Supply Agreements: Agency, Distribution & Licensing
Supply Agreements cover the Ts & Cs under which one party can sell or distribute products or services which belong to another.
Given that there are several types of agreement, it good to understand the differences between each. Let’s run through the various types here:
Agency agreement: the agent sells goods or services on behalf of the seller, but the customer’s contract is with the seller, not the agent. The agent does not own the seller’s goods.
Distribution agreement: the distributor sells goods that it has bought from the seller. The customer’s contract is with the distributor, not the seller.
Licence agreement: a “licensee” is granted the right to provide goods or services to customers, using the brand name or intellectual property belonging to the “licensor”. See Brand Licensing & IP for more information.
Supplier agreement: this documents the terms under which a supplier can supply goods or services. Typically, it covers matters such as pricing; payment terms; product warranties; retention of title clauses. Often, it comes in the form of a set of supplier terms and conditions.
Some contracts can be hybrids, containing elements of more than one of these types. For example, a licence agreement often has a distribution element to it, and elements of supplier terms & conditions will often form part of an agency agreement.
We will take care to talk you through the various options for your supply arrangements, so that you can make the decisions that suit you and your business best.