Distribution agreement: short version

A practical distribution agreement whereby a merchant or manufacturer appoints a distributor who buys the goods and re-sells on his own account at home or abroad. Short version covering all basic matters but stripped of complicated options. Includes extensive drafting notes. Favours merchant but can be edited easily to favour distributor.

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About this document

This is a basic agreement between manufacturer or trader and distributor. Drawn to prefer the manufacturer’s interest and protect his goods and his intellectual property. Although referred to as short, it is a full version, protecting the merchant’s products and business and providing an excellent framework for this important relationship.

This distribution agreement is for any business selling goods of any type but does not cover export provisions.

Whether you are the distributor or the merchant, there will be many areas where you would like the other of you to do things your way. As a result there will be a lot to negotiate. By setting everything down in a document like this before you start to talk, you have a head start. The agenda is yours.

This is a very comprehensive document, but as always with Net Lawman documents, you can reduce it easily to the exact terms you need.

Selected contents

  • Setting up the agreement
  • Appointment of distributor
  • Obligations of distributor and of agent
  • Compliance and regulation
  • Products recall
  • Minimum sale requirements
  • Distributor's marketing obligations
  • Distributor's liaison and reports
  • The Price, orders and acceptance
  • Delivery terms
  • Payment terms, including payment on running credit account
  • Risk and retention of title
  • Products defective or not as ordered
  • Warranty and service policy
  • Disclaimers and limitation of liability
  • Mutual indemnities
  • Assignment and change of control
  • Confidential information
  • Intellectual property
  • Duration and termination
  • Other important legal provisions
  • Options for six schedules you may need
Draftsman

This document was written by a solicitor for Net Lawman. It complies with current South Africa law.

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