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Distribution Agreement
Clarify product distribution terms and responsibilities with this easy-to-customize Distribution Agreement Template.
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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: _____________________________
Details
Learn more about
Distribution Agreement
DISTRIBUTION AGREEMENT FAQ
What is a distribution agreement?
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.
Why do you need a distribution agreement?
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.
When should I use a distribution agreement?
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.
How to write a distribution agreement?
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.
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