Exclusive Distributor Agreement and the Things to Know
The Exclusive Distributor Agreement is functional and beneficial when the supplier chooses a certain distributor as the sole distributor (or its products) within a specific or certain market. This agreement won’t be useful for distributors who get various goods from various suppliers or manufacturers. Of course, such a business agreement has its own benefits and advantages. In the event that a certain supplier chooses you to market their products in a certain market, learn more about the nature of the agreement.
About the Agreement
The Exclusive Distributor Agreement is the written contract between a supplier and a distributor with certain characteristics. Besides the supplier chooses a distributor for a certain market, the supplier must also agree that they won’t distribute or sell the products in the market. They can’t choose any third party either to sell the products in the market.
The agreement usually leads to quid pro quo deal where the supplier wants something (special) for the exclusivity they are offering. In the most common cases, they may require a minimum purchasing demand or commitments. It is also possible that they demand other obligations with performance-related basis.
Different Types of Document Templates
Depending on the nature and the types of agreement, the templates can come in various forms. The most common one is the standard agreement. There is also the long form that would specify everything in a more detailed manner.
Every involved party should understand their rights and obligations. In some areas, the agreement is often referred to as the sole distribution agreement. But such a name can be misleading because it often means that the supplier has the rights to sell the products in the market – often within the same territory as the distributor. This can be beneficial for the supplier but not so much for the distributor.
If you want to have such an agreement, it would be better to learn and understand the document thoroughly. If you are a distributor, then you want to make sure that you have the sole right to sell the products in the market because the supplier has given you the rights to do so. If you are a supplier, you want to make sure that you have created a fair opportunity for both of you.
If you need help, feel free to check our library. You are welcomed to browse and explore around our extensive collections of many templates, including Exclusive Distributor Agreement template.