We identified your competent distributor, but it does not stop there. A well-written agreement is very important in the beginning of the transactions between the manufacturer/supplier and the distributor. It will clearly put into writing all the agreed clauses between the two parties to avoid any conflicts in the future.

A distribution agreement is a contract or legal agreement between a manufacturer/supplier of a certain product/s and another company that is responsible for market and sell the products. The main content of the agreement is that the distributor agrees that they will purchase the products from the manufacturer/supplier and sell them to the clients within certain geographical areas. But there are major clauses that are applicable to be considered such as:

• Exclusive or Non-exclusive
• Territory
• Term/length of the Contract
• Price and Payment Terms
• Warranties
• Target/Sales Objective
• Distribution Network
• Sub-Distributors
• Support
• Marketing/ Advertising Activities
• Obligations of the Distributor
• Sales outside the Territory
• Commitment not to Compete/ Non-Compete
• Early contract termination
• Compensation for termination of the Contract
• Intellectual Property
• Arbitration

Our experienced team will draft the contract as per the agreement of the terms and conditions of the manufacturer/supplier and distributor. We will advise as well on the best options of each clause for the benefit of both parties.