Distribution Agreement – standard version

What’s a Distribution Agreement and when should you use it?

A Distribution Agreement is used for the appointment of a distributor for the distribution and sale of your goods, generally within a defined territory.

It is a contract between two parties in which one party (the “supplier”) agrees to allow the other party (the “distributor”) to distribute the products manufactured by the supplier.

It may be used for many different types of products.

Our template is a basic agreement that sets out the terms and conditions upon which the distributor agrees to distribute the products.

It is drafted to protect the interests of the supplier of the goods, including intellectual property interests, and is intended to set out the commercial terms of the arrangement (e.g. territory, exclusivity, description of goods and corresponding price.)

It is a full version, protecting the supplier’s products and business and providing an excellent framework for this important relationship.

This distribution agreement is for any business selling goods of any type but does not cover export provisions.

Whether you are the distributor or the merchant, there will be many areas where you would like the other of you to do things your way.

As a result, there will be a lot to negotiate.

By setting everything down in a document like this before you start to talk, you have a head start.

The agenda is yours.

This is a very comprehensive document, but as always with PLUGGED documents, you can adapt it to suit most distribution arrangements relating to the supply of goods.

What else might you need?

Our guide to agency and distribution will help you work out whether distribution is the right approach for you.

There are others that you could consider if you want to expand your business in this way, such as agency and franchising.

You could even consider licensing and joint ventures.

For an introduction to other options take a look at our guide to alternative business models