Distribution Agreement
A Distribution Agreement is a contract between a supplier and a distributor that outlines the terms and conditions under which the distributor is authorised to market, sell, and distribute the supplier’s products within a specified territory.
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Distribution Agreement: Authorize a Distributor to Sell Your Products in Specific Territories
A Distribution Agreement establishes the relationship between a supplier of products and a distributor who will market and sell those products within defined geographical areas. This document creates clear rights and responsibilities for both parties while protecting the supplier's brand and the distributor's territory.
Your Distribution Agreement made in Bind will include:
Party Information
Identifies the supplier and distributor with their full legal names, business addresses, and registration information. Establishes who is providing the products and who is authorized to distribute them in the specified territories.
Recitals
Explains the nature of the supplier's business, the products being distributed, and the distributor's desire to sell these products in particular territories. Sets the context for the entire agreement.
Appointment of Distributor
Grants the distributor the right to sell and market the products in specific geographical areas, defining whether this right is exclusive or non-exclusive. Clarifies exactly where the distributor can operate and whether the supplier can appoint other distributors in those areas.
Distributor's Obligations
Outlines what the distributor must do, including marketing requirements, minimum sales targets, inventory maintenance, and compliance with the supplier's branding guidelines. Ensures the distributor actively promotes and properly represents the products.
Supplier's Obligations
Details what the supplier must provide, including product supply, pricing, technical support, training, and marketing materials. Establishes the supplier's commitment to support the distributor's sales efforts.
Prices and Payment Terms
Specifies product pricing, payment schedules, acceptable payment methods, and currency. Creates clarity around financial expectations and procedures for both parties.
Term and Termination
Defines how long the agreement will last and the circumstances under which either party can end the relationship, including notice periods for both routine termination and termination due to breaches.
Confidentiality
Protects sensitive business information shared between the parties during the course of their relationship. Prevents misuse of proprietary information even after the agreement ends.
Intellectual Property
Addresses how the distributor can use the supplier's trademarks, logos, and other intellectual property when marketing the products. Confirms that ownership of all intellectual property remains with the supplier.
Dispute Resolution
Provides a framework for resolving disagreements that may arise during the business relationship, typically through negotiation first and then potentially through arbitration or litigation.
Governing Law and Jurisdiction
Specifies the laws that govern the agreement and which courts have jurisdiction to resolve disputes. When creating your document in Bind, you can select your preferred jurisdiction to ensure the agreement complies with local laws.
Creating a Distribution Agreement through Bind helps protect your brand while expanding your market reach through authorized distributors. This comprehensive document clearly defines territories, sales expectations, and support obligations to create a successful business relationship. You can sign the completed agreement electronically, making it convenient to formalize your distribution network quickly and securely.
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