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Simple Exclusive Distribution Agreement Template for Australia

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Key Requirements PROMPT example:

Simple Exclusive Distribution Agreement

"I need a Simple Exclusive Distribution Agreement for appointing a distributor to sell our industrial machinery products in Western Australia, with minimum annual purchase requirements of AUD 2 million and quarterly performance reviews starting March 2025."

Document background
The Simple Exclusive Distribution Agreement is a fundamental commercial contract used when a supplier wishes to grant exclusive rights to a distributor to sell their products within a specified territory in Australia. This document is particularly useful for businesses looking to establish a structured distribution channel while maintaining control over how their products are sold and distributed. The agreement complies with Australian legal requirements, including the Competition and Consumer Act 2010 (Cth), and contains essential provisions for managing the supplier-distributor relationship. It's designed to protect both parties' interests while establishing clear performance expectations, territorial rights, and operational procedures. This type of agreement is commonly used when entering new markets or restructuring existing distribution networks, and can be adapted for various industries while maintaining its core exclusive distribution principles.
Suggested Sections

1. Parties: Identifies and provides full legal details of the supplier and distributor

2. Background: Sets out the context of the agreement, including supplier's business, products, and intention to appoint distributor

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Appointment and Territory: Establishes exclusive distributor appointment and defines the geographical territory

5. Term and Renewal: Specifies initial term, commencement date, and renewal conditions

6. Distributor Obligations: Details core responsibilities including marketing, sales targets, and reporting requirements

7. Supplier Obligations: Outlines supplier's commitments regarding product supply, support, and training

8. Ordering and Supply: Describes process for ordering, delivery, and payment terms

9. Prices and Payment: Establishes pricing structure, payment terms, and price adjustment mechanisms

10. Intellectual Property: Covers trademark usage rights and restrictions

11. Confidentiality: Protects confidential information exchanged between parties

12. Termination: Details grounds for termination and post-termination procedures

13. General Provisions: Includes standard legal clauses like governing law, notices, and assignment

Optional Sections

1. Minimum Purchase Requirements: Used when specific minimum order quantities or values are required to maintain exclusivity

2. Sub-distributors: Include when distributor may be permitted to appoint sub-distributors

3. Marketing and Promotion: Detailed section when specific marketing commitments or cooperative advertising are required

4. Product Training: Include when products require technical knowledge and ongoing training

5. Non-Competition: Used when distributor should be restricted from representing competing products

6. Insurance Requirements: Include when specific insurance coverage is required

7. Import/Export Requirements: Required for international distribution arrangements

8. Product Warranties: Detailed warranty terms when beyond standard warranty provisions

9. After-Sales Service: Include when distributor must provide specific after-sales support

Suggested Schedules

1. Schedule 1 - Products: Detailed list and specifications of products covered by the agreement

2. Schedule 2 - Territory: Detailed description or map of the exclusive territory

3. Schedule 3 - Prices and Payment Terms: Price lists, discount structures, and detailed payment terms

4. Schedule 4 - Performance Targets: Specific sales targets and performance metrics

5. Schedule 5 - Trademark Usage Guidelines: Specific rules for using supplier's trademarks and branding

6. Schedule 6 - Reporting Requirements: Templates and specifications for required reports

7. Appendix A - Order Form Template: Standard form for placing orders

8. Appendix B - Technical Support Requirements: Details of required technical support and service levels

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































Clauses









































Relevant Industries

Consumer Goods

Industrial Equipment

Electronics and Technology

Automotive

Pharmaceuticals

Food and Beverage

Construction Materials

Medical Devices

Retail

Manufacturing

Wholesale Trade

Relevant Teams

Legal

Sales

Commercial

Operations

Supply Chain

Business Development

Distribution

Procurement

Compliance

Finance

Relevant Roles

Commercial Director

Sales Director

Business Development Manager

Distribution Manager

Supply Chain Manager

Legal Counsel

Contracts Manager

Operations Manager

Chief Commercial Officer

Regional Sales Manager

Procurement Manager

Channel Manager

General Manager

Chief Executive Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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