If you are thinking of working with a supplier of goods or a distributor to sell your goods, you will need a properly drafted distribution agreement.
A distribution or supply agreement is legally binding contract that outlines the terms and condition under which a supplier (who manufacturers or re-sells goods) grants permission for a distributor to sell the goods onto customers (wholesalers or end users). This agreement will incorporate various nitty gritty terms and conditions of supply, to ensure that you are protected from any issues that might arise along the way.
While an informal arrangement may seem easier, in the long run it can often lead to misunderstandings especially where exclusivity and minimum sales may be involved. A written distribution agreement is particularly important in an arrangement such as this, where they may be lots of moving parts involved and plenty of room for error.
Common issues we consider in a distribution agreement include:
- sign-on fee;
- the territory or scope of the arrangement (taking into consideration competition laws and any existing
- payment terms;
- any reporting obligations;
- any minimum performance thresholds:
- whether the contract will be extended and at what cost;
- intellectual property licences including trademarks;
- whether the distributor will be required to advertise the goods; and
- when and how the agreement may be terminated (and the consequences).
The Gladwin Legal team can assist with:
- drafting and reviewing a distribution agreement;
- amending an existing distribution agreement;
- resolving disputes;
- drafting tailored clauses;
- consumer law advice; and
- assistance with all other commercial and consumer law matters.
For a free consultation and peace of mind about your distribution agreements or compliance, get in touch with our expert commercial contract lawyers at Gladwin Legal. We’re here to help.