Are you in the process of setting up a new distribution agreement with a supplier or distributor? If so, you may be wondering whether it`s necessary to spend big bucks on a lawyer to draft your agreement. The good news is that there are plenty of free templates available online that can help you get started.
One of the most common types of distribution agreements is an exclusive distributor agreement. This is where a supplier agrees to sell their products exclusively through one distributor, in a specific geographic area or market segment. These agreements can be complex, and it`s important to get them right in order to protect the interests of both parties.
A distributor agreement template will typically include the following sections:
1. Definitions: This section will define key terms used throughout the agreement, such as "products", "territory", "minimum order quantity", and so on.
2. Appointment: This section will outline the supplier`s appointment of the distributor, including the scope of the agreement and any exclusivity provisions.
3. Obligations of the Distributor: This section will outline the distributor`s obligations, including their responsibilities for marketing, sales, customer service, order processing and payment.
4. Obligations of the Supplier: This section will outline the supplier`s obligations, including their responsibilities for manufacturing, quality control, product development and support.
5. Prices and Payment: This section will outline the pricing structure and payment terms, including any minimum order quantities, discounts, and payment schedules.
6. Intellectual Property Rights: This section will address ownership of intellectual property, including trademarks, patents, copyrights, and trade secrets.
7. Termination: This section will outline the circumstances under which the agreement can be terminated, including breach of contract, insolvency, or force majeure events.
8. Governing Law and Dispute Resolution: This section will specify the governing law and jurisdiction of the agreement, as well as the method of dispute resolution (arbitration, mediation, or litigation).
It`s important to note that every distribution agreement will have its own unique requirements and provisions, depending on the nature of the business and the products involved. However, a good template will help you structure your agreement properly and ensure that you cover all the necessary bases.
When choosing a distribution agreement template, make sure to choose one that is tailored to the specific industry or product type you are dealing with. For example, a template for a software distribution agreement will be different from one for a consumer goods distribution agreement.
In conclusion, while it`s always a good idea to seek legal advice when drafting a distribution agreement, a free template can be a useful starting point. Just be sure to customize it to your specific needs and consult with a lawyer before signing on the dotted line. Good luck!