A distributor, on the other hand, actually buys the goods from the manufacturer, and can therefore set its own prices and terms. The manufacturer has fewer headaches when selling to a distributor. Even so, the manufacturer still has a strong interest in what other goods the distributor sells. Whether the seller deals through an agent or a distributor, the rights and responsibilities of the parties should be clearly set out in writing. The identities of the parties.
Legal entities can declare bankruptcy.
So can individuals, but it's more difficult. The duration of the agreement. Many countries limit the ability of the principal to end an agent or distributor agreement. This prevents an unscrupulous manufacturer, who allows an agent or distributor to develop a market, from snatching it away. This is one of the several areas in which consultation with an international trade lawyer is critical, since the rules regarding agents and distributors differ dramatically from country to country.