Many factors go into the creation of a great distributor agreement. Mistakes in a distributor agreement are almost invisible during the courtship between a distributor and a manufacturer. Unfortunately, those same mistakes grow into glaring errors at the end of a distribution partnership. In order to avoid problems at the time of termination, the creator of a distributor agreement must ensure that unsound clauses are not inserted and that particular phrases are not omitted. Here is a checklist of ten common mistakes to avoid when drafting your next distributor agreement.

1. Too Much Too Fast
2. Termination for Cause Only
3. Annual Termination and Semiautomatic Renewal
4. Exclusive or Nonexclusive
5. Frequency of Price Changes
6. Termination by Only One Party – Not Both
7. Frequency of Amendments
8. What Happens after Termination?
9. Comparison with Proven Industry Agreements
10. Leaving the Negotiation Process Strictly to Attorneys

Visit New Era Consulting to view expanded commentary on each of the 10 Distributor Agreement Mistakes and to learn more about Glen Balzer and his work as a Sales and Marketing Expert Witness.

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