Distributors, agents, resellers and OEM partners all share the
same commercial function of selling goods to end users. Thus,
although there are significant differences between the legal
statuses of each of these players, this article below treats all of
them collectively as "distributors".
Appointing a distributor involves significant inherent risks.
The drafting of the distribution agreement may help in mitigating
these risks and realizing the potential benefit of your
relationship.
While formulating distribution agreements you should pay special
attention to the following key issues:
Choose an Effective Distributor:Choosing
the right entity as the distributor of your products or services is
the most important point. You may appoint a distributor you
happened to come across, or that appears impressive. However, you
have to remember that you made the appointment so that your
products will be distributed and sold. The concern is that the
distributor will not act