Agreement vs. Distributor Agreement?

Dealership agreements and distributor agreements is another set of words that people think are the
same. This is evident when searching online for dealership agreement samples. They may seem almost
the same but there are slight differences between the two.

1. Dealership Agreement

A dealership agreement usually takes place between a dealer and vendor or distributor.

Just like any other agreement or contract, the agreement provides an outline of the terms and
conditions about the particular type of products or services that is involved in the arrangement.

It includes the purpose of the agreement, the mode of payment to be used, when the products or goods
will be delivered, the duties and responsibilities that each party is expected to follow, and the grounds
for the agreement to be terminated.

2. Distributor Agreement

A distribution agreement, on the other hand, is between a distributor and a manufacturer, or a between
different distributors.

The agreement outlines how and when the products or goods are to be sold or the way the products
should be marketed by the parties involved in the agreement.

It includes the length of time of the agreement, the specific terms and conditions, the trademark rights,
the names of the parties involved, the specific areas where the distributors can operate, and many
more.

Both dealership and distributor agreements produce legal documents or legal contracts about the
transaction that took place between a dealer and vendor, or between a distributor and other multiple
parties. The factor that clearly sets a dealership agreement apart from a distributor agreement is the
fact that dealers are seen as retail distributors and that dealers get their supplies from distributors.