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Agreement for appointment of Sole Selling Agent by Manufacturing Company

Document Cited in Related
Vincent
Updated atMarch 2010

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.

The sole agent shall not sell the goods in retail below the prices mentioned under clause 4 of the agreement.

The sole agent shall pay to the manufacturers the sale proceeds which shall be determined as per the market value of the goods sold

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...

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