How do I write a distributorship agreement?
What should a distribution agreement include?
- basis of appointment (exclusive, sole or non-exclusive distributor)
- geographical area(s)
- duties of distributor and supplier.
- minimum purchase targets.
- price payable by distributor.
- ending the agreement.
How do you write an exclusive agreement?
Clearly state that both parties have elected to enter into the agreement based on their interest and free will. Then, outline the terms upon which both parties agree. The next section should cover which party will provide goods or services exclusively to the other.
What is an exclusive distributorship?
Exclusive distribution definition is a kind of distribution a manufacturer or supplier authorizes only one distributor to carry out within a definite region. Such a distributor becomes the sole authorized seller of the manufacturer’s specific products.
How do you ask for an exclusive distribution?
Respected Sir/ Madam, My name is __________ (name) and I am ________ (designation) of ________ (company name). I am writing this letter to request you for providing me/us with the distributorship of your company. Our company is dealing with ________ (mention) and holds a good market value and reputation.
What are exclusive distribution agreements?
Institution Definition Exclusive distribution : In an exclusive distribution agreement, the supplier agrees to sell its products to only one distributor for resale in a particular territory. At the same time, the distributor is usually limited in its active selling into other (exclusively allocated) territories.
Are exclusivity agreements legal?
Exclusive dealing or requirements contracts between manufacturers and retailers are common and are generally lawful.
What are exclusive agreements?
Exclusive agreements give vendors and their partners the chance to work with each other for a certain period of time without competitor interference. When you sign an exclusivity agreement, both of you work together in a specific market to sell a product or service.
What is exclusive distribution give an example?
Once the product has mass demand, then exclusive distribution becomes difficult and you enter different types of agreements with different distributors. Examples of companies which use exclusive distribution – Samsung, Apple, Gucci, Lamborghini, Mercedes, BMW etc.
What is exclusive distribution and example?
This is another way for a supplier to brand its product as exclusive. Businesses that carry luxury brands often utilize exclusive distribution as a method of enhancing their brand images. Other types of products that utilize exclusive distribution are automobiles, women’s apparel, major appliances and furniture.
Are exclusive distribution agreements legal?
What are the terms of an exclusive distributorship agreement?
Exclusive Distributorship Agreement Draft Page 7/13. The Distributor shall not restrict selling the Product(s) to its own customer base only. Distributor sales shall cover the customers of the Distributor’s competitors as well as new potential customers in the related field.
When does an exclusive distribution agreement expire?
Unless earlier terminated as provided in this Agreement, the term of this Agreement shall commence as of the Effective Date and shall automatically expire at the end of [Expiration after number of years] years following the Effective Date.
Is the distributor free to resell the product?
Distributor shall be free to resell the Products for such prices and upon such terms and conditions as Distributor may see fit in its sole discretion.
Can a supplier trademark be used by a distributor?
Distributor expressly agrees that no license to use Supplier (or any of its affiliates’ trademarks, trade names, service marks or logos (collectively, the “Supplier Trademarks”) is granted by this Agreement.
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