Agreement of Dealership between Manufacturer and Firm
This Agreement is
made on this.......day of ........................ at ..............between :
1.
Messers
XYZ Ltd., incorporated under the Companies Act, 1956 having its registered
office at ...................................................... hereinafter
called the company of the one part ;
and
2.
Messers
ABC & Co, a partnership concern consisting of its partners Mr.
................... , Mr............................ and
Mr.......................through its partners Mr......................having
its office at..........................hereinafter called the firm of the other
part.
WHEREAS the
manufacturer is engaged in manufacturing electronics and electrical products of
different varieties.
AND WHEREAS the firm
has its own establishment and is making sales of the products of other
companies and has shown its desire of selling the product of the company from
its new showroom recently taken on rent.
AND WHEREAS the
company, after considering the proposals put forward by the firm has decided to
appoint the firm.
NOW THIS AGREEMENT
WITNESSES AS UNDER :
1.
That
the company hereby appoints the firm as its dealer to sell the products of the
company.
2.
That
the appointment of the firm as dealer shall remain in force for three years
from the date of this agreement, but this agreement may be renewed for the same
period on the terms and conditioned that may be settled between the parties at
that time.
3.
That
the firm shall keep the stock of the company for Rs................at any time.
The firm shall submit a quarterly return of the product received, product sold
and product in hand.
4.
That
the company shall allow credit of one month to the firm on all invoices. But an
interest of 18% per annum shall be charged on all payments received after one
month.
5.
That
advertisement material shall be supplied by the company to the firm in
sufficient quantity in order to display the same at sales depot and for
distribution in the areas of its operation.
6.
That
the company shall bear 60% cost of rent, and staff subject to maximum of 6% of
the invoice value of all products of the company sold to the firm. This amount
shall be credited in running account of the firm with the company on quarterly
basis.
7.
That
accounts between the parties shall be settled half yearly and debit or credit
notes shall be issued half yearly in order to square up the accounts.
8.
That
the firm shall make every efforts to promote the sales of the company. In case
it is felt by the company that the firm is not taking proper interest, it may
terminate the dealership by giving one months prior notice.
9.
That
on termination of the agreement the accounts shall be settled within a
fortnight. The company shall take back all unsold stock and settle the account.
10.
That
firm shall not sell any goods of the company on a price higher or lower than
what may be fixed by the company from time to time.
11.
That
the firm is entitled to appoint sub-dealer, agents, salesmen clerk etc. in
salary or commission basis, but with the condition that they shall work
strictly within the terms an conditions of this agreement.
IN WITNESS WHEREOF
the parties have executed these presents on the day, month and year first above
written.
Sealed, signed and
delivered
by Mr. A pursuant to
Board
Resolution dated
......... of
XYZ Ltd.
____________________________
(Secretary)
Sealed, signed and
delivered
by Mr. C. Firm
____________________________
Mr. C. (Partner of
ABC & Co.)
In the presence of
1. ...............
2. ...............
