However, another type of distribution agreement is the sole distributor agreement where the organization that provides the goods for distribution supplies it to only one distributor also known as an exclusive distributor. Some common industries that prefer the sole distributor agreement are:
All the types of distribution contract incorporate the following necessary terms and conditions for distributorship such as:
Among the many types of distribution agreement, an exclusive distribution agreement is where the distributor is given exclusive rights to distribute a specific product at a particular area. No other distributor will be permitted to operate in that demarcated area where the former distributor operates under exclusive rights granted to them by the exclusive distribution agreement.
This brings us to the supplier exclusivity agreement which is the opposite of an exclusive distribution agreement in the sense that the distributor in this case can only acquire the goods from one organization or entity vested with exclusive rights to supply the goods under this contract.
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