A distribution agreement is a legally binding contract between two parties, typically a manufacturer and a distributor, that outlines the terms and conditions for the distribution of goods or services. This agreement specifies the rights and responsibilities of each party, including the scope of distribution, pricing, payment terms, and any exclusivity or territorial restrictions. It serves as a crucial tool for establishing a mutually beneficial relationship between the manufacturer and the distributor, ensuring the efficient and effective distribution of products to the intended market. A well-crafted distribution agreement is essential for maintaining a successful and sustainable distribution network.