Distributorships Law and Legal Definition

A distributorship involves an agreement to market, usually in the distributor's name, during a limited period of time, within a specific territory and pursuant to agreed conditions, the products specifically sold to him by another party called supplier. Legitimate distributorships and franchises can be profitable forms of business enterprise. Examples include fast-food franchises and new car dealerships, which offer great opportunities to those willing to invest substantial amounts of money and time to operate such businesses. Distribution agreements may include clauses related to trademarks, sales quotas, liability for damge in transit, licensing, promotion of product sales, and other issues.