The Master Dealer Agreement is a fundamental commercial contract used to establish and govern the relationship between manufacturers/principals and their authorized dealers in the Philippines. This document is essential when a company wishes to distribute its products through third-party dealers in the Philippine market, requiring a comprehensive framework that ensures compliance with local laws while protecting both parties' interests. The agreement typically covers crucial aspects such as territorial rights, performance requirements, pricing structures, and operational procedures. It's particularly important in the Philippine context due to specific local regulatory requirements, including those under the Civil Code of the Philippines and the Consumer Act. The Master Dealer Agreement serves as the primary reference document for the entire dealer relationship, often supplemented by various schedules and appendices that can be updated to reflect changing business conditions without modifying the main agreement.
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1. Parties: Identification of the principal/supplier and the dealer, including complete legal names, registration details, and addresses
2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the dealership arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Appointment and Territory: Terms of dealer appointment, territorial rights, and exclusivity provisions
5. Term and Renewal: Duration of the agreement, conditions for renewal, and notice periods
6. Dealer Obligations: Core responsibilities of the dealer including sales targets, marketing requirements, and service standards
7. Principal's Obligations: Responsibilities of the principal including product supply, support, and training
8. Ordering and Supply: Procedures for ordering products, delivery terms, and inventory requirements
9. Prices and Payment: Pricing structure, payment terms, and currency considerations
10. Intellectual Property: Usage rights for trademarks, branding, and other IP
11. Confidentiality: Protection of confidential information and trade secrets
12. Warranties and Indemnities: Product warranties, dealer warranties, and mutual indemnification provisions
13. Termination: Grounds for termination, termination process, and consequences
14. Post-Termination: Obligations and rights of parties after agreement termination
15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Training and Support: Detailed provisions for technical training and ongoing support, relevant when products require specialized knowledge
2. Marketing and Promotion: Specific marketing requirements and cost-sharing arrangements, important for consumer-facing products
3. After-Sales Service: Service and maintenance obligations, crucial for technical or durable products
4. Performance Targets: Detailed sales targets and performance metrics, relevant for larger scale dealerships
5. Sub-Dealers: Rights and conditions for appointing sub-dealers, important for larger territories
6. Insurance: Specific insurance requirements, important for high-value products or high-risk activities
7. Data Protection: Specific data handling and privacy requirements, crucial when dealing with customer data
8. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in international dealings
1. Products and Pricing Schedule: Detailed list of products, pricing structure, and dealer margins
2. Territory Description: Detailed description of geographical territory and any excluded areas
3. Performance Targets: Specific sales targets, KPIs, and measurement criteria
4. Technical Requirements: Technical specifications, facility requirements, and quality standards
5. Marketing Guidelines: Branding requirements and marketing standards
6. Service Level Requirements: Detailed service standards and response times
7. Warranty Procedures: Warranty handling procedures and claims process
8. Training Requirements: Required training programs and certification standards
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