The Dealer Arranged Conditional Sale Agreement is a crucial document used in commercial transactions where goods are sold on an installment basis while the dealer retains ownership until full payment. This arrangement is particularly common in India for high-value goods transactions such as vehicles, machinery, or equipment. The document structure reflects requirements under Indian law, including the Sale of Goods Act 1930, Indian Contract Act 1872, and applicable state regulations. It provides security for the dealer through title retention while allowing the purchaser to take possession and use of the goods before completing payment. The agreement typically involves detailed payment schedules, maintenance obligations, insurance requirements, and specific provisions for default scenarios. It may also include involvement of finance companies and might require registration under specific state laws depending on the nature of goods involved.
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1. Parties: Details of the Dealer, Purchaser, and any Finance Company involved in the conditional sale arrangement
2. Background: Context of the transaction, including the dealer's authority to sell and the purchaser's intention to buy under conditional terms
3. Definitions: Key terms used throughout the agreement including 'Goods', 'Purchase Price', 'Conditional Period', 'Payment Terms'
4. Sale and Purchase: Core terms of the sale including description of goods and purchase price
5. Payment Terms: Detailed structure of payments including installments, due dates, and payment methods
6. Transfer of Title: Conditions for transfer of ownership and retention of title until full payment
7. Delivery and Acceptance: Terms regarding delivery, inspection, and acceptance of goods
8. Dealer's Representations and Warranties: Warranties regarding goods' condition, title, and compliance with specifications
9. Purchaser's Obligations: Maintenance, insurance, and usage requirements during conditional period
10. Default and Remedies: Consequences of payment default and seller's remedies
11. Termination: Circumstances and process for agreement termination
12. Governing Law and Jurisdiction: Applicable Indian law and jurisdiction for disputes
1. Insurance Requirements: Detailed insurance obligations - required for high-value goods or when mandated by finance company
2. Registration Requirements: Required for vehicles or when goods need statutory registration
3. Third-Party Finance Terms: Include when a separate finance company is involved in the transaction
4. Service and Maintenance: Required for technical equipment or machinery requiring specific maintenance
5. Export Restrictions: Include when goods have export restrictions or territorial limitations
6. Buy-Back Options: Optional terms for dealer buy-back arrangements
7. Assignment Rights: Include when either party needs right to assign the agreement
1. Schedule 1 - Description of Goods: Detailed technical specifications and description of goods
2. Schedule 2 - Payment Schedule: Detailed breakdown of installment amounts and payment dates
3. Schedule 3 - Delivery Terms: Specific delivery requirements and acceptance criteria
4. Schedule 4 - Warranty Terms: Detailed warranty provisions and claim procedures
5. Appendix A - Condition Report: Initial condition report of goods at time of delivery
6. Appendix B - Required Insurance Coverage: Specific insurance requirements and minimum coverage levels
Relevant legal definitions
Clauses
Relevant Industries
Automotive
Industrial Equipment
Manufacturing
Agricultural Equipment
Construction Equipment
Medical Equipment
Technology Hardware
Heavy Machinery
Commercial Vehicles
Office Equipment
Relevant Teams
Legal
Sales
Finance
Commercial
Operations
Risk & Compliance
Credit Control
Business Development
Procurement
Relevant Roles
Commercial Director
Sales Manager
Legal Counsel
Finance Manager
Contract Administrator
Business Development Manager
Credit Controller
Risk Manager
Compliance Officer
Operations Manager
Procurement Manager
Dealer Principal
Finance Director
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