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Distributorship Agreement

Document Cited in Related
Vincent
Updated atMarch 2010

This agreement of DISTRIBUTORship is made on this 16th day of December 2006 between Nova Co. Ltd. a company registered under the English Companies Act, and carrying on business at …………………, hereinafter called the MANUFACTURER (which term shall include its successors and assigns) of the one part and Decor Co. Ltd. a company registered under the Companies Act 1956 and carrying on business at ……………………………, hereinafter referred to as the DISTRIBUTOR (which term shall unless excluded by or repugnant to the context shall include its successors and permitted nominees and assigns) of the other part.

Whereas the MANUFACTURER is manufacturing Tele-communications Instruments, Computers, Softwares and Hardwares and exporting and marketing them in India and abroad.

AND WHEREAS the MANUFACTURER intends to strengthen its distribution machinery in the backward areas in India and in unexplored areas in the East Asian markets.

And whereas the DISTRIBUTOR approached the MANUFACTURER for having the DISTRIBUTORship of the MANUFACTURER’s products in backward areas in India and unexplored areas in the East Asian and foreign markets.

And whereas the MANUFACTURER has agreed to the proposals of the DISTRIBUTOR on certain terms and conditions.

Now these presents witnesseth and the parties hereby agree as follows:

  1. The MANUFACTURER hereby appoints and the DISTRIBUTOR accepts such appointment as the Sole DISTRIBUTOR of the products of the MANUFACTURER in respect of its products and the areas mentioned in the Schedule hereunder.

  2. The DISTRIBUTOR will have to deposit by way of Security Money free from interest a sum of Rs. 6 lakhs before the MANUFACTURER delivers any goods to the DISTRIBUTOR. The DISTRIBUTOR agrees and undertakes to lift the products of the MANUFACTURER and store them in the DISTRIBUTOR’s godown for ultimate distribution to the wholesalers or retailers as the case may be.

  3. The DISTRIBUTOR agrees to lift such products of the MANUFACTURER not less than worth Rs. 5 lakhs at a time and always store in its godown goods worth not less than Rs. 4 lakhs.

  4. The DISTRIBUTOR hereby agrees and undertakes not to deal with similar products of any other MANUFACTURER in respect of the scheduled areas for which the DISTRIBUTOR has been offered the DISTRIBUTORship of the MANUFACTURER’s products.

  5. The DISTRIBUTOR shall ensure that the products are sold to the consumers at the prices marked on the commodities or on the packing.

  6. The MANUFACTURER will pay to the...

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