Dealer Arranged Conditional Sale Agreement for India

Dealer Arranged Conditional Sale Agreement Template for India

A comprehensive agreement governed by Indian law that establishes the terms and conditions for a conditional sale arrangement between a dealer and purchaser, where the dealer retains title to the goods until full payment is received. The agreement details payment terms, delivery conditions, warranties, and obligations of all parties involved, while ensuring compliance with Indian commercial laws including the Sale of Goods Act 1930 and relevant state-specific regulations. It includes provisions for default remedies, maintenance requirements, and transfer of title, making it suitable for high-value goods transactions where payment is made in installments.

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What is a Dealer Arranged Conditional Sale Agreement?

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.

What sections should be included in a Dealer Arranged Conditional Sale Agreement?

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

What sections are optional to include in a Dealer Arranged Conditional Sale Agreement?

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

What schedules should be included in a Dealer Arranged Conditional Sale 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

Authors

Alex Denne

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

Jurisdiction

India

Publisher

Genie AI

Document Type

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions
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

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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