Dealership
Agreement between a Manufacturing Company and Firm

This
agreement made on this……………day of…………….between chandika & co. Ltd., a
company incorporated under the companies act, 1956 and having its registered
office at …………(hereinafter called the ‘company’ which expression shall, unless
the context admits otherwise, includes its representatives) of the one part and
jumb & jumboo, a partnership firm consisting of
shri……………..,shri……………………shri……………….and smt……………..w/o shri…………………partners,
having its main business place at………………and branches at………….. And
……………..(hereinafter called “the firm” which expression shall, unless the context
admits otherwise, include the partners, their heirs, executors, administrators,
representatives and assigns) of the other part.

Whereas

1.    
The
company manufacturers cotton and polyster fibre yarn suitings and shirtings.

2.    
The
firm has its own well-established marketing network and is selling goods of
various manufactures and is desirous of selling the goods of the company at a
new sales depot recently taken by it on rent for the purpose.

3.    
The
company, after having considered the proposal of the firm, has agreed to
appoint the firm as its dealer on the terms and conditions as hereinafter
appearing.

Now
this agreement witnesses as under :

1.    
That
the company hereby appoints the firm as its dealer for selling its products,
more particularly described in the schedule annexed hereto.

2.    
That
the agreement shall remain in force originally for three years commencing
from…………but may be renewed for similar periods on the terms and conditions as
may be agreed by and between the parties hereto.

3.    
That
the firm shall keep a minimum stock of…………pieces each of the company’s products
described in the schedule to meet the demand of the ultimate users/consumers,
and such quantity shall be reviewed every quarter in the light of the sales
during the previous quarter the demands, consumers likings and the market
trends.

4.    
That
the company shall supply to the firm its products on credit for fifteen days
from the date of the invoice and shall charge interest at the rate of………….per
cent per annum from the sixteenth day of the invoice till payment in full if
payments are not made within the period credit aforesaid.

5.    
That
the company shall supply to the firm publicity and advertisement material in
sufficient quantity for display at the firm’s sales depot and for the
distribution in its area of operation.

6.    
That
the company shall bear 60% of the cost of maintaining the firm’s sales depot
including rent thereof subject to a maximum of 6% of the invoice value of all
the products of the company sold to the firm, which amounts shall be credited
to the firm’s running account maintained with the company at the end of each
quarter.

7.    
That
the accounts between the parties will be settled half-yearly and the
credit/debit balance shall be squared up by making necessary payment6s by the
parties.

8.    
The
firm shall make all efforts for the promotion of the sale of the company’s
products and in the event of the company being of opinion on the basis of sale
records that the firm is failing in properly performing its duty as dealer, the
company shall be at liberty to terminate this agreement by giving the firm one
month’s notice in writing and on the expiry of the notice period, this
agreement shall stand terminated and the parties shall settle their accounts
within a week thereafter.

9.    
The
company hereby agrees and undertakes to supply to the firm its products as per
the firm’s orders and on the company failing to supply the goods under the
firm’s orders ,the firm shall be at liberty to terminate the agreement by
giving the company one month’s notice in writing and after the expiry of the
notice period, this agreement shall stand terminated and the parties shall
settle their accounts within a week thereafter

10.  The
firm shall at no time sell any product of the company at a price higher than
that fixed by the company from time to time

11.  The
firm shall be free and entitled to appoint sub-dealers, salesmen, commission
agents or other sales personnel on salary, commission or any other basis, but
with the condition that they will function in accordance with the provisions of
this agreement and not do anything which is detrimental to the interest of the
company, or the firm and the collective interests of both.

In
witness whereof, etc.

Schedule
reprred to above

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