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Distribution Agreement for Distributor

Key points and template

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Key Points Included in This Distribution Agreement for Distributor

Details of the distributed products
Exclusivity and non-competition arrangements
Conditions of purchase by the distributor, including price, payment terms, and warranty
Use of the supplier’s trademarks
Term and termination, including whether compensation is due for the acquired clients

Use This Distribution Agreement for Distributor if …

… you are an independent distributor with an established distribution network in a particular territory

… you have been appointed by the manufacturer or supplier of products to promote and sell them

What is a Distribution Agreement for Distributor?

Under a distribution agreement, a manufacturer or supplier of goods appoints an independent distributor to promote and sell its products in a particular geographical area.

The distributor undertakes to purchase the supplier’s products and re-sell them to its clients in this area, in its own name and for its own account.

Although the law is unclear on this subject, there is increasing support in doctrine and case law for the principle of financial compensation in favor of the distributor for the customers it has acquired during the term of the agreement. It is therefore necessary to draft the provisions concerning the settlement of contractual relations carefully, to avoid any unpleasant surprises when the agreement ends.