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Agreement for sole agency for purchase of specified classes of goods within a specified area

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Category:Commercial Transactions

memorandum of agreement detailing the necessary terms for the purchase of certain goods within certain areas.
Agreement for Sole Agency for Purchase of Specified Classes of Goods within a Specified Area

The model contract accessed on www.LawyersEzyFind.co.za encompasses the
most commonly accepted provisions governing the relationship between a principal and an agent.

The place (territory) where the agent will market the goods as well as the type of goods that will be marketed is defined in the contract, which is
important when the principal requires an agreement which controls and specifies the territory and products to be marketed.

The contract is intended for use in connection with the introduction, promotion, negotiation and conclusion of sales of products or services
by an independent agent on behalf of a principal, within a defined territory.

A main reason to appoint an agent is that the principal is unable to carry out the introduction, promotion, negotiation and conclusion of sales of
products or services in a particular territory by itself, or is unwilling to make the necessary investments that are required.

The agent’s strength lies in its contacts with customers and its weakness derives from the fact that such customers belong to the
principal. This explains why, in many countries, such as EU countries, public policy laws aim to protect the Agent’s rights, especially upon the termination of the contract.

The parties are subject to mandatory legal provisions of public policy that may apply regardless of the law of the contract chosen by the
parties. Such provisions are binding, which means that the parties cannot ignore or decide not to apply them. These provisions may restrict
the validity of certain provisions of the contract, and may allow a court to reduce or extend the obligations of the parties.
Before any discussion takes place between the parties, it is therefore strongly recommended to check whether the agency contract
contemplated may be impacted by such laws.

The main purpose of the contract is to establish the level of each party’s obligations towards the other, such as the authority of the agent to
commit to the principal, to receive payments on his behalf, the obligation for the principal to accept the orders transmitted by the agent, the
information which the principal should pass on to the agent, such as the minimum overall orders, any change in the range of products or
services, price, minimum orders, advertising, fairs and exhibitions, internet sales, non-competition, trademarks and property rights,
exclusivity, commissions, consequences on termination, and assignment and appointment of sub-agents.

Parties should review alternatives and options proposed in order to strike those that are irrelevant to the parties’ common intentions.

Standard provisions have been incorporated, including financial responsibility of the agent , force majeure and change of circumstances (hardship).

Obligations of the agent
In performing its activities, the agent shall look after the principals interests and act dutifully and in good faith.

International commercial agency
The agent shall introduce the product(s) or service(s) and promote the sale of such product(s) or services in the territory and in the promotion
channels in accordance with the terms agreed in this contract. The agent has no authority to make contracts on behalf of, or in any way to bind the
principal, but it shall pass any offer received to the principal.

Where the agent has the authority to bind the principal
The agent is not entitled to receive payments in the name and on behalf of the principal without its prior written authorization to that effect. If the
agent has been authorized, it must transmit the payments as soon as possible to the principal and until then hold them separately on deposit on the principals behalf.

The agent shall strictly observe the contractual provisions communicated by the principal and shall bring to the attention of the
customers the terms and conditions of sale (particularly the delivery period, price and payment) communicated by the principal.

The agent shall with due diligence keep the principal informed about its activity, the market conditions and the state of competition. The agent
shall provide all the necessary information in to the principal available to it concerning the laws and regulations within the territory that shall apply
to the product(s) or service(s) as well as its activity. The agent shall further send every (three months) a report on its activities.

The agent shall perform its activity independently and shall, in no case, be considered as an employee of the principal.

Restriction of territory
The agent shall not solicit orders (or negotiate and conclude contracts) outside the territory, unless expressly agreed by the principal.
The agent shall notify the principal of any inquiry received from outside the territory. Such notification shall not entitle the agent to any commission.

Force majeure – excuse for non-performance
Force majeure means war, emergency, accident, fire, earthquake, flood, storm, industrial strike or other impediment which the affected party
proves was beyond its control and that it could not reasonably be expected to have taken the impediment into account at the time of the
conclusion of this contract or to have avoided or overcome it or its consequences.

A party affected by force majeure shall not be deemed to be in breach of this contract, or otherwise be liable to the other, by reason of any delay
in performance, or the non-performance, of any of its obligations under this contract to the extent that the delay or non-performance is due to
any force majeure of which it has notified the other party.

The time for performance of that obligation shall be extended accordingly.

If any force majeure occurs in relation to either party which affects or is likely to affect the performance of any of its obligations under this
contract, it shall notify the other party within a reasonable time as to the nature and extent of the circumstances in question and their effect on its ability to perform.

If the performance by either party of any of its obligations under this contract is prevented or delayed by force majeure for a continuous
period in excess of three months, the other party shall be entitled to terminate this contract by giving written notice to the party affected by the force majeure.

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