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A Distribution Agreement is a contract between a manufacturer or supplier of goods and a distributor. It also defines the terms under which the distributor may re-sell the products provided by the supplier.

A Distribution Agreement sets out the terms of the supply of goods, including delivery, the transfer of risk in and title to the goods, inspection requirements, and returns policy.

A Distribution Agreement may be either non-exclusive or exclusive. In an exclusive Distribution Agreement, the supplier appoints another party as the only distributor of its goods or products in a particular territory.

  • Product details;
  • Distribution exclusivity arrangements;
  • Geographical scope of the agreement;
  • Non-competition restrictions;
  • Trade mark use;
  • Order quantity, frequency, duration, and deadlines;
  • Payment arrangements;
  • Duration of the agreement and after-sale service;
  • Termination and compensation;
  • Import permits and taxation; and
  • Insurance.

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