Overview of an Introduction Agreement

What is an Introduction Agreement?

An Introduction Agreement is a contract that offers protection to a business that sources goods from a manufacturer on behalf of a client and is therefore acting as the “middleman” in the deal.

An Introduction Agreement can be between a client and a sourcing company, whereby the sourcing company agrees to source products up to a certain quality and the client is prohibited from contacting the manufacturer directly.

Alternatively, an Introduction Agreement can be between a sourcing company and a manufacturer, whereby the sourcing company requires the manufacturer to supply goods of acceptable quality and prohibits the manufacturer from contacting the client directly.

Key points included

  • Details of the manufacturer or end user;
  • Details of the payments;
  • Details of the product; and
  • The commencement date and duration of the agreement.

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