Dealership agreements are made between a dealer and the product manufacturer whereby the former agrees upon to sell certain goods to the public following some rules and conditions laid down by the latter. Details of the products to be sold, its price tag are among the necessary features that should be present in a dealership agreement. These agreements are also a listing of the responsibilities that the dealer should carry out.
The following points are of utmost importance while constructing a dealership agreement-
- Inclusion: The agreement should contain all the details regarding the entire aspect of the business from both the parties. Each and every clause should be maintained properly and no space for assumptions should be left.
- Conciseness and lucidity: The dealership agreement should be composed of short, well-defined and precise sentences. The language should be free from jargons, to the extent possible, and should be constructed in a way which is understandable even to a layman.
- Legal documentation: As a dealership agreement is a legal document, clear mention of the legal proceedings to be taken should be mentioned as per extant laws.
These are the features that should be kept in mind while constructing a dealership agreement, irrespective of the goods in question.
Category: Dealership Agreements