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Dealer Agreement for Australia

Dealer Agreement Template for Australia

An Australian Dealer Agreement is a comprehensive commercial contract that establishes and governs the relationship between a principal/supplier and a dealer who will sell or distribute the principal's products or services. The agreement operates under Australian federal and state laws, particularly the Competition and Consumer Act 2010 and relevant state-specific legislation. It details the appointment terms, territorial rights, performance requirements, ordering processes, pricing structures, and operational procedures while ensuring compliance with Australian consumer protection and competition laws.

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What is a Dealer Agreement?

The Dealer Agreement is a crucial commercial document used to establish and regulate the relationship between a supplier/manufacturer and a dealer who will market and sell the supplier's products or services in Australia. This agreement type is commonly used across various industries where products are sold through dealer networks, from automotive to industrial equipment. The document needs to comply with Australian legal requirements, including the Competition and Consumer Act 2010, state-specific fair trading laws, and industry-specific regulations. The Dealer Agreement typically covers essential aspects such as territory rights, performance targets, ordering procedures, pricing structures, marketing requirements, and termination provisions. It's particularly important in protecting both parties' interests while ensuring compliance with Australian competition law, consumer protection requirements, and industry standards.

What sections should be included in a Dealer Agreement?

1. Parties: Identification and details of the principal/supplier and the dealer

2. Background: Context of the agreement, brief description of the business relationship and purpose

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Appointment and Territory: Terms of dealer appointment, territory definition, and exclusivity provisions

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Dealer Obligations: Core responsibilities of the dealer including sales targets, service standards, and reporting requirements

7. Principal Obligations: Core responsibilities of the principal including supply commitments and support services

8. Ordering and Supply: Procedures for ordering products, delivery terms, and supply chain management

9. Prices and Payment: Pricing structure, payment terms, and invoicing procedures

10. Marketing and Branding: Requirements for marketing, use of trademarks, and brand standards

11. Training and Support: Principal's commitments for dealer training and ongoing support

12. Reporting and Audit: Regular reporting requirements and audit rights

13. Intellectual Property: IP ownership, licenses, and usage rights

14. Confidentiality: Protection of confidential information and trade secrets

15. Termination: Grounds for termination and termination procedures

16. Post-Termination: Obligations and rights after agreement termination

17. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

What sections are optional to include in a Dealer Agreement?

1. Minimum Performance Requirements: Specific performance metrics and consequences of non-achievement, used when strict performance monitoring is required

2. Stock Management: Detailed inventory management requirements, important for dealers handling physical products

3. After-Sales Service: Service and warranty obligations, essential for technical or durable products

4. Insurance Requirements: Specific insurance obligations, important for high-value products or high-risk activities

5. Customer Data Management: Specific provisions for handling customer data, essential when significant customer data is shared

6. Anti-Corruption Compliance: Detailed compliance requirements for international dealings or regulated industries

7. Sub-Dealers: Rules regarding appointment of sub-dealers, if permitted

8. Product Development: Provisions for dealer involvement in product development or customization

9. Financial Security: Requirements for bonds, guarantees, or other financial security

10. Competition Restrictions: Non-compete and other restrictive covenants, if applicable under competition law

What schedules should be included in a Dealer Agreement?

1. Products and Services: Detailed list of products/services covered by the agreement

2. Territory Map: Detailed description or map of the authorized territory

3. Price List: Current pricing structure and dealer margins

4. Performance Targets: Specific sales targets and performance metrics

5. Marketing Guidelines: Detailed marketing and branding requirements

6. Technical Requirements: Technical specifications and standards for product handling

7. Training Program: Details of required training programs and certifications

8. Service Level Agreement: Detailed service standards and response times

9. Reporting Templates: Standard forms for regular reporting requirements

10. Approved Sub-Dealers: List of approved sub-dealers if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use

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