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How To Write A Distribution Agreement

This document provides a template for drafting a Distribution Agreement, outlining the terms and conditions between a supplier and a distributor for the sale of goods within a specified territory. It is to be used when establishing a formal distribution relationship.

Updated 15d ago
distribution agreementsupplierdistributorsalescontractSMESouthern Africa

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

DISTRIBUTION AGREEMENT

This Distribution Agreement ("Agreement") is made and entered into as of {{date_of_agreement}}, by and between:

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

AND

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

Collectively, the Supplier and Distributor shall be referred to as the "Parties" and individually as a "Party".

1. Appointment of Distributor

1.1. The Supplier hereby appoints the Distributor as its non-exclusive/exclusive (delete as applicable) distributor for the sale and distribution of the Products (as defined in Schedule A) within the Territory (as defined in Schedule B).

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. Term and Termination

2.1. This Agreement shall commence on {{effective_date}} and shall continue for an initial term of {{initial_term_years}} years, unless terminated earlier in accordance with the provisions hereof.

2.2. Either Party may terminate this Agreement by giving {{notice_period}} days' written notice to the other Party in the event of a material breach of any provision of this Agreement by the other Party, which breach is not remedied within {{cure_period}} days of receipt of written notice requesting such remedy.

2.3. Either Party may terminate this Agreement immediately upon written notice to the other Party if the other Party becomes insolvent, makes any assignment for the benefit of creditors, or if a receiver or administrator is appointed for the other Party.

3. Pricing and Payment

3.1. The Distributor shall purchase Products from the Supplier at the prices set forth in the Supplier's then-current price list, which may be updated by the Supplier from time to time upon {{notice_period_price_change}} days' written notice to the Distributor.

3.2. Payment terms shall be {{payment_terms}} days from the date of invoice. Overdue payments shall accrue interest at a rate of {{interest_rate}}% per annum/month (delete as applicable).

4. Marketing and Sales

4.1. The Distributor shall develop and implement a marketing and sales plan for the Products in the Territory, subject to the Supplier's approval.

4.2. The Distributor shall be responsible for all costs and expenses associated with its marketing and sales activities.

5. Intellectual Property

5.1. The Distributor acknowledges that all intellectual property rights related to the Products, including trademarks, copyrights, and patents, are and shall remain the sole property of the Supplier.

5.2. The Distributor shall not use the Supplier's intellectual property in any manner not expressly authorized by this Agreement.

6. Confidentiality

6.1. Both Parties agree to keep confidential all non-public information received from the other Party in connection with this Agreement.

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

7. Governing Law and Dispute Resolution

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

7.2. Any disputes arising out of or in connection with this Agreement shall be resolved through negotiation in good faith. If the Parties are unable to reach a resolution, the dispute shall be submitted to arbitration in {{arbitration_location}} in accordance with the rules of {{arbitration_institution}}.

8. Entire Agreement

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

9. Notices

Any notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above.

Signature Block

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

_____________________________

By: {{supplier_authorized_signatory_name}}

Title: {{supplier_authorized_signatory_title}}

For: {{supplier_company_name}}

_____________________________

By: {{distributor_authorized_signatory_name}}

Title: {{distributor_authorized_signatory_title}}

For: {{distributor_company_name}}

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