Distribution by agreement refers to the practice of distributing goods or services through a mutually agreed upon method between two or more parties. This method involves a legal agreement between the parties involved, which outlines the terms and conditions of the distribution.

The agreement typically outlines the obligations of each party, including the responsibilities of the distributor and the supplier. It also outlines the terms of payment, including the payment method, payment frequency, and payment amounts.

One of the benefits of a distribution by agreement is that it allows for greater control over the distribution process. The parties involved can agree on specific terms, such as the territory in which the goods or services will be distributed, the delivery schedule, and the amount of inventory to be maintained.

Another benefit of distribution by agreement is that it can help to reduce risk. By agreeing on specific terms, the parties involved can avoid potential conflicts and disputes that may arise in the absence of a formal agreement.

To ensure the success of a distribution by agreement, it is important to establish a strong relationship between the parties involved. This can be achieved through open communication, regular meetings, and a commitment to working together to achieve mutual goals.

In addition, it is important to regularly review and update the agreement to ensure that it reflects any changes in the needs and priorities of the parties involved. This can help to address any potential issues before they become major problems.

Overall, distribution by agreement can be an effective way to distribute goods or services while minimizing risk and maximizing control. By establishing a strong relationship and regularly reviewing the agreement, parties can work together to achieve their goals and build a successful distribution network.