Manufacturer's Right to Purchase Unsold Inventory After Distribution Agreement Termination Clause

Summary

This clause can be included in a distribution agreement to provide the manufacturer with the option to purchase the distributor's unsold inventory upon termination of the agreement, and to provide purchase terms and procedures for such purchase. The clause includes practical guidance and drafting notes. For an agreement template, see Distribution Agreement (Pro-Manufacturer) and Distribution Agreement (Pro-supplier, Short-form). For additional guidance on distribution agreements, see Drafting and Negotiating a Distribution Agreement, Distributor, Reseller, and Dealer Laws, and Distributor Resource Kit.