Terms And Conditions Distribution Agreement
However, overall, a written agreement will be necessary and appropriate for both parties. While we certainly do not insist as much on representing a distributor as if we did represent a manufacturer, this should be an essential part of any distribution agreement. This agreement confers an advantage on the distributor by ensuring that there are no competitors in the indicated market. The supplier will often use this type of agreement as an argument to conclude a transaction. They differ, however, in the sense that the manufacturer wishes to retain the absolute right to redirect its distribution or to make other changes to the distribution order it wishes. He may want to replace the distributors at a later date, or he may want to eliminate all the distributors and sell them directly. He may even want to leave the business in a particular sector. The manufacturer will also want to protect its interest in its own brand, so that the distributor has no right to it. There are many different business requirements that a manufacturer/supplier may require from a reseller they wish to appoint, which are maintained throughout the term of the agreement. For example – and the list is not exhaustive – the granting of administrative authorisations for the marketing of products on the relevant market; the establishment of a marketing system for products; advertising; participate in conferences; the employment of professional staff; technical/professional customer support; a warranty and repair system, etc.
Often, from the outset, the definition of such conditions is very indicative of the character and nature of the distributor and, above all, of his intention and willingness to establish a long-term supplier-distributor relationship. f. Resale of products. The distributor is free to resell the products at the prices and conditions that the distributor deems appropriate. The company has no control or liability related to the price at which the distributor resells the products, and the distributor keeps the company harmless and releases the company from any liability arising therefrom. . . . .