Car Rental Distribution Agreement
Car Rental Distribution Agreement
This Car Rental Distribution Agreement ("Agreement") is made and entered into as of the [Date], by and between [Your Company Name], having its principal place of business at [Your Company Address] ("Supplier"), and [Distributor Name], located at [Distributor Address] ("Distributor"). The Supplier and Distributor may be individually referred to as a "Party" or collectively as the "Parties."
WHEREAS, the Supplier is in the business of renting vehicles to the public; and
WHEREAS, the Distributor wishes to distribute and market the Supplier’s rental vehicles under the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the Parties agree as follows:
I. Distribution Terms
A. Appointment: The Supplier hereby appoints the Distributor as its exclusive distributor of rental vehicles within the territory of [State] for a term of one year, commencing on [Start Date], and ending on [End Date].
B. Territory: The Distributor’s rights to distribute the Supplier’s rental vehicles are limited to the geographic area of [State]. Any expansion of the territory must be agreed upon in writing by both Parties.
C. Minimum Purchase Requirements: The Distributor agrees to rent a minimum of 50 vehicles per month from the Supplier. Failure to meet this requirement for three consecutive months will result in termination of this Agreement.
D. Marketing and Promotion: The Distributor agrees to actively market and promote the Supplier’s rental vehicles through various channels, including online advertising, print media, and local events. The Distributor shall bear all marketing and promotional expenses.
II. Supply of Vehicles
A. Vehicle Inventory: The Supplier agrees to provide the Distributor with an inventory of vehicles as per the agreed schedule and specifications. The Supplier will ensure that all vehicles are in good working condition and comply with all applicable laws and regulations.
B. Delivery of Vehicles: The Supplier will deliver the vehicles to the Distributor’s designated location at [Distributor Address], within 7 days of receiving a purchase order. Delivery costs will be borne by the Supplier.
C. Replacement and Repairs: The Supplier will provide replacement vehicles or repair services for any vehicles that are defective or damaged during the term of this Agreement. The Distributor must notify the Supplier of any issues within 5 days of identifying them.
D. Pricing and Payment: The price of each rental vehicle shall be $200 per month. The Distributor agrees to make payments within 30 days of receiving an invoice from the Supplier. Late payments will incur a fee of 1.5% per month on the outstanding amount.
III. Confidentiality
A. Confidential Information: Both Parties agree that the terms of this Agreement and any information exchanged during the distribution process are confidential and shall not be disclosed to any third party, except as required by law.
B. Obligations: The Parties agree to take all reasonable steps to ensure that their employees, agents, and representatives comply with the confidentiality provisions of this Agreement.
IV. Warranties and Representations
A. Supplier’s Warranties: The Supplier warrants that it has the authority to enter into this Agreement and that it has the legal right to lease the vehicles to the Distributor. The Supplier also warrants that all vehicles will be free from defects and comply with all applicable laws and regulations.
B. Distributor’s Warranties: The Distributor warrants that it has the authority to enter into this Agreement and that it will comply with all terms and conditions set forth herein. The Distributor also warrants that it will actively market and promote the Supplier’s rental vehicles.
C. No Further Claims: Both Parties represent that they will not pursue any further claims or legal action related to the distribution of rental vehicles after the execution of this Agreement.
V. Indemnification
A. Indemnification by Supplier: The Supplier agrees to indemnify and hold harmless the Distributor from any claims, liabilities, damages, or expenses (including reasonable attorney’s fees) arising out of or related to the Supplier’s ownership and leasing of the vehicles.
B. Indemnification by Distributor: The Distributor agrees to indemnify and hold harmless the Supplier from any claims, liabilities, damages, or expenses (including reasonable attorney’s fees) arising out of or related to the Distributor’s marketing and distribution activities.
VI. Governing Law and Dispute Resolution
A. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State].
B. Dispute Resolution: Any disputes arising out of or related to this Agreement shall be resolved through binding arbitration in [City, State], in accordance with the rules of the American Arbitration Association. Each Party shall bear its own costs and expenses related to the arbitration.
VII. Miscellaneous Provisions
A. Entire Agreement: This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, understandings, and agreements, whether written or oral.
B. Amendments: Any amendments to this Agreement must be in writing and signed by both Parties. No oral modifications will be accepted.
Signatures
Distributor
[Name]
[Title]
[Date]
Supplier
[Name]
[Title]
[Date]
