A
dealership agreement may be drawn somewhat on the following pattern:
THIS
AGREEMENT is made on the…………………... day of….……………… Two Thousand Two between ABC
Ltd. a company incorporated under the ____________and having its Registered
Office at….……………………... and its Manufacturing unit at….……………………... its Company
Secretary,
(hereinafter called "the
company", which expression shall, unless the context admits otherwise,
include its representatives) of the one part
and
Messrs…….……………………...………………... a
partnership firm comprising Mr….……………………..., Mr….……………………... and
Mr…………………………………... partners, having
its main business place at….……………………...,
….………………….……………………...……...and 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).
WHEREAS the company
is
manufacturing….……………………..….………….;
AND WHEREAS the firm has its own
marketing network and is selling goods of various branches and is desirous of
selling the goods of the company at a new sales outlet recently taken on rent
by it for the purpose and has communicated the same to the company;
AND WHEREAS 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 contained in this agreement.
NOW
THIS AGREEMENT WITNESSETH as under:
1.
That
the company hereby appoints the firm as its dealer to sell its products, more
specifically defined in the Schedule to this agreement, in the areas also
clearly defined in the said Schedule.
2.
The
agreement shall remain in force for one year commencing from….……………………... and
shall be renewable for similar periods on the agreed terms and conditions.
3.
The
firm shall keep a minimum stock of…….……………………... pieces each of the company's
products to meet the demand of the ultimate users/consumers, which quantity
shall be reviewed every quarter in the light of the sales during the previous
quarter and the market trends.
4.
The
company shall supply to the firm its products on fifteen days credit from the
date of the invoice and if payments are not made within the credit period shall
charge interest at the rate of….……………………... per cent per annum from the
sixteenth day of the invoice till payment.
5.
The
company shall supply to the firm sufficient quantities of publicity and
advertisement material for display at the firm's sales outlet and for
distribution in its area of operation.
6.
The
company shall bear 50% of the cost of maintaining the sales outlet of the firm
including rent thereof subject to a maximum of 5% of the invoice value of the
firm of all the products of the company, which amount shall be credited to the
firm's running account in the books of
the company at the end of each quarter.
7.
The
company and the firm shall settle their accounts every six months and the
balance credit/debit shall be squared by making payment by the party owing to
the other.
8.
The
firm shall make all efforts to promote the sale of the company's products and
in the event of the company forming an opinion on the basis of sale records
that the firm is not properly performing its duty as dealer, the company shall
be at liberty to terminate this agreement by giving the firm one month's notice
in writing and at the end of the notice period, this agreement shall stand
terminated and the parties shall settle their accounts within seven days of
such termination.
9.
The
company agrees and undertake to supply to the firm its products as per the
firm's orders and in the event of the company failing to supply the ordered
goods within fifteen days of receipt of each purchase order, the firm shall be
entitled to terminate the agreement by giving the company one month's notice in writing and at
the end of the notice period, this agreement shall stand terminated and the
parties shall settle their accounts within seven days of such termination.
10.
The
firm shall not sell any product of the company at a price higher than the one
indicated by the company from time to time.
11.
The
firm shall be at liberty to appoint sub-dealers, salesmen, commission agents or
other sales personnel on salary, commission or any other basis, so long as they
function in accordance with the provisions of this agreement and do not do
anything which is detrimental to the interest of the company, or the firm and
the collective interest of both.
Note: Any additional terms and
conditions of the appointment may be incorporated.
IN WITNESS THEREOF the parties
aforementioned have signed this agreement in the presence of the witnesses:
SCHEDULE
OF PRODUCTS
1. …………..….…………. 3. …………..….………….
2. …………..….…………. 4. …………..….………….
Witnesses:
(1) Name : for ABC Ltd.
Father's Name :
Address : (…………..….………….)
Signature : Company Secretary
(2) Name : Mr…………..….………….
Father's Name : Mr…………..….………….
Address : Mr…………..….………….
Signature :
Partners,
Messrs…………..….………….
0 Comments
Thank you for your response. It will help us to improve in the future.