Distribution agreement

Distribution agreement

Weagree model distribution agreement. Options for exclusive, non-exclusive and sole; optional scoping for a territory or market segment (or both); a carve-out for key customers; a long list of obligations for the distributor; IP allocation; Product-return procedure and recalls

Weagree’s model distribution agreement provides for all options of a distributorship, to be tailored to needs. A choice must be made for the exclusivity and for the area (territory/market segment) of appointment of the distributor or reseller.

There is both a carve-out for key customers of the supplier itself (not to be approached) and the option to request the distributor to service such key customer locally.

A list of Distributor obligations provides (optionally) for the full business development cycle, sales activities, customer servicing, after-sales services, proper book-keeping and various compliance matters. Similarly, a list of Supplier obligations addresses supply with technical support, training, product roadmap plans etc. The distribution agreement provides for an ordering and delivery mechanism.

In a distribution agreement, IP rights may be important. Intellectual Property aspects addressed include licence restrictions (for any trademarks), any required registration of IP rights, and notification of Supplier of any infringements.

The distribution agreement provides for provisions on after-sales services (incl. warranty returns), and a requirement to collaborate in the event of product liability or a product recall.

Includes standard provisions on (limited) warranties, limitation of liability, force majeure, confidentiality, duration and termination. An elaborate article on post-termination obligations is included (in order to prevent dumping or price-erosion) and to ascertain after-sales servicing.

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