The Supply And Distribution Agreement is a crucial commercial contract used when a supplier wishes to establish a formal relationship with a distributor to sell and distribute their products in specific territories. This agreement is particularly relevant in the New Zealand market, where it must comply with local commercial law, including the Contract and Commercial Law Act 2017 and Fair Trading Act 1986. The document typically covers essential aspects such as appointment terms, territory rights, ordering processes, pricing structures, performance obligations, and quality standards. It's commonly used when businesses want to expand their market reach through authorized distributors while maintaining control over how their products are sold and distributed. The agreement provides legal protection for both parties and establishes clear operational frameworks for the business relationship.
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1. Parties: Identification of the supplier and distributor, including full legal names and addresses
2. Background: Context of the agreement, including supplier's business, distributor's business, and purpose of the arrangement
3. Definitions: Defined terms used throughout the agreement
4. Appointment and Territory: Terms of distributor appointment and defined territory for distribution rights
5. Supply Obligations: Supplier's obligations regarding product supply, lead times, and delivery terms
6. Distribution Rights and Obligations: Distributor's rights and obligations, including sales targets and marketing requirements
7. Ordering Process: Procedures for placing and fulfilling orders
8. Prices and Payment: Pricing structure, payment terms, and invoicing procedures
9. Product Quality and Compliance: Quality standards, warranties, and compliance requirements
10. Intellectual Property: IP rights, licensing, and usage restrictions
11. Term and Termination: Duration of agreement and termination provisions
12. Confidentiality: Protection of confidential information
13. Liability and Indemnity: Risk allocation between parties
14. Force Majeure: Provisions for unforeseen circumstances affecting performance
15. Dispute Resolution: Procedures for resolving disputes
16. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Minimum Purchase Requirements: Include when specific purchase quotas are required
2. Marketing and Promotion: Include when specific marketing obligations are imposed on distributor
3. Training Requirements: Include when product complexity requires specific training
4. After-Sales Service: Include when product requires ongoing service support
5. Non-Competition: Include when restricting distributor from competing activities
6. Insurance Requirements: Include when specific insurance coverage is required
7. Data Protection: Include when personal data processing is involved
8. Import/Export Compliance: Include for international distribution arrangements
9. Product Development: Include when future product development collaboration is anticipated
10. Environmental Compliance: Include when environmental regulations significantly impact the business
1. Product Schedule: Detailed list and specifications of products covered by the agreement
2. Price List: Current pricing structure and terms
3. Territory Map: Detailed description or map of authorized distribution territory
4. Performance Targets: Specific sales targets and performance metrics
5. Service Level Agreement: Detailed service standards and response times
6. Technical Specifications: Detailed technical requirements and standards
7. Trademark Usage Guidelines: Rules for use of supplier's trademarks and branding
8. Returns Policy: Procedures for handling product returns and warranties
9. Approved Sub-distributors: List of authorized sub-distributors if permitted
10. Commission Structure: Detailed commission calculations if applicable
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