Agreement Between Distributor and Dealer of On-Board Scale
Systems for Trucks and Trailers
This distributorship agreement is made this ______________________________
( date of agreement) , between _______________________________________________
(name of distributor) , a corporation organized and existing under the laws of the state of
________________________________, with its principal office located at ___________
________________________________________________________________________
___________________________________ (street address, city, county, state, zip code) ,
referred to herein as Distributor , and _________________________________________
(name of dealer) , a corporation organized and existing under the laws of the state of
_________________________________, with its principal office located at __________
________________________________________________________________________
______________ (street address, city, county, state, zip code) , referred to herein Dealer .
Whereas, Distributor desires to establish the Dealer as an authorized, Dealer for
the sale of _____________________________________ (brand name) On-Board
Scales for trucks and trailers (referred to herein as the Product or Products) ; and
Whereas Distributor and Dealer desire to set forth the respective duties,
obligations, and responsibilities of each in the sale of the Product by Distributor to the
Dealer and the sale and of these products by the Dealer; and
Whereas, Dealer has elected to enter into this agreement with Distributor with
confidence in Distributor’s integrity and expressed intention to deal fairly with its
Dealers , and with knowledge of the customer acceptance of products of Distributor ; and
Whereas, Distributor has elected to enter into this agreement with Dealer with
recognition that Distributor ’ s success depends on financially sound, responsible,
efficient, vigorous, and successful dealers whose business conduct is free of false,
deceptive or misleading advertising, merchandising, pricing and service practices, and
with confidence in Dealer’s integrity and ability, and in the Dealer’s expressed intention
to deal fairly with Distributor and its customers, and to perform and carry out Dealer’s
duties, obligations, and responsibilities as set forth in this agreement and
Whereas, it is the expectation of each of the parties that by entering into this
agreement , and by the full and faithful observance and performance of its duties,
obligations, and responsibilities, a mutually satisfactory relationship between them will
be established and maintained;
Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:
1. Rights Granted
Distributor hereby grants to Dealer a nonexclusive right, on the terms and
conditions contained below, to purchase, inventory, promote, and resell the Product.
2. Terms of Sale
All sales of the Product from Distributor to Dealer shall be made under and
subject to the provisions of this agreement at such prices and on such terms as
Distributor shall establish from time to time. Resale prices shall be fixed by Dealer ,
except that Distributor reserves the right to enter into fair trade a greements to the extent
permitted by federal and state laws.
3. Marketing Policies
Dealer will at all times maintain adequate inventories of Distributor’s Product
and will promote vigorously and effectively the sale of Distributor’s Product through
channels of distribution prevailing in Dealer’s primary marketing area in conformity with
Distributor’s established marketing policies and programs. Dealer will use its best efforts
to sell Distributor ’ s Product .
4. Merchandising Policies
Distributor will provide Dealer with merchandising assistance in the form of
advertising programs, product and sales training, and Dealer agrees to make full use of
such assistance in carrying out Distributor merchandising and sales promotion policies.
5. Product Warranty Policy Policies
A. Distributor ’ s Products are sold to Dealer at prices that contemplate that
such Products are free from defect in manufacture and workmanship at the time of sale.
If any Product is proved to Distributor’s satisfaction to have been defective at time of
sale, Distributor will make an appropriate adjustment in the original sales price of such
Product .
B. Distributor agrees to protect Dealer and hold Dealer harmless from any
loss or claim arising out of inherent defects in any of Distributor ’ s Products existing at
the time such Product . is sold by Distributor to Dealer , provided that Dealer gives
Distributor immediate notice of any such loss or claim and cooperates fully with
Distributor in the handling of the same. Dealer agrees to protect Distributor and hold
Distributor harmless from any loss or claim arising out of the negligence of Dealer ,
Dealer’s agents, employees, or representatives in the installation, use, sale, or servicing
of Distributor’s products.
6. Order Processing and Shipment Policies
Distributor will employ its best efforts to fill Dealer’s orders promptly on
acceptance, but reserves the right to allot available inventories as it deems best.
Distributor shall not be liable for failure to ship Distributor’s Product specified in any
accepted order because of strikes, differences with workers, inability to secure
transportation facilities, or other circumstances beyond its control. Dealer shall not be
liable for failure to accept shipments of Product ordered from Distributor when such
failure is due to strikes or any other cause beyond Dealer’s control, provided Distributor
receives notice in writing to suspend such shipments prior to delivery to carrier.
7. Financial Policies
It is the intent and understanding of the parties, and the essence of this agreement
that Dealer shall pay promptly all amounts due Distributor in accordance with terms of
sale extended by Distributor from time to time.
8. Use of Dealer’s Name
During the term of this agreement, Distributor will be allowed to identify Dealer
as an authorized Dealer of the Product of Distributor.
9. Relationship of the Parties
During the term of this agreement , the relation between Distributor and Dealer is
that of vendor and vendee. Dealer its agents and employees shall, under no
circumstances, be deemed agents or representatives of Distributor. Dealer will not
modify any of Distributor ‘ s Products without written permission from Distributor.
Neither Dealer nor Distributor shall have any right to enter into any contract or
commitment in the name of, or on behalf of the other, or to bind the other in any respect
whatsoever.
10. Term of Agreement
This agreement shall continue in full force and effect from and after the date as of
which this agreement has been executed until terminated by either party under the
provisions of Section 11.
11. Termination
Either party may terminate this agreement without cause by written notice given
to the other party not less than _________ (number) days prior to the effective date of
such notice.
12. Obligations on Termination
On termination of this agreement , Dealer shall cease to be an authorized Dealer
of Distributor and:
A. All amounts owing by Dealer to Distributor shall, notwithstanding prior
terms of sale, become immediately due and payable;
B. All unshipped orders shall be cancelled without liability of either party to
the other; and
C. Neither party shall be liable to the other because of such termination for
compensation, reimbursement, or damages on account of the loss of prospective profits or
anticipated sales, or on account of expenditures, investments, leases, or commitments in
connection with the business or good will of Distributor or the Dealer or for any other
reason whatsoever growing out of such termination.
13. No Waiver
The failure of either party to this Agreement to insist upon the performance of any
of the terms and conditions of this Agreement, or the waiver of any breach of any of the
terms and conditions of this Agreement, shall not be construed as subsequently waiving
any such terms and conditions, but the same shall continue and remain in full force and
effect as if no such forbearance or waiver had occurred.
14. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance with
the laws of the State of ________________________.
15. Notices
Any notice provided for or concerning this Agreement shall be in writing and
shall be deemed sufficiently given when sent by certified or registered mail if sent to the
respective address of each party as set forth at the beginning of this Agreement.
16. Mandatory Arbitration
Any dispute under this Agreement shall be required to be resolved by binding
arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party
shall select one arbitrator and both arbitrators shall then select a third. The third
arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the
rules of the American Arbitration Association then in force and effect.
17. Entire Agreement
This Agreement shall constitute the entire agreement between the parties and any
prior understanding or representation of any kind preceding the date of this Agreement
shall not be binding upon either party except to the extent incorporated in this
Agreement.
18. Modification of Agreement
Any modification of this Agreement or additional obligation assumed by either
party in connection with this Agreement shall be binding only if placed in writing and
signed by each party or an authorized representative of each party.
19. Assignment of Rights
The rights of each party under this Agreement are personal to that party and may
not be assigned or transferred to any other person, firm, corporation, or other entity
without the prior, express, and written consent of the other party.
20. Counterparts
This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute but one and
the same instrument.
WITNESS our signatures as of the day and date first above stated.
__________________________________ _________________________________
(Name of Distributor) (Name of Dealer)
By: ________________________________ By: ________________________________
___________________________________ ____________________________________
(P rinted Name & Office in Corporation) (P rinted Name & Office in Corporation)
___________________________________ ____________________________________
(Signature of Officer) (Signature of Officer)
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