Sole Distribution Agreement Sample

Apr 12 2021 • Posted in Uncategorized

A clearly written exclusive distribution agreement allows both parties to terminate the contract with an appropriate termination – for example 60 or 90 days – or in specific clearly defined circumstances. These provisions recognize that a company`s objectives on the first day may be significantly different from those of the first day of the seventh year. The post-termination clauses, which suggest how the relationship may expire, lay the groundwork for a new participation in the future. Well-written non-competition and confidentiality provisions serve a similar purpose. g. The obligations of the recipient party under this section 6 remain in the event of termination or non-renewal of that contract for a period of [number of years] of years. In order to avoid any doubt, the distributor`s client and negotiator lists are considered protected information under this agreement. A distribution agreement is a contractual agreement in which a distributor — also known as a distributor — agrees to market the products he buys from a supplier or manufacturer. The distribution company serves as both distributor and seller of the manufacturer`s products. An exclusive distribution agreement is an agreement in which the producer sells exclusively to a distributor.

Exclusive distribution agreements are used in many sectors, including media and entertainment, medical care, electronics and clothing. In the event of termination of this agreement for any reason, the following provisions apply: (a) the supplier has the right to immediately appoint another distributor to serve existing customers and to continue sales efforts in the territory; (b) the supplier may continue to fulfill the distributor`s orders that were accepted by the supplier prior to the termination of this contract pursuant to the terms of this agreement; (c) all balances owed by the distributor to the supplier are due immediately and must be paid to the supplier; (d) Both parties refrain at any time from any conduct that is inconsistent with the nature of their business relationship or that could cause confusion; (e) all rights granted to the distributor under this contract are extinguished and, if necessary, reset to the supplier; and (f) The supplier has the right, at its sole discretion, but is under no obligation (if required by law) to verify and repurchase all or quantity of the supplier`s products (including demonstration products and parts for the service of supplier products), which are then owned or ordered, to a lesser extent (i) of the initial price paid by the distributor for these supplier products. , or (ii) at the current price at the distributor and at (i) or (ii), net of any cost of filling or remediation. The relationship between a manufacturer or supplier and its distributor is essential to the success of both companies. Each party to this agreement relies heavily on the other, but rarely do such relations remain unchanged, even if they work well. If it is an exclusive agreement, the exclusive distributor agreement should be carefully developed to meet the needs of both parties while allowing sufficient flexibility to accommodate the inevitable changes in objectives and priorities. This agreement and the attached statement (which is expressly included in this reference) contain the full and comprehensive agreement between the parties regarding the purpose of this agreement.

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