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Distributor

Is an independent person or legal entity that buys noncompeting products or even product lines, warehouses them so they can resell them to retailers or directly to the end users or customers.

Moreover the distributor has a contract that grants him exclusivity for a certain territory.

Among some of the main clauses of this type of contracts we can find: products and territory, exclusivity, non-competition, prices, delivery and payment conditions, promotional activities, services etc.

Because of that most distributors usually provide strong manpower and even cash support to the supplier or manufacturer’s promotional efforts.