International Distribution Agreement

---
name: international-distribution-agreement
language: en
description: >-
  Drafts an international distribution agreement covering appointment, territory,
  exclusivity, Incoterms, export controls, sanctions, anti-corruption, IP
  licensing, and dispute resolution. Use when drafting or revising a cross-border
  distribution agreement, exclusive distributor appointment, or global channel
  contract. Triggers: international distribution, exclusive distributor,
  Incoterms, export controls, sanctions, anti-corruption, CISG opt-out.
tags:
  - agreement
  - drafting
  - regulatory
  - transactional
---

# International Distribution Agreement

Cross-border distribution agreement allocating commercial risk, regulatory responsibility, and IP protection between supplier and distributor.

## Prerequisites

Collect before drafting:

1. **Parties** — legal names, entity type, jurisdiction, registration numbers, signing authority
2. **Products** — specs, regulatory classification, IP ownership, trademarks, certifications
3. **Territory** — countries/regions, customer carve-outs, online/direct sales rules, sub-distributor rights
4. **Commercial terms** — pricing model, currency, credit support, minimums/targets, forecast cadence
5. **Logistics** — Incoterms (current ICC edition), named place/port, inspection timeline, insurance
6. **Compliance** — export/import regimes, sanctions lists, anti-bribery laws, data protection triggers
7. **Disputes** — governing law, forum/arbitration seat, language, interim relief preferences

## Workflow

1. **Intake** — capture assumptions and open variables; confirm with user
2. **Appointment** — exclusivity, territory, channels, reserved customers, performance thresholds
3. **Transaction mechanics** — orders, acceptance, pricing, payment/security, delivery, risk/title
4. **Compliance** — export controls, sanctions, anti-corruption, product regulatory, data protection
5. **IP/brand** — license scope, approvals, infringement handling, confidentiality, post-term cleanup
6. **Exit and disputes** — term/renewal, termination, sell-off, governing law, CISG, arbitration
7. **Boilerplate** — independent contractor, assignment/change of control, force majeure, notices

## Clause Map

| Clause | Must Cover | Options |
|---|---|---|
| Appointment & Territory | Exclusivity, carve-outs, KPI targets | Non-exclusive; exclusive with performance cure |
| Orders | PO requirements, acceptance window | Modify/cancel rules, fees |
| Pricing | Adjustments, notice, price protection | FX pass-through, raw material triggers |
| Payment | Method, due date, late interest | LC/standby LC, advance payment |
| Delivery | Incoterms, risk transfer, title | Supplier or distributor insurance |
| Inspection/Warranty | Inspection window, remedies | Repair/replace/refund |
| Compliance | Export controls, sanctions, anti-corruption | Audit rights, termination triggers |
| IP & Brand | License scope, approvals, goodwill | Prohibit third-party registrations |
| Confidentiality | Scope, duration, trade secrets | Survival period |
| Term/Termination | Term, renewal, cure periods | Immediate termination for sanctions breach |
| Post-Term | Sell-off, returns, support | Customer warranty handling |
| Liability/Indemnity | Caps, exclusions, carve-outs | IP/compliance carve-outs from cap |
| Disputes | Governing law, CISG, arbitration | Courts, interim relief |

## Template Skeleton

1. Definitions
2. Appointment and Territory
3. Products; Forecasts
4. Orders; Acceptance; Cancellations
5. Pricing; Taxes/Duties; Adjustments
6. Payment Terms; Credit Support
7. Delivery; Incoterms; Title/Risk
8. Inspection; Returns; Warranty
9. Compliance: Export/Import; Sanctions; Anti-Corruption; Regulatory; Data
10. IP License; Brand Use; Infringement
11. Confidentiality; Records; Audit
12. Indemnities; Limitation of Liability
13. Term; Renewal; Termination
14. Post-Term Obligations; Sell-Off
15. Dispute Resolution; Governing Law; CISG
16. General: Independent Contractor; Assignment; Force Majeure; Notices; Amendments; Counterparts
17. Signatures

## Pitfalls and Checks

- Exclude CISG by default — include only if parties affirmatively opt in
- Specify Incoterms with named place/port **and** ICC edition year
- If exclusivity granted, define performance thresholds, measurement period, and cure mechanism
- Allocate import duties, VAT, and clearance responsibilities explicitly
- Require ongoing sanctions screening for parties and sub-distributors
- Include anti-corruption representations with audit/records obligations
- Specify which party is registrant/applicant for product regulatory approvals
- Add cross-border data transfer mechanism if personal data is involved
- Carve out IP, confidentiality, and compliance breaches from liability caps
- Provide sell-off period with payment obligations and brand-use limits post-termination