Agreement Between Manufacturer And Commission Agent - Legal Draft

an

Agreement made of thisday of..between ABC & Co. Ltd. having

registered office at.and manufacturer of..(hereinafter called the

manufacturer) of the one part and OP son of LN resident of..(hereinafter

called the agent ) of the other part.Whereas1. The

manufacturer is desirous of appointing a commission agent for the sale

of.manufactured by it.2. The

agent has approached the manufacturer for his appointment as such agent and has

consented to act as such agent.Now

This Agreement Witnesses as Follows:1.

That

the manufacturer hereby appoints the agent to be its commission agent for the

sale of.manufactured by the former in the area comprised by the

districts of..and in the State of .and the agent hereby agrees

to act as such sole selling agent in the said area of..on the terms

mentioned herein.2.

That

the agent shall canvas for, secure orders and push the sale of to the best

of his ability and experience within the said area and hereafter guarantee to

secure directly or indirectly orders for the sale of ..to the extent of the

value of Rs.at least in the year commencing from the date of this

agreement.3.

That

the agent shall employ sub-agents, servants, canvassers, clerks and other

employees at his own expense and cost in the business or the commission agency.

The manufacturer shall, however advertise at its own cost in the said territory

and at its discretion, whether in newspapers, magazines, cinema slides, or by

any other means and shall indicate where feasible the name of the agent as its

sole selling agent in the territory indicate above.4.

That

the agent shall furnish to the manufacturer weekly return of the business

secured and the work done, the persons approached and convassed during the

previous week and shall forward to the manufacturer not later than two days

from the receipt of any orders for the supply of as well as all enquiries

received in respect of the said The agent shall deposit in the

manufacturer all moneys received in advance from the customers, and submit an

account thereof every Friday to the manufacturer.5.

That

no representation shall be made on behalf of the manufacturer except as in

conformity with the instructions issued from time to time by the manufacturer.

All business done or procured by the agent shall be in accordance with the

terms mentioned in the Schedule attached herehto, subject to modification

thereof as per circulars or directions issued by the manufacturer from time to

time.6.

That

no order for the supply by the manufacturer shall be secured or undertaken

which shall exceed the value of Rs.. unless prior consent thereof has

been obtained in writing from the manufacturer.7.

That

this agreement shall be in force for a period of one year from the commencement

thereof, during which period, the agent shall, not canvass for or act as

selling agent for goods of the same kind for any other manufacturer.8.

That

the agent shall be paid by the manufacturer a commission of .per cent .

on all orders and repeat orders received directly or indirectly from the said

territory, which shall have been executed or complied with by the manufacturer,

such execution or compliance being in the absolute discretion of the

manufacturer. The said commission will be payable at the end of every month and

shall be payable even in respect of orders received of supply of the said

.. made by manufacturer out of their own accord to any constituent within

the said territory, for valuable consideration.9.

That

at the termination of the agreement whether by efflux of time or otherwise. The

manufacturer shall not be liable to pay any commission on orders received

thereafter.10. That

the agency may be determined by the manufacturer at any time during the said

period of one year, after giving fourteen days notice thereof, in case the

agent should omit to comply with the obligations imposed upon him under this

agreement or in case, in the opinion of the manufacturer, the agent is guilty

of misrepresentation as to the quality or characteristics of the said..or

the canvassing or securing orders in the said territory does not substantially

exceed the minimum guaranteed by the agent or for any other just cause

construed in the business point of view. The agent may terminate this agreement

at any time during the said period of one year, after giving one months notice

thereof in case the manufacturer should repeatedly fail to comply with or

execute the orders by the agent any duly communicated to or accepted by the

manufacturer pursuant to this agreement or in case the goods..supplied are

substantially inferior to the description thereof, or in case the manufacturer

should without just case, or cause, withhold the payment of the commission due

to the agent under the agreement for a period exceeding tow months.11. That

the agent shall be personally liable for the payment of the price of the goods

supplied through him or pursuant to the orders secured by him, if the

constituent to whom the goods were so supplied by the manufacturer refused

within three months of the receipt thereof to pay for the same or refuses to

accept the same when forwarded to such constituent. This liability of the agent

shall be akin to that surety.12. That

the agent shall furnish a cash security of Rs.to the manufacturer for a

period of one year sufficient (irrespective of previous determination of the

agreement for any cause whatsoever) to ensure against due compliance by the

agent of the terms hereof and such security shall carry interest at the rate of

3 per cent annum. Such security shall be repayable with interest to the agent

within one month of the expiry of the period fixed in the agreement after

adjustment of accounts between the parties. In case there should arise any

dispute with respect to any matter regarding which any deduction is sought to

be made by the manufacturer, the said dispute shall be referred to the

arbitration of the President of the District Bar Association at.who shall

either act as arbitrator himself or appoint any other member of the Bar (paying

income-tax) as arbitrator.in

Witness Whereof, the parties hereto have signed this agreement on the day and

year first written above....(Agent)

(Manufacturer)