Crafting And Enforcing Distribution Agreements
A business usually handles the production, manufacturing and distribution of a product. Generally one business will focus on development while another will focus on distributing the product into appropriate channels. The contractual relationship between a supplier and distributor is embodied in a distribution agreement.
What Factors Affect Your Agreement?
While no two agreements are exactly alike, there are many important factors and other considerations to keep in mind:
- Exclusive vs. nonexclusive distribution rights
- Pricing and price changes
- Avoid inequalities and protecting your interests
- Accurately defining the business relationship
- Ability to amend the distribution agreement
- Product warranty issues
- Payment terms
- Order forms
- Risk of loss
- Advertising efforts
- Confidentiality and IP issues
It is also particularly important for the agreement to clearly define the relationship and rights of termination. Even the most amicable business relationships will face a number of issues over the life of a contract. In those moments, the contractual terms of the agreement can determine whether the business arrangement will last and be successful well into the future.
Preserving Relationships And Avoiding Early Termination Of Distribution Agreements
At Slinde Nelson, we understand these potential issues. Our business attorneys are experienced in identifying red flags and carefully drafting appropriate protections into a contract. These vital elements could be the difference between a well-defined relationship and a tumultuous one.
If you are entering into a distribution relationship, our experienced Oregon and Washington licensed attorneys can assist in negotiating, assessing, drafting and closing your distributor agreement.