What is a Distribution Agreement?
A Distribution Agreement is a contract between a supplier of goods and a distributor of goods. The supplier may be a manufacturer, or may itself be a distributor reselling goods.
The key terms of this agreement include sign-on fee, duties, term, territory (exclusive or non-exclusive), payment terms, renewal, termination, marketing and promotion, minimum performance obligations as well as reporting.
Standard contract terms for liability, dispute resolution, termination, restraint, force majeure and intellectual property should also be included.
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Do I need a Distribution Agreement?
Yes, we recommend you always have a signed contract before you enter into a distribution agreement. Informal arrangements often lead to misunderstandings.
A contract will help both sides to understand the terms of your agreement in black and white.
Frequently Asked Questions
Without a clear agreement in writing, you are leaving yourself open to risk. It can be almost impossible to prove what you agreed on if you only have a verbal or ‘handshake’ agreement. More importantly, you are leaving your business vulnerable.
If there is ever a dispute about any terms of the deal, it’s always good to have a signed agreement which you can refer back to.
Generally it takes around 2 weeks to complete a drafting project from start to finish. If you have asked us to prepare more than one document, we’ll try to complete them at the same time to speed things up.
If something is urgent or you are working to a deadline, please let us know ahead of time and we will do our best to meet your timeline.