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The purpose of an International Distribution Contracts is to establish one or more sales points within a geographical area in a foreign country from which goods and services can be offered to a specific clientele.

This type of contract enables suppliers - i.e. manufacturers of different products - to benefit from existing commercial facilities and to select their trading partners. This commercial contract model also has the advantage of enabling suppliers to impose sales methods and practices associated with their products or brands.

The international distribution contract is a framework agreement, which means that it establishes general obligations for each of the parties over a lengthy period and is supplemented by general conditions of sales  which are often annexed to the contract in order to specify the products and/or services in question, prices, delivery arrangements, etc.

There are different models of international distribution contracts made ​​by different companies and organizations whose purpose is to ease the negotiation and agreement between suppliers and distributors. 

Below, we offer a checklist of 30 key elements that must be clearly defined in an International Distribution Contract

International Distribution Contract Checklist

Contract date

Supplier´s warranty

Indentification of Parties

Distributor´s warranty

Product and Territory

Advertising and publicity

Obligatios of the Distributor

Commintment to inform the Supplier

Commitment not to compete

Commintment to informe the Distributor

Minimum sales objective

Early termination

Conditions of sale

Compensation for termination

Prices and discounts

Term of contract

Resale prices

Repurchase of products


Return of promotional material

External distribution nerwork

Inspection of facilities

Intellectula Property Rights

Assignment of contract

Minimum stock


Technical assistance


After-sales service and maintenance

Applicable legislation


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