Distribution Agreement

A Distribution Agreement is a contract that sets out the terms and conditions of the distribution arrangement between a manufacturer or supplier of a product and an Australian or overseas distributor that wants to purchase the supplier’s goods to sell.

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Last updated May 23, 2025

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Suitable for Australia

Distribution Agreement

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What is a distribution agreement?

A distribution agreement is a contract that sets out the terms for one party to buy goods from a supplier and resell them, usually for their own profit.
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When should you use a distribution agreement?

Use a distribution agreement when a manufacturer or supplier wants to appoint a distributor to purchase and resell their products, rather than appointing an agent or forming a partnership.
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What should be in a distribution agreement?

It should include each party’s rights and obligations, whether the arrangement is exclusive or non-exclusive, and terms for ordering, payment, and termination.
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Frequently asked questions

How does this differ from an agency agreement?

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Can this agreement be used for international distribution?

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What are the key protections for suppliers?

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Does this agreement create a partnership or agency relationship?

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Who should sign the agreement?

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Is this agreement suitable for all Australian states and territories?

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What are the main risks of using this agreement?

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View Sample Distribution Agreement

Distribution Agreement
risk level indicator at Medium level

The Legal Risk Score of a Distribution Agreement Template is Medium

Our legal team have marked this document as medium risk considering:

  • The specifications can be easily changed.
  • The obligations coincide with the performance of the services, and few obligations extend beyond that.
  • The agreement is a component of a potentially large commercial partnership with a range of potential liabilities.

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