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Dealer Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Dealer Agreement

"I need a Dealer Agreement for appointing an exclusive distributor of luxury watches in Hong Kong, with strict minimum purchase requirements and after-sales service obligations, to commence from January 2025."

Document background
The Dealer Agreement is a crucial commercial contract used when a supplier or manufacturer wishes to appoint a dealer to sell and distribute their products in a specified territory under Hong Kong law. This document is essential for businesses expanding their distribution networks through third-party dealers, establishing clear rights and responsibilities for both parties. The agreement typically covers key aspects such as appointment terms, territorial rights, minimum purchase requirements, pricing structures, and performance obligations. It must comply with Hong Kong legal requirements, particularly in areas of contract law, competition law, and commercial regulations. The Dealer Agreement is particularly important in industries where local market knowledge and established distribution networks are crucial for success, and where ongoing support and service requirements necessitate a formal, structured relationship between supplier and dealer.
Suggested Sections

1. Parties: Identification of the supplier/manufacturer and the dealer, including full legal names and registered addresses

2. Background: Context of the agreement, nature of the parties' businesses, and purpose of the dealership arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Territory: Terms of dealer appointment, territory definition, and exclusivity/non-exclusivity provisions

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

6. Dealer Obligations: Core responsibilities of the dealer including sales, service, and representation of products

7. Supplier Obligations: Core responsibilities of the supplier including product supply, support, and training

8. Ordering and Delivery: Process for ordering products, delivery terms, and lead times

9. Prices and Payment: Pricing structure, payment terms, and invoicing procedures

10. Intellectual Property: Usage rights for trademarks, logos, and other IP, and protection obligations

11. Confidentiality: Protection and handling of confidential information

12. Limitation of Liability: Limits on parties' liability and indemnification provisions

13. Force Majeure: Provisions for unforeseen circumstances affecting performance

14. Governing Law and Jurisdiction: Specification of Hong Kong law and jurisdiction for dispute resolution

15. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement

Optional Sections

1. Minimum Purchase Requirements: Specific minimum purchase obligations for the dealer, used when supplier wants to ensure minimum volume

2. Marketing and Promotion: Detailed marketing obligations and cost-sharing arrangements, used when specific marketing commitments are required

3. After-Sales Service: Detailed service obligations, used for products requiring significant after-sales support

4. Training Requirements: Specific training obligations for dealer staff, used for technical or complex products

5. Performance Targets: Specific sales targets and consequences, used when performance metrics are crucial

6. Insurance Requirements: Specific insurance obligations, used for high-value or high-risk products

7. Stock Requirements: Minimum stock levels and storage conditions, used for products requiring immediate availability

8. Non-Compete Provisions: Restrictions on dealing with competing products, used when exclusivity is important

9. Data Protection: Detailed data handling requirements, used when significant customer data processing is involved

Suggested Schedules

1. Schedule 1 - Products: Detailed list of products covered by the agreement, including specifications and prices

2. Schedule 2 - Territory: Detailed description of the geographical territory, including any excluded areas

3. Schedule 3 - Minimum Purchase Quantities: Specific purchase targets and timeframes

4. Schedule 4 - Commission Structure: Detailed commission calculations and payment terms

5. Schedule 5 - Technical Requirements: Technical specifications and standards to be maintained

6. Schedule 6 - Service Level Requirements: Specific service levels and response times

7. Schedule 7 - Approved Sub-dealers: List of approved sub-dealers if sub-dealing is permitted

8. Schedule 8 - Marketing Guidelines: Detailed marketing requirements and brand guidelines

9. Appendix A - Standard Operating Procedures: Detailed operational procedures and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
































Clauses








































Relevant Industries

Automotive

Electronics

Consumer Goods

Industrial Equipment

Medical Devices

Technology Hardware

Machinery

Telecommunications

Construction Equipment

Luxury Goods

Sporting Goods

Home Appliances

Agricultural Equipment

Marine Equipment

Relevant Teams

Legal

Sales

Commercial

Operations

Supply Chain

Finance

Compliance

Business Development

Distribution

Product Management

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Compliance Officer

Operations Manager

Supply Chain Manager

Distribution Manager

Account Manager

Product Manager

Finance Director

Contract Manager

Regional Sales Manager

Channel Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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