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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.