A distribution agreement is used when a manufacturer or supplier needs to appoint a distributor to sell and distribute their products. This type of agreement is typically used when the manufacturer or supplier does not have the resources or desire to handle distribution and sales on their own.
The distribution agreement outlines the terms and conditions of the relationship between the manufacturer or supplier and the distributor, including the products to be sold, the territory in which the distributor can sell the products, and the payment terms. The agreement may also include provisions for exclusivity, minimum sales targets, and the responsibilities of both parties for marketing and promotion.
A distribution agreement is used to establish a legal relationship between the manufacturer or supplier and the distributor and to ensure that both parties understand and agree to the terms and conditions of the arrangement.
