An independent person or legal entity that sell goods locally on behalf of a principal. Distributors can be distinguished from agents as distributors buy the goods in their own name, then re-sell them at prices which they have some liberty to set. Distributorship is frequently based on a contract that grants the distributor exclusivity for a specific territory. Some of the main clauses of this type of contracts are: products and territory, exclusivity, non-competition, prices, delivery and payment conditions, promotional activities, services etc. In international markets, relationships between distributors and its providers are governed through an International Distribution Contract. See agent; sales representative.