A Distribution Agreement works to formalize the relationship between a manufacturer or supplier (Supplier) and a distributor or reseller (Distributor) to distribute and sell specific products within a designated territory or market. This enables both parties to gain from their mutual strength and work together effectively and harmoniously to achieve their respective business objectives and mutual success.
A Distribution Agreement shall :
- Clearly define the roles, obligations, and expectations of each party, including product distribution, marketing, promotion, and support activities.
- Specify the terms related to pricing, payment, ordering, delivery, inventory management, and compliance with legal and regulatory requirements.
- Outline the conditions and procedures for contract termination, as well as mechanisms for resolving disputes, breaches, or non-compliance issues.
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