Arbitration Clause in Building Agreement
Sometimes Arbitration clause assumes great importance in a
building agreement. Therefore, it should be drafted on the following lines.
“In case any dispute should arise between the owner and the
contractor, whether in respect of dealy in supply of materials by the owner or
delay in execution of work by the contractor, or the quality of the materials
so supplied or the quality of the work done or in respect of decorations or
alterations suggested or made or extra work required to be done and so executed
or not, or in respect or measurements or work done or required to be done, or
demand and payment for part or whole of the work done or not done or delay or
refusal in grant of architect’s certificate by the Engineer or its correctness
or touching the interpretation, fulfillment or breach of any of the terms of
these presents or in respect of deductions to be made or extra payments to be
recovered for work improperly done or not executed or in respect of work got
done through another contractor for default or breach or non-completion of work
agreed to be done under the particulars and for assessment of the value thereof
and fixation of liability for the same between the parties hereof or in respect
of any act or omission arising out of the performance of non-performance or the
obligations or duties pursuant to these presents, the said dispute or disputes
shall be referred to the arbitration and final award of a single arbitrator if
the parties agree thereto in writing (failing which to the arbitration of an
arbitrator to be appointed by the President of the Institute of Engineers ) (or
failing which to the arbitration of the municipal or corporation engineer or
any competent engineer or architect nominated by him in writing ) on a
reference made to him by any of the parties by notice in writing , a copy
whereof will be served on the other party at the address mentioned above or
such other address as may be notified by that other party sent by registered
post. The arbitrator shall be entitles to proceed ex parte after notifying the
parties by a reasonable notice as to the time and place therefor. The
arbitrator shall also be entitled to associate with himself a surveyor, if
necessary at his discretion. The arbitrator shall have power to reopen and
revise any certificate granted by the architect engineer under these present.”
AGREEMENT FOR APPOINTMENT OF SOLE SELLING AGENT BY MANUFACTURING
AN AGREEMENT made on this...........day of .............BETWEEN
........................company, manufacturers of...............(hereinafter called the manufacturers) of
the one part AND.................(hereinafter called the sole agent) of the other part.
The manufacturers are
engaged in the manufacture of .................and are desirous of appointing a sole
selling agent for the sale of the same.
The sole agent has
approached the manufacturers for appointment as the sole selling agent
for............goods of the manufacturers and is willing to perform the duties as such.
NOW THIS AGREEMENT WITNESSES as follows :
appoint............as the sole selling agent for the goods manufactured by them for the
area comprising......The sole agent shall have exclusive right to sell the goods of
the manufacturers in the afore-mentioned area.
This appointment is
being made by the Board of Directors subject to the condition that the
appointment shall cease to be valid if it is not approved by the company in the
first general meeting held after the date of this appointment (Approval by the
company in the first general meeting held after the date of appointment is
mandatory under section 294 (2) of the Companies Act, 1956. [Arantee Mfg.
Corporation v. Bright (P) Ltd; AIR 1967 Bom 440].
This appointment shall
last for a period of five years computed from the date of this agreement. It
may, however, be extended for further periods not exceeding five years on each
occasion. (Under section 294 (1) of the Companies Act, 1956, no company shall
appoint a sole selling agent for a term exceeding five years at a time.)
undertake not to sell their goods in retail below the following prices.
The sole agent shall not
sell the goods in retail below the prices mentioned under CI. 4 of the
The following prices,
based on present market quotations, shall be payable the sole agent to the
For the first year the
prices mentioned in CI.6 shall be binding on the parties. Thereafter the prices
shall be liable to increase or decrease according to fluctuation in market
The sole agent shall be
entitled to a commission of 3-1/2 per cent. On the sale price of the goods.
The sole agent shall
have 20 days credit for payment of price of goods after receipt of goods.
The manufacturers shall
not effect direct sales of goods within the area mentioned in CI. (1). All
inquiries, orders and correspondence which the manufacturers receive in
relation to that area shall be forwarded to the sole agent to be dealt with.
The sole agent may
appoint sub-agents and representatives for the area covered by the sole agency.
The manufacturers shall not enter into any correspondence or dealings, direct
or indirect, with them.
The manufacturers agree
to execute the orders placed by the sole agent so far as the goods available
with them permit. Neither do the manufacturers guarantee minimum supply of
goods to the sole agent nor is the latter bound to place order for any minimum
quantity of goods.
In case the terms of
this appointment are varied by the Central Government in exercise of its power
under section 294 (5) ©, Companies Act, 1956, this appointment shall, as from
the date as may be specified by the Central Government in its order of
variation of terms, be regulated by the terms and conditions as varied by the Central
IN WITNESS WHEREOF, etc.