Appointment Of Selling Agent For A District Or Town - Legal Draft

This

Agreement is made on thisday of between AB son of CD, dealer

inat..(hereinafter called the principal) of the one part and

OP son of XY resident of.(hereinafter called the agent) of the other

part.Whereas,

the principal is a dealer in..and is willing to appoint a suitable party

as sole agent for the town of..(or district of.)And

Whereas, the agent has approached the principal and has expressed his consent

to act as the sole agent of the principal.Now this

Agreement Witnesses as follows :1.

That

the agent is hereby appointed the sole agent of the principal for the town

of(or district of..) (hereinafter called the agency district) for

the purposes of marking sales of the principals goods for the terms

of.years from the date hereof on the terms and conditions set forth hereof

on the terms and conditions set forth hereunder.2.

That

the agent shall not while selling the principals goods make any representation

in the trade to give any warranty other than those contained in the principals

printed current price list.3.

That

the agent shall be allowed to deduct and retain with himself.per cent of

the list price of all goods sold on behalf of the principal. The agent shall

keep a record of all sales and shall remit to the principal regularly on each

Saturday all sums received by the agent in respect of such sales less per

cent as his commission. All sales shall be made for cash against delivery of

goods unless the principals consent in writing to give credit to any

particular purchaser be in any case first obtained and in the case of credit

sales the principal may direct for such increase in the price of his goods over

and above the current list price of the principal.4.

That

the agent shall not make, purchases on behalf of nor in any manner pledge the

credit of the principal without the consent in writing of the principal.5.

That

the agent shall at the expense of the principal take on rent and occupy for the

purpose of the agency suitable premises with prior approval of the principal

and shall keep insured for the full value against all risk of all goods

entrusted to his custody by the principal under this agreement and on request

by the principal shall, produce to the principal receipts for the rent rates

and taxes of the said premises and for the premiums on insurance policies

showing that the same have been paid on or about their respective due dates.

The agent shall bear all expenses relating to or incidental to the agency.6.

That

the agent while selling to persons in the trade shall obtain the purchasers

signature to an agreement to the following effect :1. That

the said principals goods shall not directly or indirectly be resold outside

the agency district2. That

the said principals goods shall not be resold to the public below the full list

price for the time being.1.2.3.4.5.6.7.

That

the agent shall in all his commercial dealing and documents and on the

name-head indicating his place of business describe himself as selling agent

for the principal.8.

That

a breach of the condition in Cl. 6 hereof shall entitle the principal to put an

end to this agreement forthwith and also to recover from the said agent by way

of liquidated damages the sum of Rs for each such article sold in breach

of such clause. The agent undertakes that all purchasers to whom he may sell

the principals goods shall duly enter into, and carry out the aforesaid

agreement referred to in Cl. 6 hereof and a breach by any purchaser of any such

agreement shall for the purposes of this agreement be deemed to be a breach of

Cl. 6 of this agreement by the agent and give the principal the rights and

remedies against the agent for breach by the agent of this agreement .9.

That

the principal shall keep with the agent a stock of his goods free of all

expenses of delivery to the value of Rs according to the principals

current price list and the principal further undertakes to replenish such stock

in the close of each month so as to keep it at the agreed value : Provided

always that the agent shall have no right of action against the principal for

delay resulting from shortage of stock, delays in transit accidents, strikes or

other unavoidable occurrence in replenishing such stock . The principal shall

always have the right without any prior notice to cause a stock checking of the

said goods and on any shortage or deficiency found on such stock-taking the

agent shall on demand pay to the principal the list price of such shortage or

deficiency less the deduction by way of commission or rebate receivable by the

agent. The agent shall not alter, remove, or tamper with the marks or numbers

on the goods so entrusted into his custody.10. That

the agent shall not sell the goods of the principal to any purchaser except at

the full current price list of the principal published by him from time to

time. The agent may while selling principals goods allow a discount or rebate

of .. per cent.11. That

in the event of any dispute arising between the agent and a purchaser of the

principals goods, the agent shall immediately inform the principal of the same

and shall not without the principals approval or consent in writing take any

legal proceedings in respect of or compromise such dispute or grant a release

to any purchaser of the principals goods.12. That

either party may terminate this agreement at his option at any time after the

expiration of..years by giving to the other one months notice in writings.13. That

the benefits under this agreement shall not be assignable to any other person.14. That

during the currency of this agreement the principal shall redirect all

inquiries or orders for principals goods received by him from persons residing

in the agency district of the said agent and in the event where the principal

supplies such purchasers directly he shall allow the agent the same commission

or rebate as the agent would have been entitled to retain if he had carried out

such transaction. A certificate under the signature of the principals

accountant of the amount of such commission or rebate payable to the agent

shall be conclusive evidence of such amount. Such remuneration shall be payable

to the agent (half-yearly or monthly). The agent undertakes to refer to the

principal all enquiries or orders for the principals goods from persons

residing outside the agency district of the agent and similar enquiries or

orders from persons residing in the agency district for the purpose of re-sale

outside the said district and the agent shall not be entitled to any commission

or rebate in respect of any sale resulting from any such enquiries or orders.15. That

the agent shall always during the existence of this agreement devote his whole

business, time and energy for pushing the sale of the principals goods and

shall in all such dealings act honestly and faithfully to the principal and

shall carry out orders and instructions and shall not engage or be interested

either directly or indirectly as agent or servant in any other business or

trade without the prior consent in writing of the principal.16. That

on the termination of his agreement for any reason whatsoever the agent shall

not for the period of one year solicit trade orders from the persons who had

been purchasers of the principals goods any time within (seven) years

immediately preceding the date of such termination and the agent shall not for

a period of one year engage or be interested as agent or servant in any

business, firm or company manufacturing, selling or dealing in goods similar to

those transacted by the principal.17. That

all goods shall be sold by the agent for delivery at agents place of business

but the agent shall at his own expenses have the right to deliver goods to

purchasers at their places of business.18. That

without prejudice to any other remedy he may have against the agent for any

breach or non-performance of any part of this agreement the principal shall

have the right summarily to terminate this agreement-i

On

the agent being found guilty of a breach of its provisions or being guilty of

misconduct or negligence of his duties.ii

On

the agent absenting himself from his business duties entrusted to him under the

agreement for four or five days without the principals prior permission in

writing :iii

On

the agent committing an act of bankruptcy.1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.16.17.18.19. That

in the event of any dispute arising out of or in relation to or touching with

the agreement the same shall be decided by arbitration in accordance with the

provision of the Arbitration Act of 1940.20. That

the principal shall be entitled to terminate this agreement by giving one

months notice in writing to the agent in the event of his ceasing to carry on

the said business of the principal.21. That

on the termination of this agreement for whatever reason the agent shall

forthwith deliver to the principal all the unsold stock of goods and shall pay

to the principal for the shortage or deficiency or stock at list prices less

commission and rebate allowable to the agent. The agent shall also deliver to

the charge of the principal all books of account and documents of the agency,

cash, cheques, bills of exchange or other securities he may have received

during the normal course as a result of sales of the principals goods and

shall transfer, assign or negotiate in favour of the principal all such securities

on demand.In

Witenss Whereof, the parties have signed this agreement on the day and year

first above written..

.(Agent)

(Principal)