Adam Frankel
General Counsel · Technology & AI
15+ years as General Counsel to technology, cloud & AI companies
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About this template
What is this template?
This document is a formal commercial agency contract for the sale of physical products through a local agent. It includes specific financial mechanics for Saturday remittances, liquidated damages for territory breaches, and mandatory arbitration under Indian law. It is not a general employment agreement or a simple distributor purchase agreement.
When should you use it?
Use this when a business wants to appoint a single representative to manage sales and stock in a specific geographic town. If the relationship is for the purchase and resale of goods on the agent's own account, use a Distribution Agreement instead.
What's inside
| Clause | Name | What it does |
|---|---|---|
| 1 | Appointment of Agent | The Agent is appointed as the sole agent for a specific town for a term of [number] years. |
| 3 | Commission and Remittance | The Agent retains a percentage commission from sales and must remit all other received sums to the Principal every Saturday. |
| 9 | Maintenance of Stock | The Principal must maintain a stock of goods with the Agent to the value of [Rs. amount] and replenish it monthly. |
| 8 | Liquidated Damages | The Agent must pay a specific sum of [Rs. amount] for every article sold in breach of territory or price restrictions. |
| 12 | Termination by Notice | Either party may terminate the agreement after an initial period of [number] years by providing one month's written notice. |
| 15 | Post-Termination Restrictions | The Agent is prohibited from soliciting former customers or engaging in similar businesses for one year after termination. |
| 18 | Arbitration | Disputes are settled via arbitration under the Arbitration and Conciliation Act 1996 by a mutually appointed arbitrator. |
Who it's for
- a manufacturer appointing an exclusive sales representative for a specific Indian district or town
- a commercial agent seeking a commission-based arrangement with stock provided by the principal
- parties requiring a liquidated damages clause for breaches of territory or price list restrictions
How long it runs and how it's signed
How long
Runs for a fixed period
Stated duration
[term length] years
Notice to end it
one month
Survives the end
Post-Termination Restrictions, Arbitration
Signed by
Principal, Agent
Witness
Required
Notarisation
Not required
Also needed
Two witnesses required
Law it's drafted under
Governed by
Arbitration and Conciliation Act, 1996
Jurisdiction
India
Document info
GitLaw document. Document created on Fri Jun 26th, 2026. Last updated on Fri Jul 3rd, 2026.
This document is public
Licensed under CC BY 4.0 (Attribution).
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