Dealership Agreement Between A Manufacturing Company And Firm - Legal Draft

This

agreement made on thisday of.between chandika & co. Ltd., a

company incorporated under the companies act, 1956 and having its registered

office at (hereinafter called the company which expression shall, unless

the context admits otherwise, includes its representatives) of the one part and

jumb & jumboo, a partnership firm consisting of

shri..,shrishri.and smt..w/o shripartners,

having its main business place atand branches at.. And

..(hereinafter called the firm which expression shall, unless the context

admits otherwise, include the partners, their heirs, executors, administrators,

representatives and assigns) of the other part.Whereas1.

The

company manufacturers cotton and polyster fibre yarn suitings and shirtings.2.

The

firm has its own well-established marketing network and is selling goods of

various manufactures and is desirous of selling the goods of the company at a

new sales depot recently taken by it on rent for the purpose.3.

The

company, after having considered the proposal of the firm, has agreed to

appoint the firm as its dealer on the terms and conditions as hereinafter

appearing.Now

this agreement witnesses as under :1.

That

the company hereby appoints the firm as its dealer for selling its products,

more particularly described in the schedule annexed hereto.2.

That

the agreement shall remain in force originally for three years commencing

frombut may be renewed for similar periods on the terms and conditions as

may be agreed by and between the parties hereto.3.

That

the firm shall keep a minimum stock ofpieces each of the companys products

described in the schedule to meet the demand of the ultimate users/consumers,

and such quantity shall be reviewed every quarter in the light of the sales

during the previous quarter the demands, consumers likings and the market

trends.4.

That

the company shall supply to the firm its products on credit for fifteen days

from the date of the invoice and shall charge interest at the rate of.per

cent per annum from the sixteenth day of the invoice till payment in full if

payments are not made within the period credit aforesaid.5.

That

the company shall supply to the firm publicity and advertisement material in

sufficient quantity for display at the firms sales depot and for the

distribution in its area of operation.6.

That

the company shall bear 60% of the cost of maintaining the firms sales depot

including rent thereof subject to a maximum of 6% of the invoice value of all

the products of the company sold to the firm, which amounts shall be credited

to the firms running account maintained with the company at the end of each

quarter.7.

That

the accounts between the parties will be settled half-yearly and the

credit/debit balance shall be squared up by making necessary payment6s by the

parties.8.

The

firm shall make all efforts for the promotion of the sale of the companys

products and in the event of the company being of opinion on the basis of sale

records that the firm is failing in properly performing its duty as dealer, the

company shall be at liberty to terminate this agreement by giving the firm one

months notice in writing and on the expiry of the notice period, this

agreement shall stand terminated and the parties shall settle their accounts

within a week thereafter.9.

The

company hereby agrees and undertakes to supply to the firm its products as per

the firms orders and on the company failing to supply the goods under the

firms orders ,the firm shall be at liberty to terminate the agreement by

giving the company one months notice in writing and after the expiry of the

notice period, this agreement shall stand terminated and the parties shall

settle their accounts within a week thereafter10. The

firm shall at no time sell any product of the company at a price higher than

that fixed by the company from time to time11. The

firm shall be free and entitled to appoint sub-dealers, salesmen, commission

agents or other sales personnel on salary, commission or any other basis, but

with the condition that they will function in accordance with the provisions of

this agreement and not do anything which is detrimental to the interest of the

company, or the firm and the collective interests of both.In

witness whereof, etc.Schedule

reprred to above