What is a distributorship agreement?
It is an agreement between the manufacturer and distributor company. The nature of relation among the parties of the agreement, terms and conditions, obligations, payment terms etc. will be detailed in this agreement.
Why Distributorship Agreement Is Important?
The Distributorship Agreement is important because the transactions between the manufacturer and the distributor is explained in this document. In the absence of such an agreement, there are chances of dispute among the parties due to the lack of definite terms. The smooth functioning among the parties can be achieved by executing a proper distribution agreement among parties.
What All Are The Points To Be Considered While Creating Distributorship Agreement?
The important points to be considered in a distributorship agreement include the nature of relation, rights and obligations of the parties, payment terms, protection of IP, termination clauses, delivery and inspection of the product, indemnity clauses, dispute resolution etc.