Simplified Distribution Contract

Simplified Distribution Contract Template for Indonesia

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Key Requirements PROMPT example:

"I need a Simplified Distribution Contract for my Indonesian cosmetics company to appoint an exclusive distributor in Jakarta and surrounding areas, with the agreement to start from March 2025 and include minimum purchase requirements."

Document background

The Simplified Distribution Contract is specifically designed for businesses seeking to establish distribution relationships in Indonesia without the complexity of a full-scale distribution agreement. This document is particularly valuable for small to medium-sized enterprises, new market entrants, or companies testing distribution channels in Indonesia. It includes essential provisions required by Indonesian law while maintaining accessibility and clarity. The agreement covers key aspects such as territory rights, ordering processes, and basic commercial terms, ensuring compliance with Indonesian regulations including Law No. 7 of 2014 on Trade and relevant Ministry of Trade regulations. It's structured to be easily understood while providing adequate protection for both parties' interests, making it an ideal starting point for establishing distribution relationships in the Indonesian market.

Suggested Sections

1. Parties: Identification of the supplier/manufacturer and distributor, including full legal names, registration numbers, and addresses

2. Background: Brief context of the business relationship and purpose of the distribution agreement

3. Definitions: Key terms used throughout the agreement including 'Products', 'Territory', 'Intellectual Property Rights', etc.

4. Appointment and Territory: Formal appointment of distributor and definition of the geographic territory covered

5. Rights and Obligations: Core responsibilities of both parties including distribution rights, minimum purchase requirements, and service standards

6. Product Orders and Delivery: Process for ordering products, delivery terms, and related logistics

7. Prices and Payment: Pricing structure, payment terms, and currency specifications

8. Term and Termination: Duration of the agreement and circumstances for termination

9. Intellectual Property: Protection and usage rights of trademarks, logos, and other IP

10. Confidentiality: Protection of confidential information shared between parties

11. Governing Law: Specification of Indonesian law as governing law and jurisdiction

12. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Marketing and Promotion: Requirements for marketing activities and brand promotion - include if distributor will handle marketing

2. Training and Support: Details of product training and technical support - include for technical or complex products

3. Non-Competition: Restrictions on dealing with competing products - include if exclusivity is important

4. Performance Targets: Specific sales targets and consequences - include if performance metrics are crucial

5. Insurance: Insurance requirements - include for high-value or high-risk products

6. Data Protection: Data handling and privacy requirements - include if personal data is processed

7. Force Majeure: Provisions for unforeseen circumstances - include for longer-term agreements

8. Import/Export Compliance: Customs and trade compliance - include for international distribution

Suggested Schedules

1. Product List: Detailed list of products covered by the agreement, including specifications and prices

2. Territory Map: Visual representation of the distribution territory

3. Service Level Agreement: Detailed performance metrics and service standards

4. Commission Structure: Detailed breakdown of pricing and commission calculations

5. Trademark Usage Guidelines: Specific rules for using the supplier's trademarks and branding

Authors

Alex Denne

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Consumer Goods

Electronics

Food and Beverage

Pharmaceuticals

Automotive Parts

Fashion and Apparel

Construction Materials

Industrial Equipment

Cosmetics

Home Appliances

Medical Devices

Agricultural Products

Software and Digital Products

Relevant Teams

Legal

Commercial

Sales

Supply Chain

Operations

Business Development

Procurement

Distribution

Compliance

International Trade

Relevant Roles

Commercial Director

Sales Manager

Business Development Manager

Supply Chain Manager

Distribution Manager

Legal Counsel

Procurement Manager

Operations Director

Country Manager

Regional Sales Director

Contract Administrator

Channel Manager

Trade Compliance Officer

General Manager

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Authors

Alex Denne

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