A dealership agreement format is a legal document that outlines the terms of the agreement between a dealer or a distributor & a vendor. The Agreement of Dealership includes the purpose of the contract. It is ground for operation and also includes sole dealership rights & exclusivity.
Depending on what rights, terms and conditions are set.
Dealer is the individual person who actively buys products/goods from manufacturers and sells them off. The dealer deals with the trade of a particular item or commodity.
For example, when you go to the nearest electronics shop to check out the latest LCD LED TVs, you’ll know you are talking to a dealer.
Dealers can sell all products and items of the competitor brands.
Dealers can make a profit out of selling at a higher price than what they purchased.
This agreement made a specific product, region, varying certain tenure to a long term. The difference between dealership and distributor agreements is the parties involved in the agreement.
The scope of this agreement: is mutual and effective for both parties, and it should be carefully drafted. agreement force the parties for a particular period wherein neither party can make similar deals with each other’s competitors. The agreement specifies a good, market, service, or territory.
Basic Dealership Agreement Checklist:
1. Name and Address of both the parties
2. Terms and conditions
3. Effective date
4. Ownership
5. Purpose of the agreement
6. Contract renewable clause
7. Termination policy
8. Supply of goods and services.
9. Geographical limits of the contract
10. Third-party involvement clause
You can download a Format from Smart Business Box to help you with professionally drafting your Dealership Agreement.
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