agency and distribution agreement
distributor agreements and agency agreements are two of the more common types of contracts used by businesses to establish a fiduciary relationship. a fiduciary relationship means that one party, typically the business initiating the contract, is legally bound to represent and act in the best interest of the other. distributor agreements operate on the principle that one business grants another business or individual the right to resell its good or services, under the assumption that the reseller will comply with specific terms and will not misrepresent either the original distributor or the product itself. these guidelines might say that the price is capped at a certain point or that the product must be sold with a limited warranty. these resellers are essentially independent contractors and not official representatives of the distributor, although they must act in accordance with the distributor's guidelines.