Agreement To Appoint Agent In District Legal Draft Template

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 ;and2.

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.

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................................................................................... .............................Principal2.

Name..................................... .

................................AgentAddress.................................................................................