A distribution agreement, also known as a distribution agreement, is a contract between the channel`s partners that defines the responsibilities of both parties. The agreement is usually between a manufacturer or seller and a distributor, but may, in some cases, involve two distributors or a distributor and another pipeline unit. Distributors, such as retailers or value-added resellers (VARs), purchase products from merchants who then sell them to their end customers. In the merchant-distributor relationship, the distributor acts as an intermediary between a supplier and a distributor. This relationship therefore requires a contractual agreement different from the one described above. In addition, the manufacturer or lender must define a distribution strategy if it takes into account the nature of the agreements to be concluded. A selective strategy requires a small group of distribution points to cover the channel`s target markets. An intensive strategy aims to place the product through a wide distribution in front of as many potential buyers as possible. This last point generally applies to consumer products rather than commercial markets.
A merchant agreement generally defines the terms of sale of products purchased by the distributor, the expected obligations and responsibilities of the distributor, and the circumstances under which the contract may be terminated. A merchant contract can also determine the means of payment, the date of delivery and the extent of the merchant`s territorial rights. The company manufactures and markets the products listed in Section 1 .c (the “products”). The distributor wishes to acquire the products from the company for resale in the areas or geographical areas covered in Section 1.b (the “territory”). The company wishes to appoint the distributor as the exclusive distributor of the products in the territory and the distributor wishes such an appointment under the terms of this agreement, including all parts or schedules attached to it. A distribution contract may be international. The largest distributors of electronics and computing, including Arrow Electronics, Avnet, Ingram Micro and Tech Data, operate subsidiaries in a number of countries for wide geographic coverage. a.
Exclusive appointment. Subject to the terms of this dealer agreement, the company designates and grants the distributor the exclusive right to sell and distribute the products to customers in the territory (the “customers”) and to provide non-distributor services to the company, as stated here in this section. The distributor limits its product activities to customers within the territory and, without the company`s explicit written consent, forgoes selling or transferring the products directly or indirectly to a person outside the territory.