Okuzeka
Contract & Commercial Law vocabulary · Commercial Agreements

Distribution agreement

Meaning in contract & commercial law, with examples

nounCommon term

In contract & commercial law, distribution agreement means: A contract under which a distributor buys products from a manufacturer and resells them in its own name in an agreed territory.

In Turkish: distribütörlük sözleşmesi, dağıtım sözleşmesi

How it is used

Key terms are territory, exclusivity, minimum purchase targets, pricing, use of trademarks and termination. Competition law limits some restrictions, such as fixing resale prices. Unlike an agent, a distributor owns the goods and carries the commercial risk.

Example sentences

  1. Under the distribution agreement, the distributor has exclusive rights in Turkey and Azerbaijan.

  2. We terminated the distribution agreement because the minimum targets were not met.

Common collocations

  • exclusive distribution agreement
  • sign a distribution agreement
  • distribution territory
  • minimum purchase targets
  • agency agreementA contract under which an agent finds customers or makes sales on behalf of a principal, usually for a commission, without buying the goods itself.
  • franchiseA business arrangement in which the owner of a brand and business system lets others run outlets using its name, methods and support in return for fees.
  • supplierA business that provides goods or services to another business, usually under a supply agreement or individual purchase orders.
  • trademarkA sign such as a name, logo or slogan that identifies the goods or services of one business and distinguishes them from those of others.

More terms: Commercial Agreements

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not legal advice.