Supply & Distribution Contracts
A typical distribution agreement regulates the commercial terms whereby the supplier supplies goods and/or services to a distributor for resale in a specified territory.
The ability for a business to expand quickly using distributors remains an attraction for many business owners. For the supplier, distribution agreements provide limited financial risk and an opportunity to test the market in new territory. For the distributor, it may provide the opportunity to add incremental sales to an existing infrastructure cost.
It is essential that the distribution agreement (and related agreements e.g. agency and licensing agreement) be carefully drawn to address key issues, including:
- intellectual property rights
- supplier products, delivery, prices and conditions of sale
- minimum performance targets
- quality control
- marketing requirements
- reporting obligations
We have extensive experience in acting for suppliers and distributors in a wide range of industries, including manufacturing, transport and professional services. Examples of recent transactions include:
- acting for a supplier in the supply of logistic services to a print media outlet within Victoria and New South Wales
- advising on a co-operation agreement between an Australian client and a U.S. supplier of an internet-based software
- drafting supply and distribution agreements relating to a range of cosmetic products to be distributed in Australia and New Zealand
- acting for a supplier in relation to a supply agreement with a national chain of supermarkets