Distribution Agreement

Our fully customisable Distribution Agreement template can be used by a product manufacturer to appoint either exclusive or non-exclusive distributors. They can be appointed in different territories.

Using a Distribution Agreement

If your business is expanding, you may need a distributor for your products. If this happens, you will want to purchase our Distribution Agreement so that you can appoint a distributor in the UK or internationally. Our UK-solicitor-drafted template is very easy to understand and use. You can customise it for your own business needs. Once you have bought the Distribution Agreement template, you can reuse it as often as you like. If an update is provided by us, you will receive any updates free of charge. For one low price you could have the commercial document that you need to appoint a distributor.

A supplier of a product or service

If your company is a supplier of a product or service, it can use a distributor to help reach new customers in new markets. You would have a new distributor sign this document so that they could sell your product or service. These sales would take place in a designated county, country or other geographical area that has been stated in the Distribution Agreement. This template defines the relationship between the parties. The agreement would set the boundaries of how the parties will work together.

You could have in the Distribution Agreement that the distributor will purchase the products prior to selling them. If this isn’t agreeable to both parties, you could customise it to state that the distributor will pay for the merchandise only after it has sold it. Either way, the template will be legally binding once both parties have signed it.

One good reason to have a distributor in a foreign country is that they will know the customers better than you will. They will also know about local customs and legal issues. A distributor would be responsible for marketing the product, assuming any currency risks and for extending credit to the purchaser. This limits your chance of losing money on this type of venture.

Set your Distribution Agreement terms today

The distributor could want some concessions for taking this risk though. This might consist of asking for discounts to buy the product or better terms. You won’t be marketing of your product or pricing it directly, so it could hurt you if your distributor does not do it well. Also, the distributor could want a long-term agreement. This would help it offset the cost of setting up and promoting the product in the territory. To balance this, you would want to ensure the distributor sold a minimum quantity each year. You can set  out all these terms in the Distribution Agreement as you need them.

For our other commercial contract templates, click here.