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Distributorship Agreement Final Draft
Distributorship Agreement Final Draft
THIS AGREEMENT of Distributorship is made on this 1st day of Feb 2020 BY AND BETWEEN:
Shri Ranveer Singh , Director, M/s Dytron Marketing Services Pvt. Ltd., Registered Office at
‘1st floor, 103A, Chandan Niketan ,52A Shakespeare Sarani, Kolkata, West Bengal, PIN: 700
017, (hereinafter referred to as the ‘Company’)of the FIRST PART;
-And-
WHEREAS:
The ‘Company’ is a manufacturer of Iron & Steel, having Integrated Steel plant at Vill-Malkita,
P.O. Bhita, P.S.-Dewan Dighi, Distt. Purba Burdwan-713102, West Bengal, it manufactures
TMT bars of various sizes and grades, (hereinafter referred to as ‘Product’).
COMPANY has determined to enhance the development of the market and increase the sales
of its Product in the Territory of West Bengal(hereinafter referred to as the ‘Market Area’), by
which it would be advantageous to co-ordinate its Product distribution activities with a
distributor in the Territory who possesses a readily available and extensive sales network in
the Territory; and
DISTRIBUTOR wishes to enter into this Agreement with COMPANY whereby DISTRIBUTOR
will undertake the distribution and sale of Products of the company in the said Territory on
the terms and subject to the conditions contained herein;
NOW THEREFORE THIS AGREEMENT WITNESSES thatin consideration of the mutual promises
and covenants herein contained and for other good and valuable consideration (the receipt
and sufficiency of which are hereby acknowledged) the parties hereby agree as follows:
1) TERM:
The initial term of this Agreement shall come into effect on and from 1 stFebruary,
2020 and, unless terminated earlier in accordance with the terms of this Agreement,
shall continue in full force and effect during the financial year 2020-21 that is till 31 st
March, 2021 (the “Initial Term”).
2) SCOPE:
(II) The Company holds rights to fix a Targeted Monthly Sales for the Market
Area, and the Distributor shall adhere to the same and make his honest
efforts to reach the same.
(III) The Distributor will SELL, MARKET and PROMOTE the Company’s Brand and
Product within the assigned Market Area only. The Distributor will appoint
the Dealers for retailing the Company’s product different points of the
assigned Market Area.
(IV) The Distributor will visit and cater the Company’s product to the dealers or
retailers from time to time. The Distributor will book the orders from the
dealers and retailers against mutually agreed terms and conditions between
themselves.
(V) The Distributor will also have the right to Represent, Market and Sell the
Company’s products in Government, Semi-Government, Private Institutions
and Companies.
(VI) The Company will not allow any direct or indirect sale to any retailer or
trader in the assigned Market Area, whereas the Company will have right to
market and sell its products directly or through its channel partner to the
Government, Semi-Government, Private Institutions and Companies for
their construction projects in the assigned Market Area.
(VII) The Company will appoint its representatives to cater and promote its
Brand and Product in the Market Area along with the Distributor, on time to
time basis. The Company will provide Marketing and Promotional Support
for making its brand visible to the public and will carry events to spread
awareness about the quality of products of the company, as per the
Company’s norms.
3) ORDER EXECUSION:
(I) The Distributor will raise the orders in favour of the Company in writing or
via email, on the pre declared prevailing rates of the Company and the
orders will be confirmed only after acceptance from the Company’s office.
The Company will have rights to reject the orders without assigning any
reasons for the same.
(II) The Company will accept the orders against advance Payment from
distributer.
(III) The Company will sell its product on EX-FACTORY basis, and the
Transportation shall be arranged by the Distributor on its own risk and
liability. The Company will allow the loading only to the vehicles authorised
by the Distributor. The company will raise its Sales Bills and Invoices in the
name of the partyauthorised by the Distributor.
4) PAYMENTS:
(I) The Distributors will carry the sole responsibility of making the payments
against the Sales Bills & Invoices raised by the Company in the name of the
Distributor or the third party authorised by the Distributor. The Distributor
will assure the receipt of the payments to the Company’s bank account
within the agreed time period.
5) GENERAL:
(I) The Distributor and the Company will share the Market reports, information
and data with each other for the growth of market share of the product in
the Market Area. The Distributor shall update the Company regarding any
appointment and discontinuation of its Dealer and assign reasons for the
same.
(II) The Distributor shall submit monthly lifting details dealer wise to the
Company for records up keeping.
(III) The Accounts ledger should be reconciled between the parties for every
month.
(IV) The Distributor will raise its bills for the Commissions and Expenses on
Financial Quarterly basis only and the same shall be settled by the Company
within 30 days from its receipt. A prior approval must be taken from the
Company for any expenses made on behalf of the Company.
(V) The Distributor must inform the Company prior hand in writing about any
change in constitution of its firm orany change, removal, addition of its
partner/s.
(VI) The Distributor shall carry all its business transactions with the legal means
and within the frame of law, the Company shall be held no responsible for
any wrong doings by the Distributor or its associates.
(10)FORCE MAJEURE:
No failure or omission by COMPANY or DISTRIBUTOR in the performance of any
obligation under this Agreement shall be deemed a breach of this Agreement or
create any liability if the same arises on account of force majeure, which term shall
include any event or cause beyond the control of COMPANY or DISTRIBUTOR, as the
case may be, including but not restricted to acts of God, acts or omissions of any
government, or agency thereof, rebellion, insurrection, riot, sabotage, invasion,
quarantine, restrictions, strike, lock out and transportation embargoes, provided
that the party relying on this Section shall forthwith after any such event give written
notice to the other party of its inability to perform such obligation and the reasons
therefore. If force majeure continues for a period of more than three (3) months,
without the parties hereto being able to develop an alternative satisfactory
arrangement, then either party has the option of immediately terminating this
Agreement.
(11) DISPUTE RESOLUTION:
The Parties herein will attempt in good faith to resolve any dispute or claim arising
out of or in relation to this Agreement through negotiations between a senior and
higher level functionary of each of the Parties with authority to settle the relevant
dispute. If the dispute cannot be settled amicably within fourteen (14) days from the
date on which either Party has served written notice on the other of the dispute then
it will be referred to the Arbitration in accordance with the provisions of Arbitration
and Conciliation Act, 1996 as amended up to date and shall be subject to KOLKATA
jurisdiction only. Arbitrator to be appointed by the Company. The place of
Arbitration shall be Kolkata.
This agreement is signed on this day 1stFebruary, 2020 in the presence of witness below:-
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WITNESSES:
1)___________________________ 2)_________________________
_____________________________ ___________________________
_____________________________ ___________________________