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Exclusive Distribution Letter Template for Australia

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Key Requirements PROMPT example:

Exclusive Distribution Letter

"I need an Exclusive Distribution Letter for appointing an Australian distributor for our premium skincare products, with exclusive rights in New South Wales and Victoria, including minimum quarterly purchase requirements and a two-year term starting March 1, 2025."

Document background
The Exclusive Distribution Letter is commonly used in Australian business contexts when a supplier wishes to appoint an exclusive distributor for their products in a specific territory. This document type offers a more streamlined alternative to a comprehensive distribution agreement while still maintaining legal effectiveness. It typically includes essential commercial terms, territorial rights, performance expectations, and basic obligations of both parties. The letter format is particularly suitable for businesses that want to quickly establish distribution arrangements while maintaining the option to transition to a more detailed agreement later. The document must comply with Australian competition law, particularly the Competition and Consumer Act 2010, especially regarding exclusive dealing provisions. It's commonly used for both domestic and international distribution arrangements where Australian law governs the relationship.
Suggested Sections

1. Letterhead and Date: Company letterhead and current date

2. Recipient Details: Full name, title, and address of the distributor

3. Salutation: Formal greeting to the recipient

4. Introduction: Brief introduction identifying the parties and purpose of the letter

5. Appointment and Territory: Clear statement of exclusive distributor appointment and defined territory

6. Product Range: Identification of products covered by the distribution arrangement

7. Term: Duration of the exclusive distribution arrangement

8. Commercial Terms: Key commercial conditions including pricing, minimum purchase requirements, and payment terms

9. Key Obligations: Core responsibilities of both supplier and distributor

10. Termination Rights: Basic termination provisions and notice requirements

11. Acceptance Mechanism: Method for distributor to indicate acceptance of the terms

12. Closing: Formal closing, signature block for supplier

Optional Sections

1. Performance Targets: Include when specific sales targets or KPIs are required for maintaining exclusivity

2. Marketing Requirements: Add when specific marketing obligations or cooperative advertising arrangements are needed

3. Training Provisions: Include when product complexity requires specific training commitments

4. Sub-distributor Rights: Add when the distributor may need to appoint sub-distributors

5. Intellectual Property Usage: Include when branded products or trademarks require specific usage guidelines

6. Post-Termination Obligations: Add when specific post-termination requirements need to be outlined

7. Confidentiality: Include when sensitive information will be shared

8. Governing Law Statement: Add when dealing with interstate or international parties

Suggested Schedules

1. Product Schedule: Detailed list of products covered by the distribution arrangement, including specifications and pricing

2. Territory Map: Visual representation or detailed description of the exclusive territory

3. Price List: Current pricing structure and any volume-based discounts

4. Performance Metrics: Specific targets or KPIs if referenced in the main letter

5. Approved Customer List: If distribution is limited to specific customer segments or accounts

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






















Clauses




















Relevant Industries

Consumer Goods

Electronics

Automotive

Pharmaceuticals

Food and Beverage

Industrial Equipment

Software and Technology

Fashion and Apparel

Medical Devices

Construction Materials

Luxury Goods

Sporting Goods

Chemical Products

Agricultural Products

Relevant Teams

Legal

Commercial

Sales

Business Development

Operations

Supply Chain

Distribution

International Trade

Procurement

Compliance

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Distribution Manager

Channel Manager

Legal Counsel

Contract Manager

Supply Chain Manager

Operations Director

Regional Sales Manager

Export Manager

Commercial Manager

Procurement Manager

General Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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