When you engage a distributor or a reseller, they will buy the products (could be either goods or services) from you then independently sell them with a mark-up to customers.
Distribution shares some similarities with agency but it has a different legal structure to agency and thus is not governed by the Commercial Agency Regulations. However without a clear agreement, sometimes the similarities between these two channels to market may cause confusion and the courts will look at the facts to establish the substance of the arrangements.
As this is normally a long-term arrangement, having an agreement in place will help to establish the mechanism for you to deal with operational, contractual and legal matters. For example, you may want to specify:
As distribution may involve cross-border trades, you should consider competition law issues when entering into a distribution arrangement. The contract should not include terms that could adversely impact competition in the relevant territory (e.g. price fixing, territorial restrictions or customer restrictions).