DEALERSHIP AGREEMENT BETWEEN A MANUFACTURING COMPANY AND FIRM

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