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Sub Distribution Agreement for Singapore

Sub Distribution Agreement Template for Singapore

A Sub Distribution Agreement under Singapore law establishes the legal framework for appointing a sub-distributor to sell and distribute products within a specified territory or market segment. This agreement outlines the relationship between the main distributor and sub-distributor, including rights, obligations, territory restrictions, pricing structures, and performance requirements. It incorporates Singapore's commercial laws and regulations, particularly the Contracts Act and Sale of Goods Act, while ensuring compliance with competition laws and sector-specific regulations.

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What is a Sub Distribution Agreement?

The Sub Distribution Agreement is essential for businesses seeking to expand their distribution network in Singapore and surrounding regions. It is commonly used when a primary distributor wishes to extend market reach by appointing additional distributors while maintaining control over product distribution channels. This document addresses key commercial aspects including territory rights, pricing mechanisms, minimum purchase requirements, and performance standards, while ensuring compliance with Singapore's regulatory framework. The agreement is particularly important in highly regulated sectors where control over distribution channels is crucial for maintaining product quality and brand reputation.

What sections should be included in a Sub Distribution Agreement?

1. Parties: Identification of main distributor and sub-distributor, including full legal names and registered addresses

2. Background/Recitals: Context of the agreement, including main distributor's rights to distribute and authority to sub-distribute

3. Definitions: Key terms used tHRoughout the agreement including Products, Territory, Principal Agreement

4. Appointment and Territory: Scope of sub-distribution rights and defined territory

5. Term and Termination: Duration of agreement and circumstances for termination

6. Products and Pricing: Specification of products covered and pricing structure

7. Obligations of Sub-Distributor: Key responsibilities and performance requirements

8. Supply and Orders: Process for ordering and delivery of products

9. Payment Terms: Payment conditions, currency, and timing

10. Intellectual Property: Rights and restrictions regarding use of trademarks and other IP

What sections are optional to include in a Sub Distribution Agreement?

1. Minimum Purchase Requirements: Specific targets or quotas for minimum performance levels

2. Marketing and Promotion: Marketing obligations and restrictions for product promotion

3. Training Requirements: Product training obligations for technical or complex products

4. After-Sales Service: Service and support requirements for products requiring ongoing support

5. Non-Compete Provisions: Restrictions on competing activities when exclusivity is important

What schedules should be included in a Sub Distribution Agreement?

1. Product Schedule: Detailed list of products covered by the agreement

2. Price List: Current pricing structure and terms

3. Territory Map: Detailed definition of geographic territory

4. Performance Targets: Specific sales targets or KPIs

5. Technical Specifications: Product specifications and requirements

6. Brand Guidelines: Rules for use of trademarks and branding

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Publisher

Genie AI

Cost

Free to use

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