Out of all the templates available on the web Distribution Agreements are probably the worst type to use.
Anti-competitive behaviour – The Australian Consumer law prohibits anti-competitive behaviour, such as price fixing. Commonly people want to include minimum retail sale prices. See ACCC website article on Price Fixing.
Franchise code – Licences, Distribution Agreements and the like a prone to the inclusion of terms which push the business model into franchise territory. Granted this is far more common with intangible products than tangible ones. However, operating a franchise is a substantially more significant undertaking.
Insufficient detail – Distribution Agreements are complex documents. Seemingly simple concepts like delivery of goods it wrought with pitfalls. Consider, who is responsible for delivery, who is responsible for the payment of couriers, when does the ownership of goods change hands, what happens if goods are damaged in transit and who takes the goods if a party becomes insolvent before they are paid for?
Consumer Guarantees – the Australian Consumer Law contains the Consumer Guarantees which apply to a very wide array of products. Consumer Guarantees cannot be contracted out of and it is unlawful to purport to do so. That means, just about every US based template we have ever seen is unlawful.
