A distribution agreement is a contract between two parties in which one party (the “supplier”) agrees to allow the other party (the “distributor”) to distribute the products manufactured by the supplier. It may be used for many different types of products.

A distribution agreement sets out the terms and conditions upon which the distributor agrees to distribute the products. This may include prohibiting the distributor from distributing other similar products, it may appoint the distributor with exclusive distribution rights, or it may specify multiple distributors in circumstances where the agreement is non-exclusive.

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You will need the following information to generate your document:

  • Name of the supplier and distributor
  • Address of the supplier and distributor
  • Email of the supplier and distributor
  • Phone number of the supplier and distributor
  • Start and end date of the distribution arrangement
  • Price of each item / measurement of the goods

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Contents of the template

LegalVision’s LVDox™ Free Distribution Agreement sets out:

  • the non-exclusive nature of the relationship;
  • restrictions to the arrangements, such as distribution area and products;
  • business processes (such as ordering, invoicing and delivery); and
  • the basic rights, responsibilities and obligations of the parties.

If your distribution matters are more complex, then it’s important that you have a lawyer assist you to draft the following clauses:

  • a choice between having a non-exclusive of exclusive distribution agreement;
  • a sophisticated dispute resolution clause;
  • a sales target clause and termination rights if sales targets are not met;
  • a non-compete clause;
  • an insurance clause;
  • a confidentiality clause; and
  • additional provisions relating to the rights, responsibilities and obligations of the parties, particularly if an agreement has been reached on particular issues.
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