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Distribution Agreements



Fri 29 December 2023 Distribution Agreements

What is a Distribution Agreement?

Simply put, a distribution agreement is a contract between a supplier (manufacturer or brand owner) and a distributor. It outlines the terms under which the distributor will promote, sell, and distribute the supplier's products within a specific territory.

Key Terms to Consider with distribution agreements

Distributor or Agent relationship?

While distribution and agency agreements share some similarities, they have distinct legal implications.

The key difference is that a distributor buys the goods from the supplier and resells them at their own risk, taking ownership and responsibility for sales, marketing, and distribution. An agent, on the other hand, negotiates sales on behalf of the supplier without taking ownership of the goods. They act as an intermediary, receiving a commission on successful sales.

There are several advantages to having a distributor, especially for manufacturers and brands trying to reach a wider market :-

If you need solicitors to draft a distributor agreement, please do get in touch. We also review agreements and advise on legal disputes relating to distributor contracts.


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