A sale of goods contract is used when one party (the seller) agrees to transfer ownership of tangible goods to another party (the buyer) in exchange for payment. It is used when a company is selling goods to another party and wants to establish the terms and conditions of the sale, such as the quantity of goods, the price, and any warranties or guarantees.
A distribution agreement, on the other hand, is used when a company wants to appoint a distributor to sell its products in a particular region or market. It outlines the terms and conditions of the relationship between the company and the distributor, such as the rights and obligations of each party, the territory covered by the distribution agreement, and the payment terms.
The main difference between a sale of goods contract and a distribution agreement is the relationship between the parties involved. In a sale of goods contract, there are only two parties involved—the buyer and the seller. In a distribution agreement, there are three parties involved—the company that produces the goods, the distributor that sells the goods, and the end customer that purchases the goods from the distributor.
Another key difference is the level of control that the seller has over the distribution of its products. In a sale of goods contract, the seller has control over the distribution and sale of its products. In a distribution agreement, the seller typically has less control over the distribution and sale of its products, as the distributor is responsible for selling the products to end customers.
Overall, a sale of goods contract is used when a company wants to sell tangible goods to another party, while a distribution agreement is used when a company wants to appoint a distributor to sell its products in a particular region or market.
