The Master Dealer Agreement serves as the primary contractual framework governing the relationship between manufacturers/principals and their authorized dealers in India. This document is essential when establishing a formal distribution network, particularly in sectors requiring structured dealer relationships with clear territorial rights, performance metrics, and quality standards. The agreement must comply with Indian legal requirements, including the Indian Contract Act, 1872, Competition Act, 2002, and relevant sector-specific regulations. A Master Dealer Agreement typically includes comprehensive provisions for product supply, pricing mechanisms, intellectual property usage, warranty obligations, and termination procedures, while allowing flexibility for business-specific requirements through schedules and appendices.
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1. Parties: Identification of the principal/manufacturer and the dealer with complete legal entity details
2. Background: Context of the agreement, business relationship overview, and purpose
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Territory: Scope of dealer appointment, territorial rights, and exclusivity terms
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Dealer Obligations: Core responsibilities including sales targets, service standards, and compliance requirements
7. Principal's Obligations: Manufacturer's commitments regarding product supply, support, and training
8. Ordering and Supply: Procedures for ordering, delivery, and acceptance of products
9. Prices and Payment: Pricing structure, payment terms, and invoicing procedures
10. Intellectual Property: Usage rights for trademarks, logos, and other IP
11. Warranties and Service: Product warranties and after-sales service obligations
12. Compliance and Records: Legal compliance requirements and record-keeping obligations
13. Confidentiality: Protection of confidential information and trade secrets
14. Termination: Grounds for termination and post-termination procedures
15. Governing Law and Dispute Resolution: Applicable law and dispute resolution mechanisms
1. Non-Compete: Restrictions on dealing with competing products, used when exclusivity is required
2. Insurance: Specific insurance requirements, particularly relevant for high-value products
3. Bank Guarantee: Financial security requirements, used for high-value dealings or credit arrangements
4. E-commerce Rights: Online sales provisions, relevant for dealers with digital presence
5. Sub-Dealer Appointments: Rights and procedures for appointing sub-dealers, used in multi-tier distribution
6. Marketing and Promotion: Specific marketing obligations and cost-sharing arrangements
7. Training Requirements: Detailed training obligations, important for technical products
8. Data Protection: Specific data handling requirements, crucial for dealers handling customer data
1. Product Schedule: List of authorized products and their specifications
2. Price List: Detailed pricing structure and dealer margins
3. Territory Description: Detailed description of authorized sales territory
4. Performance Targets: Specific sales targets and performance metrics
5. Standard Operating Procedures: Detailed operational procedures and requirements
6. Service Level Requirements: Specific service standards and response times
7. Warranty Procedures: Detailed warranty claim and service procedures
8. Reporting Formats: Ƶ for required periodic reports
9. Brand Guidelines: Specifications for use of trademarks and marketing materials
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