DEALERSHIP AGREEMENT BETWEEN A MANUFACTURING COMPANY AND FIRM

DEALERSHIP AGREEMENT BETWEEN A MANUFACTURING COMPANY AND FIRM

DEALERSHIP AGREEMENT BETWEEN A MANUFACTURING COMPANY AND FIRM

DEALERSHIP AGREEMENT BETWEEN A MANUFACTURING COMPANY AND FIRM

THIS AGREEMENT MADE ON THISday 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..,ShriShri.and Smt..w/o Shripartners, having its
main business place atand 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 :
4. That the company hereby appoints the firm as its dealer for selling its products, more particularly
   described in the Schedule annexed hereto.
5. That the agreement shall remain in force originally for three years commencing frombut may be
   renewed for similar periods on the terms and conditions as may be agreed by and between the parties
   hereto.
6. That the firm shall keep a minimum stock ofpieces each of the companys 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.
7. 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.
8. That the company shall supply to the firm publicity and advertisement material in sufficient quantity for
   display at the firms sales depot and for the distribution in its area of operation.
9. That the company shall bear 60% of the cost of maintaining the firms 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 firms running account maintained with the company at the end of
   each quarter.
10. 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.
11. The firm shall make all efforts for the promotion of the sale of the companys 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
    months 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.
12. The company hereby agrees and undertakes to supply to the firm its products as per the firms orders
    and on the company failing to supply the goods under the firms orders ,the firm shall be at liberty to
    terminate the agreement by giving the company one months 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
13. 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
14. 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