarity by detailing roles, sales targets, territories, payment terms, and operational responsibilities. A well-structured distribution agreement helps prevent disputes, protects both parties’ commercial interests, and ensures consistent and effective product distribution.
You should use a distribution agreement whenever products are sold through third-party distributors, whether on an exclusive or non-exclusive basis. This is especially important when expanding into new markets or regions to clearly define rights and obligations.
Include the list of products covered, defined sales territories, exclusivity arrangements, pricing structures, payment terms, marketing obligations, minimum order requirements, duration of the agreement, and termination clauses. Ensure the contract complies with applicable trade and competition laws.
Use our AI-powered contract generator to create a customized, legally sound distribution agreement in minutes — tailored to your products, markets, and business goals.
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