Distribution agreements can be a way for a manufacturer or supplier to make inroads into profitable new markets and territories. Under their terms, one party, the supplier, will sell goods to another party, the distributor, with the goods then being resold to a third party, usually the consumer.
Both supplier and distributor can benefit from a distribution agreement: the supplier because it receives income from the distributor without having to expend capital on establishing a market presence, and the distributor because it is able to sell an established or successful product to a new market.
However, for it to be successful and non-contentious it is critical that any legal agreement for distribution addresses a number a key points. These may include:
The thriving commercial legal services team at George Ide LLP, can advise businesses on a full range of legal matters, including those that relate to distribution agreements, agency agreements and supplier agreements.
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