A distribution agreement is a legal contract between your company and distributors, defining the guidelines to market and sell your products.
A distribution agreement grants a distributor the rights to market and sell your company products. It includes contract tenure, sales territories, the maximum retail price, margins for the distributor and distribution procedures. The distributor can also provide a range of post-sale services such as technical support and repairs.
Under this arrangement, the distributor has to comply with specific terms and legal obligations, and is often responsible for inventory maintenance, marketing, warehousing, and transportation of the product. The distributor also undertakes the risks associated with the sale of products including loss or theft, damage, cancellation and currency variation for international dealings.
A distribution agreements can be categorized as:
Having a comprehensive set of all distribution agreements enables your company to:
Having a comprehensive set of all distribution agreements is important for an event tomorrow, as it helps potential investors to: