A Dealer Agreement is essential for businesses operating distribution networks in Malaysia, establishing the framework for authorized dealers to sell and distribute products in specified territories. This agreement type is commonly used when a manufacturer or supplier wants to expand their market reach through local dealers while maintaining control over their brand and distribution network. The document addresses key aspects required under Malaysian law, including territorial rights, performance standards, intellectual property protection, and compliance with local regulations such as the Competition Act 2010 and Consumer Protection Act 1999. It's particularly important for international companies entering the Malaysian market through local dealers, as it helps ensure compliance with local legal requirements while protecting the principal's commercial interests.
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1. Parties: Identifies and provides full details of the principal company and the dealer
2. Background: Sets out the context of the agreement and basic premise of the dealer relationship
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Territory: Specifies the nature of appointment (exclusive/non-exclusive) and defined territory
5. Rights and Obligations of the Dealer: Details the dealer's primary responsibilities and commitments
6. Rights and Obligations of the Principal: Outlines the principal's commitments and support to be provided
7. Product Orders and Delivery: Specifies the ordering process, minimum orders, and delivery terms
8. Prices and Payment Terms: Details pricing structure, payment terms, and any applicable discounts
9. Performance Standards: Sets out required performance metrics and quality standards
10. Intellectual Property Rights: Governs the use of trademarks, logos, and other IP
11. Confidentiality: Protects confidential information of both parties
12. Term and Termination: Specifies duration, renewal terms, and termination provisions
13. Post-Termination Obligations: Details obligations and restrictions after agreement ends
14. Governing Law and Dispute Resolution: Specifies Malaysian law as governing law and dispute resolution mechanism
1. Marketing and Promotion: Required when dealer has specific marketing obligations or restrictions
2. Training Requirements: Include when specific training or certification is required for dealer staff
3. After-Sales Service: Necessary when dealer must provide maintenance or repair services
4. Insurance Requirements: Include when specific insurance coverage is mandatory
5. Non-Compete Provisions: Add when restricting dealer from representing competing products
6. Data Protection: Required when dealer will handle significant customer data
7. Compliance with Anti-Corruption Laws: Important when dealing with government contracts or high-risk territories
8. Force Majeure: Include for protection against unforeseen circumstances
9. Bank Guarantee/Security: Include when financial security is required from dealer
1. Products and Price List: Detailed list of authorized products and pricing structure
2. Territory Map: Detailed description or map of authorized territory
3. Performance Targets: Specific sales targets and performance metrics
4. Technical Specifications: Product specifications and technical requirements
5. Brand Guidelines: Guidelines for use of trademarks and marketing materials
6. Service Level Requirements: Detailed service standards and response times
7. Warranty Terms: Standard warranty terms for products
8. Commission Structure: Detailed breakdown of commission calculations if applicable
9. Required Reports: Templates and specifications for required reporting
Relevant legal definitions
Clauses
Relevant Industries
Automotive
Electronics and Technology
Consumer Goods
Industrial Equipment
Healthcare and Medical Devices
Construction Equipment
Agricultural Equipment
Telecommunications
Food and Beverage
Pharmaceuticals
Home Appliances
Fashion and Apparel
Machinery and Tools
Relevant Teams
Legal
Sales
Operations
Commercial
Business Development
Distribution
Compliance
Supply Chain
Marketing
Finance
Product Management
Relevant Roles
Legal Counsel
Commercial Director
Sales Director
Operations Manager
Business Development Manager
Distribution Manager
Channel Manager
Compliance Officer
Contract Manager
Chief Executive Officer
Managing Director
Sales Operations Manager
Regional Sales Manager
Supply Chain Manager
Brand Manager
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