Agreement to Appoint
Agent in District
This Agreement is
made on this........day of.................... 19...... between :
1.
Mr.
A s/o Mr. B r/o XY, hereinafter called the "Principal", on the one
part ;
and
2.
Mr.
C s/o Mr. D r/o XYZ, hereinafter called the "Agent" on the other
part.
WHEREAS the principal
is a dealer of ...............and is interested to appoint an agent for the
district of.............
AND WHEREAS the agent
has approached the principal for his appointment as agent of the principal.
AND WHEREAS the
principal has agreed to appoint the agent as agent.
NOW THIS AGREEMENT
WITNESSES AS UNDER :
1.
That
the agent is hereby appointed as agent of the principal for the district
of..............to sell the goods of principal.
2.
That
this appointment is made for a period of five years from the date of execution
of this deed.
3.
That
agent shall sell the goods of the principal on the prices fixed by the
principal. The Agent shall have no right to make any representation in the
trade. He shall further not be entitled to give warranty other than those
printed in the price list of the principal.
4.
That
the agent shall get 10% commission on sales price. The agent is entitled to
deduct such 10% commission from the sale price on weekly basis on every
Saturday and remit the balance amount to the principal on the same day.
5.
That
the agent shall make all sales cash down. He is not entitled to make any credit
sales, unless permission for such credit sales to some particular customers, is
obtained from the principal.
6.
That
the agent shall obtain premises on rent in the market area. The expenses in
this regard, and agreed rent and securities shall be borne by the principal.
7.
That
the agent shall bear all incidental or other expenses relating to agency.
8.
That
the agent shall while making a sale to trade take an undertaking from the
dealer that no retailing shall be done outside agency territory.
9.
That
the agent shall mention himself as agent on all papers, documents, cash memos,
bill books and letter head etc. for the principal.
10.
The
breach of conditions mentioned in clause 8 and 9 shall entitle the principal to
terminate the agreement and recover a sum of Rs.............by way of damages.
11.
That
the principal shall keep with the agent stock valuing Rs.............. at all
time. For this purpose the agent shall submit weekly stock list of the goods of
the principal with the agent.
12.
That
the agent shall sell the goods to the purchaser at the current price list of
the principal. The agent is entitled to allow a discount of 2% on purchases of
Rs. 5000/- and above.
13.
That
in case any dispute arises between the purchaser and the agent regarding goods
of the principal, the agent shall immediately inform the principal for
settlement of the dispute and in no case the agent shall make any compromise
with the purchaser without the consent of the principal.
14.
14.
That either party may terminate this agreement after expiry of 5 years after
giving one month's prior notice of his intention to do so.
15.
That
in no case the benefit of the agreement can be assigned to any third person.
16.
That
during the continuance of this agreement the principal may supply the goods
direct to the dealers of the district in which agency has been given to the
dealer. On such direct supply also the agent will get the same commission which
he is getting for supply of goods direct to the agent.
17.
That
during the currency of this agreement, the agent shall work honestly and
diligently in increasing the sales of the goods of the principal and shall not
engage himself directly or indirectly in any other business without the written
consent of the principal.
18.
That
the agent shall make sales of all goods at his place of business but if the
agent so desires he can deliver the goods at the purchaser's place on his own
cost. The principal will not bear such expenses.
19.
That
the principal shall have the right to terminate this agreement without
prejudice to any other remedy for any breach or non-performance of any part of
this agreement namely :
1. If the agent is found
guilty of a breach of any provision of this agreement or is found guilty of
misconduct or negligence of his duties ;
2. If the agent is found
absent from his duties for more than a week without the prior permission of the
principal ;
3. If the agent commits
any act of bankruptcy.
20.
That
if any dispute arises between the principal and the agent regarding this
agreement the same shall be settled by arbitrators duly appointed by both the
parties.
21.
That
on termination of this agreement the agent shall return all unsold goods to the
principal and shall handover principal's cash and other documents and papers
etc. within seven days from the date of termination.
We the above
mentioned parties have signed this agreement in the presence of the following
witnessess :
Witnesses :
1.
Name......................................
Address...................................
....................................................Principal
2.
Name..................................................Agent
Address..................................
...............................................
