A contract which is made between a manufacturer and a dealer is known as a dealership contract. Any dealership contract is a formal arrangement between these parties wherein one agrees to transfer dealership of a good or entity to the other on the basis of certain amount of funds involved. Any dealership contract is a document which consists of certain legally binding terms and conditions and thus holds a lot of legal importance. In order to draft an effective dealership contract, following points must be taken care of:

  • A dealership contract document must be written down in a formal tone and the use of legal terms must be made often to give it a legal touch.
  • Any such contract must have the information about the effective date of contract, the termination date of contract and also the length of time for which the contract holds important or is in effect.
  • It is important to mention the names of the parties involved including the DEALER and the OWNER or COMPANY providing dealership in the contract. In addition to this, the details of the parties must also be written down. These details must include the names, addresses and the contact information of the parties.
  • The details of the dealership such as type of dealership, rules of dealership, cost of dealership etc must be mentioned clearly to avoid any confusion between the parties in the future.
  • The terms and conditions of the contract must be entered point wise in a well detailed manner. These terms and conditions must stress upon the kind of roles the parties are to play during the length of the contract.
  • The contract must have the signatures of the parties as well which makes sure that both the parties have agreed to all the terms and conditions.

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