Distributor/Reseller Assignment (A228)

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Who can use this Distribution Business Transfer Agreement?

This distribution business transfer  is for use when one distributor transfers the business to another.

There are three parties to the agreement: the manufacturer/supplier, the existing distributor and the new distributor.

We also supply two forms of  Distributor Appointment: A117 written from the principal’s point of view  and A118, which is more distributor-friendly.

What is this  Agreement for?

It is a formal record of the distribution business transfer  to a new distributor.  The aim is to ensure continuity of the business without interruption.  It is very short and does not deal with any of the complexities that might occur in some situations.

What are the main issues?

As the transfer of a distribution business needs the consent of the principal – i.e. the manufacturer or supplier of products –  the consent of the principal  is needed.  This is given by the supplier being a party to the agreement. In some cases, the supplier is likely to have selected the new distributor.

The new distributor needs to do due diligence on the business before entering into the assignment agreement. Under our template, the new distributor takes on all existing liabilities as well as the benefits becoming the supplier’s reseller.

What detailed terms does the reseller assignment contain?

The agreement contains:

  • definitions
  • assignment
  • binding terms and conditions
  • outstanding orders
  • confidentiality
  • governing law

For more information on each of these sections, see our Explanatory Notes  which you will  receive when you download the document from our website.

For information on signing documents see our Contract Signing page

When I download the document, can I change it and/or use it more than once?

Yes, all ContractStore’s templates are in MS Word and you can use the contract on more than one project. For more information, watch the video on this page of our website or see our FAQs

Legal support

ContractStore supplies templates and is not a law firm.  But all our templates are written by experienced lawyers so we can arrange legal assistance for customers who need special terms in one of our documents or a bespoke template. . For more information see our Legal Services page.

And if you want to contact us see our Contacts page.

 

 

If you have any questions about a contract and/or want to see the Explanatory Notes before you buy, please let us know by using our contact form

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