A distribution agreement is a legal contract between a supplier or manufacturer of goods or services and a distributor who agrees to distribute or sell the supplier’s goods or services. The distribution agreement sets out the terms and conditions of the arrangement between the parties, including the rights and obligations of each party, the pricing and payment terms, the scope and duration of the distribution relationship, and any other relevant terms that govern the distribution of the goods or services.
The distribution agreement may include provisions related to exclusive or non-exclusive distribution rights, territorial restrictions, minimum purchase requirements, marketing and advertising obligations, intellectual property rights, warranties and disclaimers, and termination provisions.
Distribution agreements are commonly used in a variety of industries, such as the consumer goods industry, the software industry, and the pharmaceutical industry, among others. They are an important tool for suppliers and manufacturers to expand their market reach by leveraging the distribution networks and expertise of third-party distributors.