Supplier Distribution Agreement

Supplier Distribution Agreement

If your company is considering an international distribution agreement, it is important that you take professional advice. It is an agreement that ensures that only a distributor, for a specific region, market, product or other company, has exclusive rights to market that product in that market. Distribution agreements generally apply to a specific “territory” in which the distributor will operate. Distributors will then sometimes look for certain protections from the supplier to ensure that other distributors do not invade this area. In this context, there are a number of types of distribution agreements. Exclusive distribution is the case where the supplier agrees to sell the goods under the agreement only to the trader in a given territory and undertakes not to enter into contracts with other distributors or, importantly, not to sell the corresponding goods directly to other customers located in the same territory. A distribution agreement is usually used when a supplier of goods does not have a presence or representation in a particular market or country. Suppliers are generally looking for distributors because they can help in the field with invaluable knowledge and know-how and provide access to well-established distribution channels. A merchant can be either a simple “re-deployment” or a “VAR” (a value-added reseller) that offers end-users additional services such as tracking and repairs.

Many distribution agreements contain a clause providing for what the distributor receives for the sale of the product, as well as a commission based on the number of products sold. Commissions give the distributor an additional incentive to sell the supplier`s product as much as possible. The distributor receives a percentage of the total turnover, so the more it sells, the more money both parties earn. (b) “confidential information,” any information provided by one party to the other party relating to a party`s business relationship or the business relationships of a party, including, but not exclusively, information relating to the finances, products, services, customers and suppliers of a contracting party. All confidential information disclosed in concrete form is reported by the publication party prior to disclosure as “CONFIDENTIAL” or “PROPRIETARY” or by a similar caption. Any confidential information disclosed orally orally or visually must be identified as such before, at the same time as disclosure or after disclosure and summarized in writing by the publishing party within thirty (30) calendar days after disclosure.

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