A Sub-Dealer is a dealer who derives its authority to distribute a product from an underlying Dealership Agreement. A Sub-Dealer Agreement (also known as Sub-Distributor Agreement) is therefore an agreement which authorises a person to buy and resell a product or service.
This Agreement may either be exclusive or non-exclusive. An exclusive Agreement limits the number of parties that a principal can authorise to buy and resell a particular product or service. When entering into a Sub-Dealer Agreement, the parties must confirm that the principal has authority to enter into a Sub-Dealer Agreement.
This Agreement, which has been drafted in favour of the principal, may be used by parties in any industry e.g. manufacturing and petroleum where there is need to distribute products. It may also be modified or amended to address specific needs of the parties involved.
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