Agreement for appointment of Sole Selling Agent by Manufacturing Company [CD1]
AN AGREEMENT made
on this
_____day of
_________________ BETWEEN ______________ Company, a company registered under
the companies Act 1956 manufacturers of___________(Hereinafter called the
manufacturers) of the one part AND_______________(Hereinafter called the sole
agent) of the other part.
WHEREAS
the manufacturers are engaged in the manufacture of _________and are desirous
of appointing a sole selling agent for the sale of the same.
AND
WHEREAS the sole agent has approached the manufacturers for appointment as the
sole selling agent for ___________ goods of the manufacturers and is willing to
perform the duties as such.
NOW
THIS AGREEMENT WITNESSES as follows:
1. The
manufacturers appoint ______________as the sole selling agent for the goods
manufactured by them for the area comprising_______________ as the sole agent
shall have exclusive right to sell the goods of the manufacturers in the above
mentioned area.
2. This
appointment is being made by the Board of Directors subject to the condition
that the appointment shall cease to be valid if it is not approved by the
company in the first general meeting held after the date of this appointment
(Approval by the company in the first general meeting held after the date of
appointment is mandatory under section 294 (2) of the Companies Act, 1956.
3. This
appointment shall last for a period of five years computed from the date of
this agreement. It may, however, be extended for further periods not exceeding
five years on each occasion. (Under section 294 (1) of the Companies Act, 1956,
no company shall appoint a sole selling agent for a term exceeding five years
at a time.)
4. The
manufacturers undertake not to sell their goods in retail below the following
prices.
5. The
sole agent shall not sell the goods in retail below the prices mentioned under
clause 4 of the agreement.
6. The
sole agent shall pay to the manufacturers the sale proceeds which shall be
determined as per the market value of the goods sold
7. The
manufacturers agree that as the Consideration payable to them depends upon the
market value of the goods sold by the Sole agent. It may fluctuate from year to
year.
8. The
sole agent shall be entitled to a commission of 3.5 % on the sale price of the
goods.
9. The
sole agent shall have 20 days credit for payment of price of goods after
receipt of goods.
10. The
manufacturers shall not affect direct sales of goods within the area mentioned
in clause (1). All inquiries, orders and correspondence which the manufacturers
receive in relation to that area shall be forwarded to the sole agent to be
dealt with.
11. The
sole agent may appoint sub-agents and representatives for the area covered by
the sole agency. The manufacturers shall not enter into any correspondence or
dealings, direct or indirect, with them.
12. The
manufacturers agree to execute the orders placed by the sole agent so far as
the goods available with them permit. Neither do the manufacturers guarantee
minimum supply of goods to the sole agent nor is the latter bound to place
order for any minimum quantity of goods.
13. In
case the terms of this appointment are varied by the Central Government in
exercise of its power under section 294 (5), Companies Act, 1956, this
appointment shall, as from the date as may be specified by the Central
Government in its order of variation of terms, be regulated by the terms and
conditions as varied by the Central Government.
IN WITNESS
WHEREOF the parties hereto have signed this agreement on the day and year first
written above.
Dated
this_______day of _____________
Name
& designation of First Party
Signature
In
presence of
Name
& designation of second party
Signature
In presence
of
[CD1]Agreement for appointment of Sole Selling
Agent by Manufacturing Company
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