Distribution Agreement
Category: Legal
Definition (plain English)
A contract appointing a distributor to buy and resell goods in defined territories, channels, customers, or product lines.
Why it matters commercially
Distribution agreements control price structure, territory, minimums, exclusivity, payment terms, stock obligations, brand control, and dispute exposure.
Example
A food exporter required the distributor to hold minimum shelf-life stock, meet annual volume targets, follow label rules, and pay before each replenishment shipment.
Common mistake
Using a generic distribution template without defining Incoterms, payment terms, territory, exclusivity, minimum purchases, regulatory responsibility, and termination rights.
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