Distribution Agreement

When to use this

A distribution agreement governs the relationship between a supplier/manufacturer (who makes or owns the product) and a distributor (who buys the product and resells it in a defined territory). The distributor is not an agent — it takes title to goods, bears inventory risk, and sells on its own account.

Use this skill when:

• A manufacturer is entering a new market and wants a local partner to carry its products.
• An existing distribution relationship needs to be formalized or renegotiated.
• A supplier is considering granting exclusivity in a territory and needs to understand the commercial and legal implications.
• A cross-border product launch in a MENA jurisdiction requires a local distributor.

Critical distinction: the word "agent" must be avoided in distribution agreements in MENA jurisdictions where Commercial Agency Laws exist. Using agency language, even inadvertently, can trigger statutory protections and termination indemnities that are expensive and difficult to exit. See Jurisdictional Notes.

Required inputs