Distribution Agreement


This form Distribution Agreement (Pro-Manufacturer) an be used when a manufacturer or supplier appoints a distributor to resell certain products in a designated market. This form includes practical guidance, drafting notes, and alternate clauses.This form has been drafted with terms that favor the manufacturer of goods. A distribution agreement will establish the terms and conditions under which a party (the distributor) will promote and resell the goods of another party (the manufacturer or supplier). The distributor is an independent entity that will control its business operations, and usually makes its profit from the resale of the manufacturer’s goods to third parties. A distributor differs from a sales agent or a consignee in that the distributor acquires both possession of and title to the goods, while a consignee takes only possession but not title, and a sales agent has neither possession nor title. As a distribution arrangement will often be a critical part of both parties’ ...