A sales contract is used when a manufacturer or supplier of a product wants to develop a distribution network. The distribution agreement documents the agreement reached between the parties where the distribution rights granted do not exist exclusively or exclusively within a given geographical area. A distribution contract is a legal contract that gives a distributor the right to sell a supplier`s products. This agreement is called a distributor. A supplier may not earn as much profit per unit sold to a merchant. However, sales to a distributor are made directly to its other customers, in addition to the supplier`s sales. A distribution allows a supplier to make a greater overall profit. a. Exclusive appointment. Subject to the terms of this dealer agreement, the company designates and grants the distributor the exclusive right to sell and distribute the products to customers in the territory (the “customers”) and to provide non-distributor services to the company, as stated here in this section. The distributor limits its product activities to customers within the territory and, without the company`s explicit written consent, forgoes selling or transferring the products directly or indirectly to a person outside the territory.
The company is not authorized to sell or deliver products on the territory, directly or indirectly, except through the distributor, and the company cannot address the distributor`s customers without the company`s prior written permission. The company manufactures and markets the products listed in Section 1 .c (the “products”). The distributor wishes to acquire the products from the company for resale in the areas or geographical areas covered in Section 1.b (the “territory”). The company wishes to appoint the distributor as the exclusive distributor of the products in the territory and the distributor wishes such an appointment under the terms of this agreement, including all parts or schedules attached to it.