A distribution service agreement is one that is entered into between two parties where one company is the service or product provider and the other company is one which is engaged in providing distribution services. The agreement essentially brings in a parent and distributor relationship between the two companies. The agreement provides terms and conditions necessary for providing the distribution service.
Some of the terms and conditions that are included in the distribution services agreement are name of the product or service company, registered address of company, description of product or service of company, name of the distribution company, registered office of the distribution company, fulfillment of terms by distribution company, fee details for distribution activities, mode of payment of fees, frequency of fee payment, date of commencement of distributorship, clauses of risk and loss for both the companies, verification of records of both the companies on mutual demand, provision for maintenance of confidentiality of information between both the companies etc.
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