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A Distribution Agreement, also sometimes called a Distributor Agreement, is a document between two parties, a Supplier and a Distributor. The Supplier can be an individual or business and is the party that "supplies," or sells, the goods to the Distributor. The Distributor can also be an individual or a business and is the party that "distributes," or re-sells (through retail or through other distributors) the goods that the Supplier provides.
Within these agreements, the Supplier and the Distributor outline their expectations for the sale and distribution of the goods, as well as the general behavior and bounds of the relationship between them.
In a Distribution Agreement, the most important details of the parties' relationship will be entered: things such as a description of the goods being sold, how and when the Distributor is expected to pay, whether the contract is exclusive or not, and what penalties for early termination are. A good Distribution Agreement will also have both parties covered in case anything goes wrong: things such as dispute resolution and governing law should be included.
How to use this document
This document can be used when a Supplier and Distributor are getting ready to enter into a new contract for the distribution of goods.
In this document, the form filler will be able to enter pertinent identifying details, such as whether the parties are individuals or businesses, and their respective addresses and contact information. The form filler will also input the most important characteristics of the agreement between the parties, like duration for the contract, dispute resolution and governing law, and of course, any pertinent details about the actual distribution relationship.
When this agreement is filled out, it should be printed, signed by both parties, and a copy should be kept with each.
Distribution Agreements in the United States are subject to both Federal laws and specific state laws, which cover general contract principles like formation and mutual understanding. Federal laws may restrict what items may be underlying the contract (for example, no one may not contract to sell anything illegal), but individual state laws may govern the interpretation of the contract in case of a dispute.
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