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SALES & CUSTOMER CONTRACTS

Distributor / Dealer Agreement

Use when you appoint a third party to buy and resell your products in a defined territory. Choose exclusive or non-exclusive; keep resale prices as recommendations only, and limit any non-compete to the term of the agreement.

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Laws this relies on

  • Indian Contract Act, 1872 · Section 27Agreements in restraint of trade are void — a non-compete can bind only during the term, not after it ends.
  • Competition Act, 2002 · Section 3(4)Exclusive distribution and resale price maintenance are void only if they cause an appreciable adverse effect on competition — so prices are kept "recommended".
  • Trade Marks Act, 1999Distributor's use of the brand is permitted only as licensed, under the principal's control.
  • Legal Metrology (Packaged Commodities) Rules, 2011Pre-packaged goods cannot be sold above the declared MRP.

How to execute

Print on non-judicial stamp paper of the value your state requires (or e-stamp), then sign with witnesses.

Print on non-judicial stamp paper or an e-stamp certificate of the value prescribed by the Stamp Act of the state where it is signed — stamp duty varies by state. Both parties should initial every page and sign before two witnesses.

Click anywhere in the letter to edit it. Changes to the form keep flowing in.

This is a general template, not legal advice. Laws, stamp duty and procedures vary by state and change over time — have a qualified advocate review it for your facts before signing or sending.