Distributor Contract

• 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.

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© 2004 John Michael Pierobon

Notes