The Dealer Purchase Agreement serves as a foundational document for establishing authorized dealership relationships in the Nigerian market. This agreement is essential when a manufacturer or supplier wishes to appoint dealers to distribute their products within specific geographical areas of Nigeria. The document comprehensively covers commercial terms, operational requirements, and compliance with Nigerian legislation, including the Sales of Goods Act and Federal Competition and Consumer Protection Act. It's particularly crucial for businesses expanding their distribution networks, as it provides clear framework for dealer obligations, territory rights, pricing structures, and performance expectations. The agreement helps protect both parties' interests while ensuring compliance with local regulations and industry standards.
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1. Parties: Identification of the supplier/manufacturer and dealer with full legal names and addresses
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Territory: Terms of dealer appointment and defined geographical territory for operations
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Product Orders and Delivery: Procedures for ordering products, minimum order quantities, and delivery terms
7. Prices and Payment Terms: Pricing structure, payment methods, and credit terms
8. Dealer Obligations: Core responsibilities of the dealer including sales targets and marketing requirements
9. Supplier Obligations: Core responsibilities of the supplier including product supply and support
10. Quality Standards: Product quality requirements and compliance with Nigerian standards
11. Intellectual Property: Usage rights for trademarks, logos, and other IP
12. Confidentiality: Protection of confidential information and trade secrets
13. Termination: Grounds and procedures for termination of the agreement
14. Governing Law: Specification of Nigerian law as governing law and jurisdiction
15. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments
1. Training and Support: Include when supplier provides specific training or technical support
2. Marketing and Promotion: Include when there are specific marketing requirements or cooperative advertising
3. Warranty Provisions: Include when dealing with products requiring specific warranty terms
4. After-Sales Service: Include when dealer is required to provide maintenance or repair services
5. Import/Export Provisions: Include when dealing with international trade
6. Non-Compete Clause: Include when restricting dealer from selling competing products
7. Insurance Requirements: Include when specific insurance coverage is required
8. Environmental Compliance: Include when dealing with products subject to environmental regulations
1. Schedule A - Product List: Detailed list of products covered under the agreement with specifications
2. Schedule B - Price List: Current prices and discount structures
3. Schedule C - Territory Map: Detailed description or map of authorized sales territory
4. Schedule D - Performance Targets: Specific sales targets and performance metrics
5. Schedule E - Technical Specifications: Detailed technical requirements and standards
6. Schedule F - Service Level Agreement: Specific service standards and response times
7. Appendix 1 - Standard Operating Procedures: Detailed procedures for ordering, returns, and warranty claims
8. Appendix 2 - Reporting Templates: Standard forms for sales reports and performance tracking
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