What is a Distribution Agreement?

A Distribution Agreement regulates the relation between the supplier of a product (the supplier) and the person or company that has agreed to market and sell that product in a particular territory (the distributor).

If you have a product which is ready for market but perhaps you do not have the time to get it noticed then this type of relationship may be for you.

A Distribution Agreement will of course contain many clauses but most notably it will impose various conditions and duties on a Distributor.

Possibly the most common of these is a minimum sales target. Alternatively it may impose a minimum order requirement so that the Supplier is guaranteed a certain amount of orders each month or quarter.

This type of agreement will also include various clauses as to who can do what and where, when drafting a Distribution Agreement it is important to consider EU competition law as contravening this can cause the contract to be null and void.

information on EU Competition law can be found in this section.

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