Exclusive Agency Contract (India)

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.

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