1. What is a Distributor Agreement?
A distributorship agreement is a document that creates a relationship of distributorship between a manufacturer and a distributor. The agreement confers on the distributor the right to supply the manufacturer's goods within a region or regions. Such rights may be exclusive within that particular region/regions.
2. Why is it important?
a. governs the relationship between a manufacturing firm and its sole selling agent. b. It helps to improve focus on core areas and optimize operational synergies.
c. owner enters into a distribution agreement with distributing agents in order to make their property accessible and available in the market.
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