A distributor purchases goods or products from a supplier and sells them to their customers. Ownership of the products (and consequently any risk) passes at each stage, from the supplier to the distributor and then from the distributor to the customer.
Distribution agreements can be a cost-effective way of scaling up a supplier’s business. However, the supplier needs to be aware of the potential risks involved (such as reputational damage) and this is why distribution agreements need to be carefully drafted. At Birch Law our commercial solicitors can assist with all aspects of a distribution agreement from initial advice to the preparation and amendment of a formal written agreement.
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