Agreement for Appointment of a Dealer/Distributor for a City/Town/ Particular area

Updated atAugust 2010

This DEALERSHIP AGREEMENT is made on this _____day of _____, 201 __


_________________, a company organized and existing under the laws of India and having its Registered office at ____________________, India and Corporate office at __________, herein after referred to as "The Company"


____________________________, a partnership concern having its offices at _______________ acting through its ______________ partner, ____________, herein after referred to as "the Dealer".

The Company and Dealer hereinafter individually referred to as party and collectively as parties.


  1. The Company is carrying on the business of manufacturing and trading of _______________ products, more particularly described under Article 1.

  2. The Company proposes to appoint a Dealer of the said products for the city of __________ in India and the Dealer has accepted the dealership of the said products on the terms and conditions hereinafter appearing.

  3. The Company and the Dealer have proposed to execute this agreement recording the terms and conditions in the manner following.

    Now it is Agreed By and Between the Parties as Follows:

    1. Definitions: For the purposes of this Agreement, the following terms shall have the following meaning:

  4. "Customer" means an individual or an organization to which the Dealer sells the Products in the Territory.

  5. "Delivery" means the physical delivery of the Products to the Dealer, which shall be complete at the facility of The Company.

  6. "Effective Date" means the date on which The Company and the Dealer have signed this Agreement.

  7. "Products" means ____________________________ Products, such as __________________ manufactured and supplied by The Company.

  8. "Territory" means ________ City in the State ___________, India.

  9. "Technical Services" shall include technical training, technical demonstration and documents in connection therewith.

  10. "Trade Mark" means the Registered Trade Mark of The Company.

    2. Pricing:

    2.1 All purchases of the Products made by the Dealer shall be in accordance with The Company dealers'' price list in force at the time of delivery.

    2.2 Notwithstanding the foregoing, The Company may at any time, and from time to time, adjust the price as per its discretion, or to reflect changes, if any, either in the price or in the constituents of the Products.

    2.3 The Dealer shall make payment of the purchase price within 30 days of the date of invoice. The payment shall be made by way of cheque/demand draft payable at ___________.

    2.4 In case the cheque is dishonoured, due to any reasons whatsoever, an interest at the rate of 2% per month shall be charged by The Company to the Dealer till the time the payments are actually received.

    3. Transfer of Ownership:

    The ownership of the Products shall pass on to the Dealer, once the Delivery of the Products has been effected. The Dealer may, in case they so desire, have the Products inspected before the Delivery of the Products. The Company shall in no way be liable for any damage to the Products once the Delivery has been effected. e.g. damages caused during transportation, theft, natural causes etc.

    4. Sales Target and Incentive:

    4.1 Sales target for Dealer will be Rs. __________ (Rupees ________________ only) for the year ________. The Company will grant turnover incentive to the Dealer for achieving the agreed sales target.

    4.2 The monthly turnover incentive rebate applicable to the Dealer for the month shall be credited to the account of the Dealer in the following month.

    4.3 The Company reserves the right to review the sales target and incentives on an yearly basis.

    4.4 The incentives shall be as per the annexure to this Agreement.

    5. Technical Support:

    5.1 The Company shall provide the Dealer all the necessary technical support within reasonable means in order to ensure successful sale of the Product in the Territory. In this respect, The Company shall furnish the Dealer with reasonable number of bulletins, brochures, catalogues and other...

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