- A contract with a distributor should state:
- The period of the agreement.
- The territory where the distributor may operate.
- Whether a distributor may operate on an exclusive or a nonexclusive basis.
- That distributor may sell complementary products that do not conflict.
- The discount schedule.
- The level of inventory they must carry.
- Reasons for terminating the agreeement.
- Limits on the legal authority of the distributor to obligate the firm.
© 2004 John Michael Pierobon