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Knowing what to cover in distribution contracts

On Behalf of | Sep 15, 2022 | Comprehensive Business Law

It might not be uncommon for a multitude of companies to offer products and services from a variety of manufacturers. While the relationship between suppliers and distributors may act as an essential aspect of commerce, the process of entering such an arrangement could seem intimidating at times. Business owners in New York who are preparing to initiate similar transactions may find it helpful to seek insight on what to cover in distribution contracts, as being thorough in these agreements could be essential to protecting the interests of all parties involved. 

Distribution contracts 

One of the first steps to take could involve exploring the various types of distribution agreements to determine which path might best fit a company’s needs. When drafting the contract, it could be helpful to include thorough information on the identities of the parties involved and the role each will play in the arrangement. Covering topics such as acceptable locations of product sales and whether exclusivity will be a factor could also be essential. 

It may also be beneficial to include information on important dates, such as the date the arrangement will begin and dates for product deliveries and payment arrangements. Companies could also consider discussing terms on how to proceed should the sale of products fail to go as planned. Covering factors such as the length of the agreement and the circumstances in which one party may seek to terminate the arrangement before this date may prove helpful. 

Drafting contracts 

This may only be a brief list of basic components to cover in distribution contracts and those preparing to enter a similar arrangement could benefit from seeking advice early in the process. By consulting with an attorney, a person could obtain much needed guidance on every essential topic to address regarding similar business endeavors. An attorney in New York can address a client’s questions and concerns and assist in preparing to draft a contract for the arrangement that aligns with the needs and interests of the business.  


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