The Simple Distribution Agreement is essential for businesses looking to establish a structured distribution relationship in the German market. This document is particularly relevant when a supplier wishes to appoint a distributor to sell their products in a specific territory under German law. It addresses key commercial aspects such as product supply, pricing, territorial rights, and parties' obligations while ensuring compliance with German commercial law and EU regulations. The agreement is suitable for both domestic and international distribution arrangements, providing flexibility to accommodate various business models while maintaining legal certainty. It's commonly used across different industries and can be adapted to specific sector requirements while maintaining its core structure.
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1. Parties: Identification of the supplier and distributor with full legal names and addresses
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and interpretation rules
4. Appointment and Territory: Scope of distributor's appointment and defined territory for distribution
5. Supply of Products: Terms and conditions for ordering, delivery, and acceptance of products
6. Prices and Payment: Pricing structure, payment terms, and invoicing procedures
7. Obligations of the Supplier: Supplier's commitments regarding product supply, support, and information
8. Obligations of the Distributor: Distributor's commitments regarding sales, marketing, and reporting
9. Intellectual Property Rights: Protection and usage rights of trademarks, patents, and other IP
10. Confidentiality: Protection of confidential information exchanged between parties
11. Term and Termination: Duration of agreement and circumstances for termination
12. Effects of Termination: Consequences and obligations following agreement termination
13. General Provisions: Standard legal clauses including notices, amendments, and governing law
1. Exclusivity: Used when granting exclusive distribution rights in the territory
2. Minimum Purchase Requirements: Include when setting specific sales targets or minimum order quantities
3. Marketing and Promotion: Detailed marketing obligations when specific promotional activities are required
4. Training and Support: Include when supplier provides specific training or technical support
5. Non-Competition: Used when restricting distributor from handling competing products
6. Product Warranty: Detailed warranty terms when standard terms are insufficient
7. Insurance: Specific insurance requirements beyond standard coverage
8. Data Protection: Detailed GDPR compliance terms when personal data is processed
9. Force Majeure: Detailed force majeure provisions when standard provisions are insufficient
1. Schedule 1 - Products: List of products covered by the distribution agreement
2. Schedule 2 - Territory: Detailed description of geographical territory and any exclusions
3. Schedule 3 - Prices: Price list and discount structure
4. Schedule 4 - Minimum Purchase Quantities: Details of any minimum purchase requirements or targets
5. Schedule 5 - Technical Specifications: Product specifications and technical requirements
6. Schedule 6 - Trademark Usage Guidelines: Rules for using supplier's trademarks and branding
7. Appendix A - Reporting Templates: Standard forms for regular reporting requirements
8. Appendix B - Service Level Agreement: Details of support and service levels if applicable
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