Signature Manufacturing and Supply Agreement Made Easy

Distribute company contract

- [Narrator] Hello, everyone. Well today I just wanted to run through what should be in a distribution agreement. And so I just wanted to run through a short checklist that we've got that sets out, things you should think about and check off before you enter into a distribution agreement. So let's get into it. So the first thing is you wanna make sure that you have a clear understanding of the products involved. So the agreement should clearly set out what products you are able to distribute, or so that in the future, there's absolutely no doubt as to what rights you have to what goods. Now this is also particularly important where you as a distributor are given exclusive rights, say the exclusive rights are in Australia. Then you wanna make sure that the agreement clearly sets out what goods you have the exclusive right to distribute. And that way they can be no dispute later when, well, basically there can be no dispute because the parties are clear as to what's been agreed. All right, so that's point number one, make sure you know which goods involved. Secondly, it sounds obvious, but the distribution agreement should clearly specify the territory in which the distributor can distribute the distributed goods. And this can be broken up almost any way you like, as long as the parties are able to clearly understand the region. So when I say this can be broken up any way you like, I mean, the geographical limits of the territory can be set anywhere you want. So you could have the rights for Australia. They could be the rights to distribute goods in say a state or territory. New South Wales, Queensland, WA. They could be a smaller region, like, say, council areas or cities. Be sure you get those once you start getting smaller in terms of geographic region you need the agreement should set out whether, if you have the exclusive rights say to distribute goods in New South Wales, can you supply them into other states? Like can you ship to Queensland or Western Australia? So you've gotta think about those things. And the answer to that should be documented in the agreement. Right, so we've got products, we've got territory, what's the next thing? You need to understand whether your rights are exclusive or non exclusive. Now exclusive means also to the exclusion of the supplier. So that means if you have the exclusive rights to distribute certain goods in Australia, then you are the only person that is entitled to do so. It's important to get this right because given the distributor is going to spend time and money marketing the products in the relevant territory, they need to be clear that they are given certain rights to do that, in terms of their rights need to be, exclusive or non exclusive. Okay, so that's very important. Next, the agreement should set out what happens with new products....