This agreement establishes the formal relationship between a company and an individual as the branch manager of the company's branch. It outlines the rights, responsibilities, and obligations of both parties during the term of the agreement.
By entering into this agreement, a company aims to ensure efficient management of its branch operations and the successful promotion and sale of its products a particular state of India. Likewise, the individual in question also wish to accept the role and responsibilities of the branch manager, dedicating his time and expertise to the company's business objectives.
This agreement serves as a legally binding contract that provides clarity and protection for both parties involved. It is advisable for the agreement to be reviewed and executed in accordance with applicable laws and regulations to ensure its validity.
The major provisions that this contract covers include:
By incorporating these provisions, the agreement establishes a clear framework for their professional relationship.
This contract does not necessarily require being printed on stamp paper or notarized by a Notorary Public. However, notorization add an extra layer of authentication, making the document legally enforceable in the eyes of the law.
THIS AGREEMENT made at......................
this.................. day of .................... 200___, between ABC Co.
Ltd., a company incorporated under the Companies Act, 2013 and having its
registered office at ......................... (Hereinafter called the
company of the ONE PART) and Mr. X s/o........................... resident
of........................ (Hereinafter called Mr. X of the OTHER
PART).
WHEREAS the company is engaged in the manufacturing and sale of computers
and other electronic gadgets and is desirous to open a branch at Bombay to
look after the sale of its products in the States of Maharashtra &
Gujarat.
AND WHEREAS the company is interested to appoint a Manager for the new
branch office, who can look after its business interest and promote sale of
its products in the States of Maharashtra & Gujarat;
NOW THIS AGREEMENT WITNESSETH that it has been agreed between the parties as
follows:
The company appoints Mr. X as the branch manager of its Bombay branch for a period of five years. Mr. X's primary responsibility is to oversee the sales of the company's products in the States of Maharashtra & Gujarat. In addition to a fixed monthly salary of Rs................, Mr. X will receive a commission at the rate of................... % on the entire sale in the specified territories.
As part of his role, Mr. X is required to devote his full time, skill, and attention to the company's business. He is also responsible for promoting the sales of the company's products in the covered territories through various modes of canvassing.
In this article, we will delve into the provisions of an exclusive service agreement between a company and one of its employees, Mr. X. The agreement is designed to ensure that Mr. X's dedication remains solely towards the company's operations and prevents potential conflicts of interest. We will explore the key clauses of this agreement, which focus on the maintenance of accounts and records, protection of the company's interests, compliance with company instructions, termination clause, reimbursement of tour expenses, modifications, governing law, severability, entire agreement, waiver, and assignment.
Mr. X, as the branch manager, holds the responsibility of maintaining accurate accounts and records for the branch office. These records encompass details of income, expenditure, goods received and sold, as well as other necessary information pertinent to the business. The maintenance of these records is crucial in tracking the financial health of the branch and ensuring transparency in the company's operations.
Mr. X is obligated to adhere to the instructions and orders issued by the company as part of his duties. This compliance ensures efficient and streamlined operations within the organization. Additionally, he must promptly provide any information or data requested by the company, thus fostering transparent communication between the branch and the headquarters.
The agreement allows the company to terminate Mr. X's employment before the completion of the five-year term. In such cases, the company must give three months' notice or pay Mr. X's salary for three months in lieu of notice. No specific reason is required for termination, and Mr. X relinquishes any claims against the company in the event of premature termination. This clause allows flexibility in employment, balancing the interests of both the company and the employee.
It is also agreed that given the nature of Mr. X's role, he may need to travel for official purposes. As part of his duties, he is entitled to reimbursement of tour expenses at rates similar to those provided to other senior executives of the company. This provision ensures that Mr. X is not burdened with personal expenses incurred during official travel, promoting fair and equitable treatment within the organization.
This agreement may only be modified or amended in writing, signed by both parties. Any verbal agreements or understandings will not be considered valid. This clause is intended to ensure clarity and legal enforceability of any changes to the agreement.
Verbal agreements or understandings will not be considered valid unless they are documented in writing and mutually agreed upon. This clause prioritizes clarity and ensures that any changes to the agreement are formalized in a legally binding manner.
The agreement shall be governed by and construed in accordance with the laws of the jurisdiction where it is executed. In the event of any disputes or disagreements arising from this agreement, the parties agree to submit to the exclusive jurisdiction of the courts in that jurisdiction. This provision establishes a legal framework to resolve any potential conflicts arising from the agreement.
In case any provision of this agreement is found to be invalid, illegal, or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue to be valid and enforceable to the fullest extent permitted by law. This ensures that if any part of the agreement is deemed unenforceable, the rest of the agreement remains intact and effective, maintaining the overall validity of the contract.
This agreement constitutes the entire understanding and agreement between the company and Mr. X regarding the subject matter discussed herein. It supersedes all prior negotiations, agreements, or understandings, whether written or oral, relating to the same subject matter. By including this clause, both parties acknowledge that any previous discussions or arrangements are rendered null and void, and the current written agreement holds precedence.
Any failure or delay by either party to enforce any provision of this agreement shall not be deemed a waiver of that provision or any other provision of this agreement. The waiver of any breach of this agreement shall not constitute a waiver of any subsequent breach. This clause emphasizes that any tolerance or leniency in enforcing the terms of the agreement on one occasion does not imply a permanent waiver of those rights. Both parties retain the right to enforce the agreement's provisions in the future if necessary.
Neither party shall assign or transfer any rights or obligations under this agreement without the prior written consent of the other party. This clause prevents either party from unilaterally transferring their rights or responsibilities under the agreement to a third party without obtaining formal approval from the other party. It ensures that both parties remain bound by the terms they originally agreed upon and that any change in the arrangement requires mutual consent.
In witness whereof, the parties have executed this agreement as of the date first above mentioned.
Signed and delivered by the within-named company:
ABC Co. Ltd. through the hands of Mr. A,
Managing Director, Authorized Official
Signed and delivered by the within-named Mr. X:
Witnesses:
