Letter of Intent (Distribution Agreement)

Summary

This precedent is a Letter of Intent ("LOI") that may be used to commence negotiations between a manufacturer or supplier and a distributor for the distribution of the manufacturer/supplier's products in a specified territory. This precedent includes practical guidance, drafting notes and an alternate clause. 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. This LOI is jurisdiction and industry neutral. As such, counsel should consult applicable provincial and industry laws prior to finalization. This LOI is also intended for use solely by Canadian parties engaging in business in Canada. International laws and related concerns are beyond the scope of this precedent. For sample ...