An exclusive distribution agreement is one that is entered into between a supplier and a distributor wherein the distributor will only deal in the products of the supplier exclusively. In such agreement usually the suppliers try to minimize competition and increase sales for the product due to its exclusive availability. The exclusive distributor arrangement provides a kind of monopoly for the supplier of the products in the market.
The agreement defines all the terms of the contract between the supplier and the distributor such as name and address of the supplier, name and address of the distributor, terms of distributorship, name and description of products of the supplier, location where the products can be made available by the distributor, conditions for appointment of distributor, relationship between the parties, sale price offered by distributor, margin money for distributorship, advertising costs, addition of new products and terms thereof, training provided to the distributor, products order procedure, packing and delivery etc.
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