Agreement between a Company and Its Branch Manager (India) by OLL
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AGREEMENT BETWEEN A COMPANY AND ITS BRANCH MANAGER
THIS AGREEMENT made at...................... this.................. day of .................... 200___, between ABC Co. Ltd., a company incorporated under the Companies Act, 1956 and having its registered office at ......................... (Hereinafter called the company of the ONE PART) and Mr. X s/o........................... resident of........................ (Hereinafter called Mr. X of the OTHER PART).
WHEREAS the company is engaged in the manufacturing and sale of computers and other electronic gadgets and is desirous to open a branch at Bombay to look after the sale of its products in the States of Maharashtra & Gujarat.
AND WHEREAS the company is interested to appoint a Manager for the new branch office, who can look after its business interest and promote sale of its products in the States of Maharashtra & Gujarat;
AND WHEREAS Mr. X is experienced in sale of consumer goods and management of office and he has offered his service to the company for the post of branch manager, which the company has agreed.
NOW THIS AGREEMENT WITNESSETH that it has been agreed between the parties as follows:
1. The company appoints Mr. X for a period of five years as branch manager of its Bombay branch at a salary of Rs................ per month and commission at the rate of................... % on the entire sale in the States of Maharashtra & Gujarat.
2. Mr. X will devote his full time, skill and attention to the company business. He will also ensure the promotion of sales of the company products in the territories covered by the branch by canvassing by different modes as he deems fit.
3. Mr. X will not engage in any other business or service during the tenure of his service with the company.
4. Mr. X will maintain proper accounts and other records of the branch office which should show the income, expenditure, goods received, sold and in balance and other necessary details which are necessary in such business. The necessary vouchers, receipts and supporting documents will also be maintained properly. The accounts, records and other documents will be open to inspection to the company's representatives.
5. Mr. X will look after the interests of the company in the territories covered by the branch and if he comes to know about the misuse of patent and trade mark of the company products or any developments which may be necessary for the company for its business, he shall immediately advise the company about the same.
6. Mr. X will work under the instructions and orders of the company issued from time to time. Mr. X will immediately furnish information or data called by the company from time to time.
7. The company can terminate Mr. X before the period of expiry of this agreement by giving three months notice or salary for three months in lieu thereof, without assigning any reason and A will have no right against the company in the case of premature termination of service.
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This document is a formal agreement used to appoint a manager for a company's specific branch office. It outlines the manager's duties regarding sales promotion, financial record-keeping, and the protection of company intellectual property, while also specifying compensation, commission, and termination notice periods.
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About this template
What is this template?
This is a fixed-term senior employment contract specifically for managing a regional branch office. It is not a general sales agent agreement, as it requires the manager to handle office records, vouchers, and local IP monitoring.
When should you use it?
Use this when hiring a dedicated individual to run a physical regional office and manage territory sales. Use an independent sales agency agreement instead if the person will not be an employee or managing a company-owned branch.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Appointment and Compensation | The Company appoints the Branch Manager for 5 years at a stated monthly salary plus a percentage commission on all regional sales. |
| 2 & 3 | Duties and Exclusivity | The Branch Manager must devote full time to the business and is prohibited from engaging in other business during their tenure. |
| 4 | Accounts and Inspection | The Branch Manager must maintain records of goods received and sold, which remain open for inspection by Company representatives. |
| 5 | Protection of Interests | The Branch Manager is required to advise the Company immediately regarding any misuse of its patent or trade mark in the territory. |
| 7 | Termination | The Company may terminate the agreement early by providing 3 months notice or salary in lieu of notice without assigning reasons. |
| 8 | Reimbursement | The Branch Manager receives reimbursement for tour expenses at rates consistent with the Company's senior executives. |
Who it's for
- an Indian manufacturing company opening a new branch office in Bombay to cover Maharashtra and Gujarat
- a company appointing a manager to oversee sales, office management, and patent protection in a specific regional territory
- an executive entering a five-year management contract involving both fixed salary and sales-based commission
How long it runs and how it's signed
Law it's drafted under
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