We can review and assist you in the drafting of Distribution Agreements for a fixed fee – please contact any one of our Bristol and Portishead based commercial lawyers to discuss further.
Many suppliers choose to appoint an intermediary or ‘middle man’ to assist with the sale of their goods.
There are several ways of doing this and depending on the nature of the arrangement and the needs of the supplier, the contract may be an agency or distribution agreement. Here we deal specifically with distribution arrangements. For Agency Agreements, please see here.
What is a distributor?
A distributor is an individual, business, or company who buys goods from a supplier and re-sells them in its own name to its own customers, adding a margin to cover its own costs and profits.
What types of distribution agreement are there?
- Exclusive Distribution Agreements: The distributor has the exclusive right to sell the goods in a specified area. The supplier cannot sell the goods directly to customers or contract with another distributor in the same area.
- Sole Distribution Agreements: The distributor has an exclusive right to sell the goods in a specified area with the exception that the supplier may sell the goods in that area directly to customers itself.
- Non-Exclusive Distribution Agreements: The supplier has total freedom to sell directly to customers and to appoint other distributors within an area.
- Selective Distribution Agreements: The supplier appoints a limited number of distributors in a specific area who meet certain criteria.