What is a distributor agreement

A distributer agreement is an agreement which is signed between two parties, out of which one is the company or manufacturer of products and goods to be distributed or sold and the other is the party which agrees to be the distributor of the product or service. Such agreements are ones which consist of details such as date of commencement, termination date, details of the parties, terms and conditions and the signatures of the involved parties. All these points make the agreement a really important one.

The first main reason of importance of distributor agreements is the fact that they are legally binding for the involved parties. This means that there is no scope or way through which a party can violate the terms and not face any legal actions taken against him. The legal angle not only brings security for the involved parties but also increases the whole seriousness of the agreement.

Another reason why distributor agreements are important is that they help the parties to reach a better understanding level and a mutual trust that helps to build a stronger relationship for the future. The relationship maintained through this agreement can go a long way as far as business bond is concerned. Distributor agreements are not only important to the parties which are involved but also for the legal body which is appointed to resolve dispute in the case where one or both of the parties fail to abide by the terms of the agreement. In that case, the legal body can look into the details of the agreement and find out exactly what went wrong and whose fault was it.

The various points such as dates, monetary considerations also make the distributor agreement important as it gives it a full proof nature which is hard to violate or transcend.

Category: Sample Agreements

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