Distribution Agreement Template: Territory, Pricing and Terms

DISTRIBUTION AGREEMENT FAQ

What is a distribution agreement?

A distribution agreement is a formal contract between a manufacturer or supplier and a distributor that sets out the terms for selling and distributing products. It defines how products will be marketed, where they can be sold, and the responsibilities of each party in the distribution process.

Why do you need a distribution agreement?

It provides legal clarity by detailing roles, sales targets, territories, payment terms, and operational responsibilities. A well-structured distribution agreement helps prevent disputes, protects both parties’ commercial interests, and ensures consistent and effective product distribution.

When should I use a distribution agreement?

You should use a distribution agreement whenever products are sold through third-party distributors, whether on an exclusive or non-exclusive basis. This is especially important when expanding into new markets or regions to clearly define rights and obligations.

How to write a distribution agreement?

Include the list of products covered, defined sales territories, exclusivity arrangements, pricing structures, payment terms, marketing obligations, minimum order requirements, duration of the agreement, and termination clauses. Ensure the contract complies with applicable trade and competition laws.

Need a professional distribution agreement?

Use our AI-powered contract generator to create a customized, legally sound distribution agreement in minutes — tailored to your products, markets, and business goals.