What is a distribution agreement?

An agreement between two parties whereby one party agrees to supply products to the other party to sell the products in the market in the particular geographical areas or in multiple regions and the same shall be mutually agreed between the parties to do so. It can be done at national or international market levels both by having the marketing rights in hand so that desired goals can be fulfilled. Here, the supplier of goods/products/assets can be the manufacturer itself or it can also be done by the distributor also where it is re-selling the goods/products/assets of another. It is a common prevailing practice which is done with an intention to promote the sale and make the product reachable and accessible to targeted consumers with a potential to attract more consumers & its market.

Why needed ?

Since they can be of several kinds like Exclusive distribution Agreement or Sole distribution Agreement or Selective Distribution Agreement or Non-exclusive Distributorship Agreement. Thus, the crafting of the agreement must be in accordance with the desired type of agreement opted by the parties subject to contract with regards to product distribution/resell clearly stating the nature of the agreement along-with roles and responsibilities expected to be fulfilled along with the schedules of order and payments in accordance with the supply of the product and performance.Incase, of any breach the risk can be settled off as per the agreed clauses in pursuant to the signed contract between the parties.

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