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A Distribution Agreement sets out the legal terms between a supplier who makes or owns products and the distributors who will sell them to customers. It covers how the distributor can market and sell the products, what territory they can operate in, and their sales targets.

Under Australian law, these agreements must address key competition rules, including exclusive dealing provisions in the Competition and Consumer Act. The agreement typically covers pricing structures, minimum purchase requirements, intellectual property rights, and quality control standards. Good agreements protect both parties while ensuring products reach the market effectively.

Use a Distribution Agreement when expanding your product's reach through third-party sellers or resellers in Australia. This becomes essential once you're ready to move beyond direct sales and need formal arrangements with distributors who will represent your brand and products in specific territories.

The agreement proves particularly valuable when working with multiple distributors, managing exclusive territories, or protecting intellectual property rights. It helps prevent channel conflicts, maintains pricing consistency, and ensures compliance with Australian competition laws. Having clear terms in place before starting distribution relationships prevents costly disputes and protects your brand reputation.

• Exclusive Distribution Contract: Grants sole rights to distribute products in specific territories, offering distributors maximum market protection
• Non Exclusive Distribution Agreement: Allows multiple distributors to operate in the same territory, creating healthy competition
• International Exclusive Distribution Agreement: Covers cross-border distribution with territory-specific terms and import/export provisions
• Agency And Distribution Agreement: Combines distribution rights with agency powers to negotiate sales on the supplier's behalf
• Distribution Agreement Contract: Standard agreement covering basic distribution terms, suitable for most domestic arrangements

• Manufacturers/Suppliers: Create and sign Distribution Agreements to control how their products reach consumers, protect brand reputation, and maintain quality standards
• Distributors: Review and negotiate terms to secure rights for selling products in specific territories, understanding their obligations and performance targets
• Commercial Lawyers: Draft and review agreements to ensure compliance with Australian competition laws and protect client interests
• Sales Managers: Help define territory boundaries, sales targets, and marketing requirements within the agreement
• Compliance Officers: Monitor adherence to agreement terms and ensure ongoing compliance with regulatory requirements

• Party Details: Gather full legal names, ABNs, and registered addresses of both supplier and distributor companies
• Product Specifics: List all products covered, including specifications, pricing structures, and minimum order quantities
• Territory Definition: Map out exact geographical boundaries and any exclusivity arrangements
• Performance Metrics: Set clear sales targets, reporting requirements, and review periods
• Legal Requirements: Check Competition and Consumer Act compliance using our platform's built-in guidance
• Payment Terms: Define pricing, payment schedules, and currency arrangements
• Duration Terms: Decide contract length, renewal options, and termination conditions

• Parties and Scope: Clear identification of supplier and distributor, with detailed product descriptions and territory definitions
• Distribution Rights: Exclusive or non-exclusive rights, permitted sales channels, and any territorial restrictions
• Performance Terms: Minimum purchase quantities, sales targets, and reporting requirements
• Intellectual Property: Trademark usage rights, brand protection measures, and confidentiality obligations
• Compliance Clauses: Competition law requirements, product standards, and regulatory obligations
• Term and Termination: Contract duration, renewal options, and grounds for ending the agreement
• Dispute Resolution: Australian jurisdiction choice, mediation procedures, and governing law

While Distribution Agreements and Contract Manufacturing Agreements both involve product supply chains, they serve distinct purposes in Australian business operations. A Distribution Agreement focuses on the selling and marketing of finished products, while a Contract Manufacturing Agreement covers the actual production process.

• Control and Ownership: Distribution Agreements maintain the supplier's brand control while allowing others to sell; Manufacturing Agreements transfer production control but keep intellectual property with the original company
• Party Responsibilities: Distributors handle marketing, sales, and customer relationships; Contract manufacturers focus on production specifications and quality standards
• Risk Management: Distribution Agreements address market risks and sales performance; Manufacturing Agreements focus on production risks and quality control
• Regulatory Focus: Distribution Agreements emphasize consumer law and competition compliance; Manufacturing Agreements prioritize product safety and manufacturing standards