Distribution Agreement
A Distribution Agreement is a contract that sets out the terms and conditions of the distribution arrangement between a manufacturer or supplier of a product and an Australian or overseas distributor that wants to purchase the supplier’s goods to sell.
4.7 (23 reviews)
Last updated November 12, 2024
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This is a useful tool that identifies each party’s rights and obligations under the agreement with the option of giving exclusive or non-exclusive rights to the distributor.
Important considerations
Since the agreement may involve dealings with international markets, the document should be customised to incorporate the requirements of each party with the awareness that there is no uniform regulations or law around the world.
This document should only be used for the appointment of a distributor, as it excludes the creation of agency or partnership relationships. Therefore, it is important to be aware of the difference between distribution and agency.
Difference between distribution and agency
Agency involves a person called ‘agent’, who usually acts as a representative of the supplied goods. Agents do not take ownership of your goods and are generally paid a commission based on the sales generated. Therefore, the supplier as the principal has more control over the way the agents operate, for example settling on the sale price.
Distribution, on the other hand, involves a ‘distributor’, who buys the products and resells them in their own right for their own profit.
The Legal Risk Score of a Distribution Agreement Template
Our legal team have marked this document as low risk considering:
- The specifications can be easily changed.
- The obligations coincide with the performance of the services, and few obligations extend beyond that.
- The agreement is simple to sign.
Distribution Agreement Checklist
Complete your free Distribution Agreement with our checklist
Get the right individuals to sign the document
Where the parties are companies, their authorised representatives should sign this document.
Keep the document readily available
Both parties should have the document handy as an easy reference for their obligations.
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