Distributor agreements are a piece of written document, essentially legal, that gives the permission to the requesting distributor to sell a certain product. Such agreements should contain a detailed description of the products to be sold, the price tag, and other terms and conditions. These sort of agreements also serve as a list of legal bindings that the distributor is subjected to by the product manufacturer.
The following points should be kept in mind while structuring a distributor agreement-
- The language of the agreement should be lucid enough to be understandable by the all and sundry. Meandering words should be avoided as much as possible.
- All the minute details should be clearly documented in the agreement. These documents should be prepared in a way that no ambiguity arises and the concern of both the parties should be taken care of.
- As distributor agreements are essentially a legal document, all the terms and conditions and the legal proceedings to be taken in case of their violation should be clearly mentioned.
Abiding by the above guidelines, an effective distributor agreement can be constructed. This could lead to a healthy relationship between the manufacturer and the distributor and ensures a smooth flow of the business from both ends.
Category: Distributor Agreements