Distributor agreements (also known as distribution agreements) are legally binding contracts that formalize the relationship between a distributor and a supplier of goods or services. The agreement outlines the nature of the business relationship, delineates the terms under which goods or services are provided, and sets out each party’s rights and responsibilities. Such contracts are typically drafted to protect both parties while also limiting liability. Ultimately, they ensure that distributors have exclusive access to certain market areas and supply channels, encouraging fair competition and ensuring that appropriate customer service is provided.