Sample Memorandum of Understanding Format for Dealership / Distributorship

Template / Example of Dealer Distributor MOU in word / doc

Memorandum of Understanding

1. This MOU is between M/s Rocket Sales Limited with Head Office at ___________________________________ as supplier of “Shakti Steel” Brand HR Coils and M/s ABC Corporation at ___________________ as Distributor for their product.

2. This MOU is from 1st April 2013 to 31st March 2014.

3. The Distributorship is for the entire State of Kerla and the company shall not make any direct billing Ex-Cochin branch other than M/s ABC Corporation, unless and until mutually agreed upon.

4. M/s M/s ABC Corporation. will give a Security Deposit of Rs.15,00,000/-to the company. The company will pay interest @ l2% per annum, payable annually.

5. The Security Deposit amount is refundable only in case of termination of Distributorship from other side and shall not be adjusted in subsequent supply.

6. The Company shall raise invoices to the Distributor as per prices ruling from time to time. The prices include excise duty, cess, freight charges up to delivery point and transit insurance. Any changes in taxes and duties shall be borne by the Distributor, minimum lifting should be 23MT.

7. The Distributors shall abide by the credit and payments of the company from time to time. The company shall allow distributor discount and quantity discount as per their norms.

8. The company will appoint marketing or sales personnel for generating sales for dealers and project

9. The company shall provide a sales commission from 1.5% on direct sales procured by marketing personnel after collection of payment and Tax Forms from the party.

10. The Distributor is not liable for any payment for supplies made directly by the company or its representative.

11. All disputes and claims regarding supplies, discounts etc. must be settled within 30days.

12. The Distributor will circulate a Dealer’s price and a consumer price mutually agreed upon and approved by the company.

13. Payment due will be considered from the date of receipt of materials.

14. Quality complains must be entertained immediately and finally settled with 30 days positively.

15. The company will provide samples, folders, brochures as per company policy to the Distributor and materials to be supplied strictly according to the indents placed by the Distributor.

16. Incase of delayed supplies by the company against specific orders of projects/Dealers such stocks will be kept outside the Distributors outstanding and payment against such stocks will be made as and when those stocks are sold and payments received theirof.

17. The agreement can be terminated by either party giving 30 days notice to each other. The Security Deposit will be returned with interest.

Please sign duplicate copy of this letter in acknowledgement of acceptance of the terms and conditions.


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