A product distribution agreement is a contract between two parties.
One company that supplies and manufactures and the other companies sales and market their product. This contract is also called a distributor agreement.
Distributor or wholesaler ready to buy a product and sell them to clients. Another company has a geographical network and source the product to supply and sell.
Many businesses are using distribution agreements for various purposes.
Key Terms Include in Product Distribution Agreement:
1. Exclusive distributor
2. Terms and condition
3. Pricing
4. Agreement Terms
5. Trademarks
6. marketing license
7. Geographical territory
8. Performace
9. Termination
A huge percentage of selected distributors decide geographical boundaries. They have usually purchased products from the company.
One of the important details to include that is a geographical area within the distributor may be allowed to sell the goods of the manufacturer.
The conditions of the termination should be details in the agreement. The volume of sales to be achieved by the seller or distributor should be decided in the advance. If they are not able to keep up the target, the agreement may be allowed to be terminated.
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