Dealer contracts: basic concepts

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In today's market dealers operate different: the official, exclusive and others.Their functions are sometimes so different that it is difficult to determine what the dealership.By definition, the dealer is a legal (physical) person who performs intermediary functions in the implementation of transactions.If this is the dealer contract, and the very person acting on its behalf.

Thus, a dealer acting as an intermediary between producers and buyers in the wholesale trade.His actions are performed on the basis of treaties that provide for the transition of ownership of the goods from the supplier to the dealer and then to the buyer.Basically dealership agreement is an agreement for the sale or barter.In fact, the dealer is a simple intermediary products reseller.However, today the market a number of companies that call themselves dealers, and are in fact based on the actual relationship attorneys or commissioners.

Classic dealer from the definition of the western economy is the initial link in the chain of mediation and finds its place in a direct relationship with the manufacturer (supplier).The dealer agreement - an agreement that is concluded between the dealer and the manufacturer, it defines their duties and rights.Still, relations between the parties are not limited to simply supply products.As international experience shows, developed certain principles and differences from the usual classical dealership wholesale.In addition to the duties of the payer and the buyer is responsible to the dealer by the manufacturer additional obligations and has certain rights.

Firstly, it is the special dealer discounts.Since the dealer - an exclusive buyer, it products are sold at the minimum price.In this condition indicates the dealership agreement.Due to the fact that usually the dealer buys a large wholesale shipments of goods, the producer at the actual low profitability due to high speed to earn extra income

second condition dealership - a representation of commercial interests and sale of products including certain range of customers in a particular area.Most often it is the exclusive right to allow build your business, knowing that among a range of customers in a given territory or the product, no one will sell.

concluded a dealership agreement, a model of which prepares the manufacturer, the regional representative obtains the right to use trademarks and cited as the official dealer of the supplier, besides the opportunity to select a specific type of product for the consumer properties, quality and other parameters.

However, apart from the rights and responsibility of the dealer lays down a large number of responsibilities that are specific to these relations.

appears obligation to purchase specified quantities of goods at regular intervals.And if in the same period, acquired a smaller amount, then the difference is transferred to the next period, and the dealer is obliged to sell it.Also the representative is obliged to observe the territory in which the implementation will be carried out.The aim is to expand the dealership market and monopolization of reasonable laws.Usually dealership agreement applies to the territory, which coincides with the administrative division.

is the responsibility of the dealer's advertising campaigns and companies, the cost of which the manufacturer does not compensate.Also, the representative must produce after-sales service and product trade only one manufacturer.