of Selling Agent for a District or Town
Agreement is made on this………………day of between AB son of CD, dealer
in……………………at……………………..(hereinafter called the “principal”) of the one part and
OP son of XY resident of…………….(hereinafter called the “agent”) of the other
the principal is a dealer in……………..and is willing to appoint a suitable party
as sole agent for the town of……………..(or district of…………….)
Whereas, the agent has approached the principal and has expressed his consent
to act as the sole agent of the principal.
Agreement Witnesses as follows :
the agent is hereby appointed the sole agent of the principal for the town
of………………(or district of……………..) (hereinafter called the agency district) for
the purposes of marking sales of the principal’s goods for the terms
of…………….years from the date hereof on the terms and conditions set forth hereof
on the terms and conditions set forth hereunder.
the agent shall not while selling the principal’s goods make any representation
in the trade to give any warranty other than those contained in the principal’s
printed current price list.
the agent shall be allowed to deduct and retain with himself……………….per cent of
the list price of all goods sold on behalf of the principal. The agent shall
keep a record of all sales and shall remit to the principal regularly on each
Saturday all sums received by the agent in respect of such sales less……………… per
cent as his commission. All sales shall be made for cash against delivery of
goods unless the principal’s consent in writing to give credit to any
particular purchaser be in any case first obtained and in the case of credit
sales the principal may direct for such increase in the price of his goods over
and above the current list price of the principal.
the agent shall not make, purchases on behalf of nor in any manner pledge the
credit of the principal without the consent in writing of the principal.
the agent shall at the expense of the principal take on rent and occupy for the
purpose of the agency suitable premises with prior approval of the principal
and shall keep insured for the full value against all risk of all goods
entrusted to his custody by the principal under this agreement and on request
by the principal shall, produce to the principal receipts for the rent rates
and taxes of the said premises and for the premiums on insurance policies
showing that the same have been paid on or about their respective due dates.
The agent shall bear all expenses relating to or incidental to the agency.
the agent while selling to persons in the trade shall obtain the purchasers
signature to an agreement to the following effect :
the said principals goods shall not directly or indirectly be resold outside
the agency district
the said principals goods shall not be resold to the public below the full list
price for the time being.
the agent shall in all his commercial dealing and documents and on the
name-head indicating his place of business describe himself as selling agent
for the principal.
a breach of the condition in Cl. 6 hereof shall entitle the principal to put an
end to this agreement forthwith and also to recover from the said agent by way
of liquidated damages the sum of Rs………………… for each such article sold in breach
of such clause. The agent undertakes that all purchasers to whom he may sell
the principals goods shall duly enter into, and carry out the aforesaid
agreement referred to in Cl. 6 hereof and a breach by any purchaser of any such
agreement shall for the purposes of this agreement be deemed to be a breach of
Cl. 6 of this agreement by the agent and give the principal the rights and
remedies against the agent for breach by the agent of this agreement .
the principal shall keep with the agent a stock of his goods free of all
expenses of delivery to the value of Rs………………… according to the principals
current price list and the principal further undertakes to replenish such stock
in the close of each month so as to keep it at the agreed value : Provided
always that the agent shall have no right of action against the principal for
delay resulting from shortage of stock, delays in transit accidents, strikes or
other unavoidable occurrence in replenishing such stock . The principal shall
always have the right without any prior notice to cause a stock checking of the
said goods and on any shortage or deficiency found on such stock-taking the
agent shall on demand pay to the principal the list price of such shortage or
deficiency less the deduction by way of commission or rebate receivable by the
agent. The agent shall not alter, remove, or tamper with the marks or numbers
on the goods so entrusted into his custody.
the agent shall not sell the goods of the principal to any purchaser except at
the full current price list of the principal published by him from time to
time. The agent may while selling principals goods allow a discount or rebate
of ……………….. per cent.
in the event of any dispute arising between the agent and a purchaser of the
principal’s goods, the agent shall immediately inform the principal of the same
and shall not without the principal’s approval or consent in writing take any
legal proceedings in respect of or compromise such dispute or grant a release
to any purchaser of the principal’s goods.
either party may terminate this agreement at his option at any time after the
expiration of…………..years by giving to the other one month’s notice in writings.
the benefits under this agreement shall not be assignable to any other person.
during the currency of this agreement the principal shall redirect all
inquiries or orders for principal’s goods received by him from persons residing
in the agency district of the said agent and in the event where the principal
supplies such purchasers directly he shall allow the agent the same commission
or rebate as the agent would have been entitled to retain if he had carried out
such transaction. A certificate under the signature of the principal’s
accountant of the amount of such commission or rebate payable to the agent
shall be conclusive evidence of such amount. Such remuneration shall be payable
to the agent (half-yearly or monthly). The agent undertakes to refer to the
principal all enquiries or orders for the principal’s goods from persons
residing outside the agency district of the agent and similar enquiries or
orders from persons residing in the agency district for the purpose of re-sale
outside the said district and the agent shall not be entitled to any commission
or rebate in respect of any sale resulting from any such enquiries or orders.
the agent shall always during the existence of this agreement devote his whole
business, time and energy for pushing the sale of the principal’s goods and
shall in all such dealings act honestly and faithfully to the principal and
shall carry out orders and instructions and shall not engage or be interested
either directly or indirectly as agent or servant in any other business or
trade without the prior consent in writing of the principal.
on the termination of his agreement for any reason whatsoever the agent shall
not for the period of one year solicit trade orders from the persons who had
been purchasers of the principal’s goods any time within (seven) years
immediately preceding the date of such termination and the agent shall not for
a period of one year engage or be interested as agent or servant in any
business, firm or company manufacturing, selling or dealing in goods similar to
those transacted by the principal.
all goods shall be sold by the agent for delivery at agent’s place of business
but the agent shall at his own expenses have the right to deliver goods to
purchasers at their places of business.
without prejudice to any other remedy he may have against the agent for any
breach or non-performance of any part of this agreement the principal shall
have the right summarily to terminate this agreement-
the agent being found guilty of a breach of its provisions or being guilty of
misconduct or negligence of his duties.
the agent absenting himself from his business duties entrusted to him under the
agreement for four or five days without the principal’s prior permission in
the agent committing an act of bankruptcy.
in the event of any dispute arising out of or in relation to or touching with
the agreement the same shall be decided by arbitration in accordance with the
provision of the Arbitration Act of 1940.
the principal shall be entitled to terminate this agreement by giving one
month’s notice in writing to the agent in the event of his ceasing to carry on
the said business of the principal.
on the termination of this agreement for whatever reason the agent shall
forthwith deliver to the principal all the unsold stock of goods and shall pay
to the principal for the shortage or deficiency or stock at list prices less
commission and rebate allowable to the agent. The agent shall also deliver to
the charge of the principal all books of account and documents of the agency,
cash, cheques, bills of exchange or other securities he may have received
during the normal course as a result of sales of the principal’s goods and
shall transfer, assign or negotiate in favour of the principal all such securities
Witenss Whereof, the parties have signed this agreement on the day and year
first above written.