A dealership contract is an agreement between an organization and its dealers which is signed before the distribution of the products and services starts happening through the dealer. The names and address of the parties in the dealership contract needs to be mentioned. Aspects that need to be covered in the dealership contract are number of sales persons, sales targets, locations, supplies, handling of damages and defects, etc. The following guidelines will help you make a useful dealership contract.

Points to be kept in mind while preparing a dealership contract:

  • The dealership contract can start with the date of the contract, dealership name, and full address.
  • The selected dealership should be clearly mentioned e.g., standard package, expanded package, etc.
  • The start date of the dealership contract should be mentioned along with the time duration till which the contract will be applicable.
  • The duties of the dealership need to put clearly put into writing. This should also be in addition to the claims for damages and expenses that can be claimed by both the parties.
  • The authoriser for waiver or modifications of the terms of the agreement should be mentioned in the dealership contract.
  • The governing law that will come into force when the dealership contract is in any way violated needs to be a part of the dealership contract.
  • The dealership agreement needs to get the mutual consent of both the parties with the statement that the dealership contract is read, understood, and agreed upon by both the parties without any coercion or external force coming into play.
  • The process of dealing with defects or damages is a necessary part of the dealership so that such kind of supply chain is established in the agreement between both the parties.
  • The supplier, locations, sales targets should also be clearly documented in the dealership contract so that performance management and appraisal can be done accordingly.

Leave a Reply

Your email address will not be published. Required fields are marked *