A distribution contract is a commercial contract between a supplier of goods and a distributor of goods. The supplier may be a manufacturer or reseller of the products. – The conditions that the supplier and distributor can terminate the contract and what is their maximum responsibility under the agreement. There are different forms of distribution agreements. There are exclusive and non-exclusive distribution agreements. In an exclusive distribution agreement, there is only one distributor or distributor. The distributor is excluded from other distributors. Therefore, the product supplier is limited to the performance of this distributor. If the distributor does not sell a product, no product is sold. The law therefore requires some effort in these distribution agreements. Regardless of what the distribution agreement says, the law will find that it will be violated if the distributor does not actually seek to market the products. Similarly, distribution agreements should have explicit conditions. This problem arises when distributors distribute multiple products and/or have other businesses.

A distribution agreement, also known as a distribution agreement, is a contract between the channel`s partners that defines the responsibilities of both parties. The agreement is usually between a manufacturer or seller and a distributor, but may, in some cases, involve two distributors or a distributor and another pipeline unit. By decision of 16 March 2020, the Competition Authority (`FCA`) fined the Apple Group (“Apple”) 1.1 billion euros for (i) implementing a series of vertical competition restrictions within its distribution network and (ii) the Economic Commission (…) A merchant agreement generally defines the terms of sale of products purchased by the distributor, the expected obligations and responsibilities of the distributor, and the circumstances under which the contract may be terminated. A merchant contract can also determine the means of payment, the date of delivery and the extent of the merchant`s territorial rights. Evaluations of a company`s distribution agreements, whether or not they are a large company, can save time and money in the long run. A distribution contract may be international. The largest distributors of electronics and computing, including Arrow Electronics, Avnet, Ingram Micro and Tech Data, operate subsidiaries in a number of countries for wide geographic coverage. Finally, distribution agreements should include dispute resolution provisions. Whatever the right relationship between the supplier and the distributor, there is always a risk of litigation. Below, you will find a checklist of factors to consider when establishing a distribution contract: as these are complex agreements, there are a number of unique issues that need to be addressed. I will ensure that the agreement is drafted correctly and that it protects the rights and business interests of your business.