How does a distribution agreement operate?

A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.

What is a distribution agreement?

A distribution deal (also known as distribution contract or distribution agreement) is a legal agreement between one party and another, to handle distribution of a product. There are various forms of distribution deals. There are exclusive and non-exclusive distribution agreements.

How do I write a distributorship agreement?

What to Include In A Distributorship Agreement?

Exclusive Distributor.
Terms And Conditions Of Sale.
Pricing.
Term Of The Agreement.
Marketing rights.
Trademark licensing.
The geographical territory covered by the agreement.
Performance.

What comes with a distribution deal?

Ideally, a distribution deal will include global distribution of your music, data & analytics to use for marketing and setting up tours, artist funding, and some other basic label services. For those who don’t like the major record label deal, distribution deals are tasteful.

What are the rights in a distribution agreement?

Distributor hereby acknowledges and agrees that its only rights with respect to the Product are the rights specifically outlined in this Agreement and that any and all other rights regarding the Product are specifically reserved to Supplier. Supplier will exercise its best efforts to fulfill Distributor’s orders for the Products.

What does distributor mean in exclusive distribution agreement?

Distributor shall promote the sale of Supplier Products in the Territory on its website. Notwithstanding the foregoing sentence, Distributor shall not actively advertise or actively solicit orders for Supplier Products outside of the Territory.

How is the purchase price listed in a distribution agreement?

Any inquiries received by Supplier about Products in the Territory shall be directed to Distributor. The purchase price for the Products (“Purchase Price”) shall be clearly listed on the invoice sent to Distributor per each Product shipment and shall be negotiated by the Parties prior to the first shipment to Distributor.

When to sign a license and distribution agreement?

Distributor shall have an option for a period of ****days from receipt of such notice to elect by written notice to the Company to have such Future Products or ****Products, as applicable, added as Products under this Agreement.

What do you need to know about a distributor agreement?

The Distributor wants to purchase the Products from the Supplier for resale in the geographic areas defined in Paragraph 2 (the “Territory”). The Supplier wants to appoint the Distributor as its [Exclusive/Non-Exclusive] distributor of the Products in the Territory.

1. The Products made and sold by the Supplier to the Distributor for distribution hereunder are as follows: (Add as many product names and numbers as required.) 2. The rights granted to the Distributor hereunder are granted for the following geographical areas: [Underlined Space for Territories. These could be states, countries, or “worldwide.\\ 3.

What are the warranties in an exclusive distribution agreement?

THE WARRANTIES SET FORTH IN THIS SECTION ARE INTENDED SOLELY FOR THE BENEFIT OF DISTRIBUTOR. ALL CLAIMS UNDER THIS AGREEMENT SHALL BE MADE BY DISTRIBUTOR AND MAY NOT BE MADE BY DISTRIBUTOR’S CUSTOMERS. Distributor’s Warranties. Distributor agrees, at its cost, to provide its customers with, at a minimum,…

When to enter into a written distribution agreement?

While in some circumstances, foregoing a written agreement may be to the advantage of one of the parties, in most cases, entering into a written distribution agreement is advisable and provides both parties with a road map to their obligations and rights in the relationship.