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Product Distribution Agreement

This Product Distribution Agreement template is for a supplier granting a distributor the right to sell their products within a specified territory. It outlines the terms and conditions of the distribution relationship, including responsibilities, pricing, and termination.

Updated 15d ago
distribution agreementsupplierdistributorproduct salessouthern Africalegal contract

COMPANY LETTERHEAD

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

PRODUCT DISTRIBUTION AGREEMENT

This PRODUCT DISTRIBUTION AGREEMENT ("Agreement") is made and entered into this {{day}} day of {{month}}, {{year}}, by and between:

{{supplier_company_name}}, a company duly incorporated under the laws of {{supplier_country}} with its principal place of business at {{supplier_address}} (hereinafter referred to as "Supplier");

AND

{{distributor_company_name}}, a company duly incorporated under the laws of {{distributor_country}} with its principal place of business at {{distributor_address}} (hereinafter referred to as "Distributor").

Collectively referred to as “Parties” and individually as “Party”.

1. APPOINTMENT OF DISTRIBUTOR

1.1. The Supplier hereby appoints the Distributor as its non-exclusive/exclusive (delete as applicable) distributor of the Products (as defined in Schedule A) within the Territory (as defined in Schedule B) during the Term of this Agreement.

1.2. The Distributor accepts such appointment and agrees to use its best efforts to promote, market, and sell the Products in the Territory in accordance with the terms and conditions of this Agreement.

2. TERRITORY

2.1. The Distributor is granted the right to distribute the Products solely within the geographical area defined in Schedule B hereto ("Territory").

2.2. The Supplier reserves the right to sell the Products directly or through other distributors outside the Territory.

3. PRODUCTS

3.1. The products covered by this Agreement ("Products") are fully described in Schedule A attached hereto.

3.2. The Supplier may, from time to time, modify the Products or introduce new products. Any such modifications or new products shall be subject to mutual agreement by the Parties and may require an amendment to Schedule A.

4. ORDERING AND DELIVERY

4.1. The Distributor shall place orders for the Products with the Supplier in writing, specifying the quantity, type of Products, and requested delivery date.

4.2. The Supplier shall use commercially reasonable efforts to fulfill accepted orders in a timely manner. Delivery terms shall be {{delivery_terms}} and risk of loss shall pass to the Distributor upon {{risk_of_loss_event}}.

4.3. The Distributor shall inspect all Products upon receipt and notify the Supplier in writing of any defects or discrepancies within {{inspection_period}} days of delivery.

5. PRICING AND PAYMENT

5.1. The pricing for the Products shall be as set forth in Schedule C, subject to change upon {{notice_period}} days' written notice from the Supplier.

5.2. The Distributor shall pay all invoices within {{payment_terms}} days of the invoice date. Late payments shall accrue interest at a rate of {{interest_rate}}% per annum or the maximum rate permitted by law, whichever is lower.

5.3. All prices are exclusive of any applicable taxes, duties, or other governmental charges, which shall be borne by the Distributor.

6. MARKETING AND SALES

6.1. The Distributor shall be responsible for all marketing, advertising, and sales efforts within the Territory, at its own expense.

6.2. The Distributor agrees to comply with all of the Supplier's branding guidelines and intellectual property policies.

6.3. The Distributor shall provide the Supplier with quarterly sales reports by the {{reporting_day}} day of the month following the end of each quarter.

7. TERM AND TERMINATION

7.1. This Agreement shall commence on the Effective Date and continue for an initial term of {{initial_term_years}} years, unless terminated earlier in accordance with the provisions herein.

7.2. Either Party may terminate this Agreement by providing {{termination_notice_period}} days' written notice to the other Party in the event of a material breach of this Agreement, which breach is not cured within {{cure_period}} days of receiving written notice thereof.

7.3. Upon termination, the Distributor shall cease all activities related to the distribution of the Products and shall return to the Supplier all unused Products, marketing materials, and confidential information.

8. CONFIDENTIALITY

8.1. Both Parties agree to keep confidential all non-public information disclosed by the other Party during the course of this Agreement, including but not limited to, business plans, customer lists, pricing information, and product specifications.

8.2. This obligation of confidentiality shall survive the termination of this Agreement for a period of {{confidentiality_period}} years.

9. GOVERNING LAW AND DISPUTE RESOLUTION

9.1. This Agreement shall be governed by and construed in accordance with the laws of {{governing_law_country}}.

9.2. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall be settled by arbitration in accordance with the rules of the {{arbitration_institution}}.

9.3. The place of arbitration shall be {{arbitration_city}}, {{arbitration_country}}.

10. ENTIRE AGREEMENT

This Agreement, including all attached Schedules, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.

SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

SUPPLIER:

_____________________________

Name: {{supplier_signatory_name}}

Title: {{supplier_signatory_title}}

Date: {{supplier_signature_date}}

DISTRIBUTOR:

_____________________________

Name: {{distributor_signatory_name}}

Title: {{distributor_signatory_title}}

Date: {{distributor_signature_date}}

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