What is the legal binding between a fertilizer company and their distributor for sale and purchase of fertilizers?

The indigenous/imported fertilizers can be sold only thru licensed dealers, having sale license (Fertiliser Registration Certificate) issued by the state government. Accordingly, fertilizer manufacturers / importers enter into legally binding dealership agreements with such licensed dealers.

The Company enters into dealership agreement which is a legal document defining the rights and obligations of the seller and the purchaser enforceable legally under the Indian Contract Act. This dealership agreement also have provisions of dispute resolution thru mutual discussions, arbitration under arbitration act and failing which can be legally enforced in the court of law, having jurisdiction as decided by the company. The payment obligations related with sale and purchase are fully protected within the legal framework.