Agreement between Producers of Cinematograph/Video Films and sole Agency for Distribution
THIS AGREEMENT made on this ……… day of ……… 20 , between [name of the producers], hereinafter called “the producers” of the ONE PART; and [name of sole agency] hereinafter called “the distributor” of the OTHER PART:
WHEREAS the producers are engaged in the production of several video films and has decided to appoint a distribution agent for the whole of India with canvassing rights and the distributor has agreed to work as such;and
WHEREAS the distributor is being appointed as sole selling agents having
exclusive right to sell the video films produced by the producers in whole of India;
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
- The producers appoints the distributor as sole selling agents for the sale of all the cinematograph/video films produced by it in the whole of India and the distributor agrees to act as such sole selling agents for the whole of India on the terms and conditions contained herein.;
- The appointment will be for a period of [months/years] commencing from the date of this agreement.
- The distributor shall canvass for, secure orders and push the sale of the cinematograph/video films produced by the producers to the best of its ability and experience in the whole of India and guarantees to secure orders for the sale of cinematograph/video films to the extent of the value of Rs. ………. in a year commencing from the date of this agreement.
- The distributor will advertise the producers’ films at its own cost and expenses by advertisements in newspapers, journals, magazines, cinema slides or by any other means. However, the producers may advertise at their own costs at its discretion whether in newspapers, journals, cinema slides or by any other means and shall indicate the name of the distributor as its sole selling agents.
- The distributor will be entitled to appoint sub-agents for any State/District or any particular area in the country and on such terms and conditions as the distributor may think fit. However the producers shall not be liable for any dealing between the distributor and its sub-agents.
- The distributor shall submit to the producers [weekly/monthly] return of the business secured.
- The distributor shall remit the money received by it in advance from the buyers to the producers and an account thereof shall be submitted to the producers every [day/date].
- The distributor shall not make any representation on behalf of the producers except in conformity with the instructions issued by the producers.
- The producers shall pay a commission of ……… % on all purchases received directly or indirectly from the buyers through the distributor, which have been executed by the producers. The producers shall make payment of the commission to the distributor at the end of every month.
- During the term of this contract, the distributor shall not sell or attempt to sell the cinematogaph/video films for any other Indian or foreign company.
- The agency may be terminated by the producers, at any time during the agency period of five years, after giving one month’s notice thereof, in case the distributor fails to comply with the instructions issued by it or if it omits to comply with its obligation imposed upon it under this agreement or if the distributor fails to obtain or procure orders for the minimum guaranteed amount or if the producers feels that the distributor is guilty of any conduct, which is prejudicial to the interest of the producers and in this matter the decision of the Board of Directors of the producers will be final. The distributor may also terminate this agreement at any time during the agency period, after giving one month’s notice thereof, if the producers without just cause withhold the payment of the commission due to the distributor under the agreement for a period of [months].
- The distributor shall be responsible to make the payment of the cinematograph/video films supplied by the producers on the orders received by the distributor, if the constituent to whom cinematograph/video films were supplied by the producers refuses to pay for the same within [months] of the receipt of cinematograph/video films. The distributor shall be liable as the surety for the payment of orders booked by it.
- The distributor shall deposit a sum of Rs………. with the producers to ensure the obligations imposed upon it under this agreement. The said sum shall not carry any interest. The said sum will be repayable to the distributor after [month] of the termination of the agreement after adjustment of accounts between the parties.
- Any and all disputes, controversies, differences arising between the parties hereto out of or in relation to this agreement or any breach thereof shall be finally settled by arbitration by two arbitrators, one to be appointed by each party to the dispute and the arbitrators shall, before taking upon themselves the burden of reference appoint an umpire. The award given by the arbitrators or umpire as the case may be, shall be, final and binding on the parties.
- At the termination of this agreement whether by efflux of time or otherwise, the producers shall not be liable to pay any commission to the distributor for the distribution after the expiry of agency period.
- This agreement shall be executed in duplicate. The producers shall retain the original and the agency the duplicate. Each party shall bear the stamp duty payable in respect of its copy.
IN WITNESS WHEREOF, the parties have executed this Agreement under seal as of the day and year first written above.
Name: ____________ Name: ______________