FOCUS 1. 2. The agent will take pains to conduct transactions for the principal and is bound to serve the interests of the principal to the best of his ability

Agency Contract

1. Messrs.... (principal) of... entrust Messrs.... (manufacturers’ agent) of... with their sole agency for the territory... with the sale of the following products:....

2. The agent will take pains to conduct transactions for the principal and is bound to serve the interests of the principal to the best of his ability. He will do his best to provide all information necessary for the purpose of promoting business, and especially inform the principal immediately about every order received. He may not deviate from the prices, conditions of delivery and payment of the principal without his consent.

3. The principal will provide the agent with all necessary samples and with advertising matter free of charge, duties, and carriage. The samples remain the property of the principal, if they are not intended for consumption, and will be returned by the agent on request and at the expense of the principal.

The principal will supply the agent at all times with all information of importance for conducting transactions, furthermore he will inform him without delay especially of the acceptance or refusal of orders. He will also inform the agent, if there is a possibility that he can only accept orders to a limited extent.

The agent will be supplied with copies of correspondence with firms in his territory and of all invoices.

4. The agent is only entitled to collect money from the customer in the case of express authorization.

5. The commission will be... % (in letters...) of the invoice amount for all transactions, direct and indirect, carried out with customers in the territory mentioned under No.1.

The principal will furnish the agent with a statement of commission due for all deliveries made during the quarter of the year not later than the 15th of the following month. This commission, to which according to such statement the agent is entitled, falls due on the day the statement is forwarded.

The agent’s claim for commission expires only in respect of any delivery for which it is certain that the customer will not pay; commission that has already been received must be repaid.

The agent is entitled to commission if it is certain that the principal has not carried out transactions or not completed them as agreed, unless the principal can prove he is not responsible.

6. The principal will reimburse the agent for the following expenses:....

7. The contract shall come into force on... 20... and is for a period of.... year(s).

8. The agreement can be terminated by either party thereto giving... months’ notice, given by registered letter. Should the contract have been conducted for a definite period, then it shall be extended automatically for a further like period provided that notice of termination has not been given within the agreed time to take effect at the end of the period contracted for.

9. In other respects the law valid at the seat of the agent is applicable to this agreement.

10. Amendments and supplements to this contract are to be confirmed in writing.

Place: _______________________________

Date: _______________________________

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(signature of principal)

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(signature of agent)