A wholesale distribution agreement is a legal contract between a manufacturer of a product and a prospective wholesale distributor of the product under which distributor undertakes to sell and distribute the product in his particular territory.
However while entering into such an wholesale distribution agreement there are many important issues which need to be taken into consideration at the time of drafting of papers such as the products to be distributed, the area in which the distributor will work, the resources he will have to deploy, exclusivity of the distributor in his area, the payout percentage which the party will receive, responsibilities of both parties such as marketing, distribution, stock supply, after sales services and quality of the products, rights of both parties such as ownership of brand, licensing rights, appointing further sub-distributors and retailers, and remedies available in case of conflict. It is recommended that both the parties take help of qualified attorney to prepare this agreement and avoid any future confusion or misunderstanding.
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