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What is a distributor agreement?
A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.
What is sole distributor agreement?
A distributor agreement is a contractual agreement in which a distributor -- also referred to as a distribution company -- agrees to distribute the products it purchases from a supplier or manufacturer. A sole distributor agreement is one in which the manufacturer sells exclusively to one distributor.
What is the difference between sole distributor and distributor?
Exclusive distribution agreements give the distributor the exclusive right to sell the product in the territory covered by the distribution agreement. Sole distribution agreements, where the distributor will be the only distributor with whom the supplier will deal in a particular territory.
What is sole distribution?
Sole distributor definition, in simple terms, is what happens when a supplier gives a distributor the exclusive right to sell his or her products, goods, or services to a select group of consumers or in a specific market territory.
Are exclusive distribution agreements legal?
Although not illegal in themselves, such exclusive dealing arrangements, when orchestrated by a monopolist, can be an unlawful means to maintain a monopoly.
What is an exclusive distribution agreement?
Distribution is exclusive when only certain retailers are given the option of carrying a product in its store. Exclusive distribution is an agreement between a supplier and a retailer granting the retailer exclusive rights within a specific geographical area to carry the supplier's product.
What is an example of exclusive distribution?
Exclusive distribution definition is a kind of distribution a manufacturer or supplier authorizes only one distributor to carry out within a definite region. An example of exclusive distribution is Apple solely authorizing AT&T to be the distributor of the iPhone to end users.
What is the difference between sole and exclusive distributor?
Exclusive distribution agreements give the distributor the exclusive right to sell the product in the territory covered by the distribution agreement. Sole distribution agreements, where the distributor will be the only distributor with whom the supplier will deal in a particular territory.
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