Distribution Agreement
Definition:
A "distribution agreement" is a contract between two parties: usually a supplier (the person or company that makes or owns a product) and a distributor (the person or company that sells or distributes that product). This contract outlines how the product will be marketed and sold, including details like pricing, territory (where it can be sold), and responsibilities of both parties.
Usage Instructions:
You can use the term "distribution agreement" when talking about business arrangements, especially in sales and marketing. It is often used in formal settings, such as business meetings, legal documents, or discussions about products.
Example:
- "The company signed a distribution agreement with a local retailer to sell their new line of organic snacks in the region."
Advanced Usage:
In more advanced contexts, you might discuss the terms of a distribution agreement regarding exclusivity (whether the distributor is the only one allowed to sell the product in a certain area) or performance metrics (how well the distributor needs to sell the product).
Word Variants:
- Distribute (verb): To give out or spread something over an area. - Distributor (noun): A person or company that sells products to retailers or directly to customers.
Different Meanings:
While "distribution agreement" specifically refers to contracts in business, the words "distribution" and "agreement" can have other meanings: - Distribution: Can refer to the act of sharing or spreading something, like distributing flyers. - Agreement: Can refer to any understanding between two or more parties, not just in business.
Synonyms:
- Sales agreement - Marketing agreement - Supply agreement
Idioms and Phrasal Verbs:
There aren't specific idioms or phrasal verbs that directly relate to "distribution agreement," but you might come across phrases like: - "Strike a deal" (meaning to come to an agreement, often used in business contexts) - "Hammer out an agreement" (meaning to work hard to reach an agreement)
Conclusion:
A distribution agreement is an important part of business that helps define how products will be sold and marketed.