What To Include In A Distribution Agreement

In the meantime with other trade agreements, it is imperative that an international distribution agreement clearly defines the responsibilities of each party. The supplier and distributor must have a clear idea of their obligations to be fulfilled in accordance with the terms of the transaction. Sometimes the distribution agreement specifies the responsibilities of the distributor either in terms of objectives or quotas, or in terms of required purchases. There are pros and cons to saying that anyway. In our view, the key lies in manufacturers and retailers setting a mutually pleasing “goal.” This makes it more likely that the goal will be achieved as it ensures mutual commitment and interest. One. The key is that the manufacturer wants to have as much control as possible over the duration of the distribution partnership and wants to have a way out without actually “ending” the distribution partnership. Carefully address the points on both sides of the agreement as you go through the items in the homework and duty checklist. Make sure the agreement fulfills the company`s duty to deliver the agreed products in addition to the information, training, and technical support the dealer needs. .

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