We hope this material will help you resolve issues related to the conclusion of an exclusive distribution agreement. Distributor contracts and distributor agreements are similar documents used with companies to designate the rights to sell or sell products to companies. A distributor sells primarily to companies that resell goods; a merchant is sold to the public. The distributor contract is an agreement that provides that one party (the distributor) agrees to purchase the goods from the other party (the supplier) and the distributor is responsible for promoting sales in the specified area; Under this agreement, the supplier undertakes not to transfer the goods within the territory of the contract, with the exception of the distributor, and not to engage in direct activities in the territory reserved for the distributor, as well as not to have the right to exercise with third parties, agreements on contractual territory, agreements similar to the contract, as well as other contracts that provided for the goods to be delivered by the supplier in the area of the contract. The area for the promotion of goods and exclusive: this provision must be included in the contract. The contract should indicate which territory the distributor is to operate in. The distribution may or may not be exclusive. In principle, exclusivity applies throughout the territory, but can only be limited to part of it. 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.
In addition, the manufacturer or lender must define a distribution strategy if it takes into account the nature of the agreements to be concluded. A selective strategy requires a small group of distribution points to cover the channel`s target markets. An intensive strategy aims to place the product through a wide distribution in front of as many potential buyers as possible. This last point generally applies to consumer products rather than commercial markets.