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Model of Agency Contract

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60 views

Model of Agency Contract

Uploaded by

kuldeep singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MODEL OF AGENCY CONTRACT

This agreement is executed on


this.........................................................................................day
of....................................................between...................................................
.. (principal)

(hereinafter called “the principal”) of the one part


and........................................... (agent)

(hereinafter called “the agent”) of the other part.

Whereby it is agreed between the parties as follows:

1. That the agent is hereby appointed as the sole agent of the


principal for the

town............................... (in the District of) (hereinafter called “the agency


town”) for

the purpose of making sales of the products/goods of the principal for a


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

2. That the agent shall not, while selling the products/goods of the principal
make any representation in the trade or give any warranty other than those
contained in the principal’s printed price list.

3. That the agent shall be allowed to deduct and retain as his agency
commission with

himself.................per cent of the list price of all products/goods sold on


behalf of the principal. The agent shall keep a record of all sales and shall
regularly remit to the principal on each Saturday all sums received by the
agent in respect of such sales less.................. per cent his agency
commission. All sales shall be made for cash against delivery of goods
unless the principal’s consent in writing to give credit to any particular
purchaser be in any case first obtained and in the case of such credit sales
the principal may direct for such increase in the price of his products/goods
over and above the current list price of the principal.

4. That the agent shall not make purchases on behalf of or 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 full value against all available
risks, all the goods entrusted to his custody by the principal under this
agreement and on request, 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. That the agent shall bear all expenses relating to or
incidental to the said agency.

6. That the agent, while selling to persons in the trade, shall obtain the
purchaser’s

signature to an agreement to the following effect:

(i) That the said products/goods of the principal shall not directly or
indirectly be re-sold outside the agency district.

(ii) That the said products/goods of the principal shall not be re-sold to the
public below the price list for the time being.
7. That the agent shall, in all his commercial dealings and on documents
and on the

name-plate or letter-head indicating his place of business, describe himself


as selling

agent for the principal.

8. That a breach of the condition in clause 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
principal’s goods shall duly enter into, and carry out the aforesaid
agreement referred to in clause 6 hereof for the purposes of this agreement
be deemed to be a breach of clause 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 principal’s current price list and the principal further undertakes to
replenish such stock on 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 occurrences in replenishing
such stock. The principal shall always have the right, without any prior
notice, to cause a stock checking of the said products/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 products/goods so entrusted into his custody.
10. That the agent shall not sell the goods of the principal to any purchaser
except at current price list of the principal conveyed by him from time to
time. The agent may, however, 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 products/goods of the principal, the agent shall
immediately inform the principal of the same and shall not without the
principal’s 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 products/goods of the principal.

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

expiration of...... years by giving the other one month’s notice in writing.

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

14. That the agent shall always, during the existence of this agreement,
devote his whole business time and energy for pushing the sale of the
products/goods of the principal 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.
15. 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 products/goods of the principal
any time within.................. 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 products/goods similar to those of the
principal.

16. That all products/goods shall be sold by the agent for delivery at
agent’s place of business but the agent shall, at his own expense, have the
right to deliver products/goods to purchasers at their places of business.

17. 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; or

(ii) on the agent absenting himself from his business duties entrusted
to him under

this agreement for...................................... days without the


principal’s prior

permission in writing; or

(iii) on the agent committing an act of bankruptcy.


18. That in the event of any dispute arising out of or in relation to or
touching upon the agreement, the same shall be decided by arbitration in
accordance with the provisions of the Arbitration and Conciliation Act, 1996
by the Arbitrator appointed with mutual consent.

1. The award of the Arbitrator shall be final, conclusive and binding upon
the Parties, and the provisions of the [Indian] Arbitration and Conciliation
Act, 1996 shall apply.

2. The rights and obligations of the Parties under, or pursuant to, this
Clause, including the arbitration agreement in this Clause, shall be
governed by and be subject to Indian law, and the agreement shall be
subject to the exclusive jurisdiction of the courts at _____________. (place
to be named as per the agreement between the parties).

19. That the principal shall be entitled to terminate this agreement by one
month’s notice in writing to the agent in the event of his ceasing to carry on
the said business of the principal.

20. That on the termination of this agreement for whatever reason, the
agent shall forthwith deliver to the principal all the unsold stock of
products/goods and shall pay to the principal for the shortages of deficiency
of stock at price list 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 products/goods of the principal and shall transfer, assign or
negotiate in favour of the principal all such securities on demand.

IN WITNESS WHEREOF the parties have signed this deed.

Witness:
Principal

Witness:
Agent

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