Supply and Distribution Agreements

What is a Supply Contract?

A Supply Agreement (“Agreement”) regulates obligations between parties to sell and buy quantities of goods over a specified period of time. The Agreement may also establish the terms and conditions of how these goods may be on-sold.

What are the pros and cons of entering into a Supply Contract?

An Agreement can provide for longevity of commercial trading arrangements.

An Agreement gives the supplier of the goods control over the distribution of those goods.

Contact us to draft a Supply Contract for you, or review any existing ones you have in place.

What is a Distribution Agreement?

A distribution agreement is one made between a manufacturer and a supplier to distribute and/or sell items manufactured. The supplier may make a distribution agreement with separate stores selling the product that involves how goods will be merchandised or how much supplies will be available to the store. A distribution agreement may also include terms regarding advertising of a product.

Generally, the manufacturer pays a fee to enter into a distribution agreement with a supplier. However, a balanced distribution agreement will provide opportunities to make money for both the manufacturer and supplier.