Sales Agency Agreement
This Agreement is entered into between the parties concerned on the basis of equality and mutual benefit to develop business on terms and conditions mutually agreed upon as follows:
Supplier: （hereinafter called “party A”）
Agent:（hereinafter called “party B”）
Party A hereby appoint Party B to act as his selling agent to sell the commodity mentioned below.
Commodity and Quantity or Amount
It is mutually agreed that Party B shall undertake to sell not less than... of the aforesaid commodity in the duration of this Agreement。
In ... only.
Confirmation of Orders
The quantities, prices and shipments of the commodities stated in this Agreement shall be confirmed in each transaction, the particulars of which are to be specified in the Sales Confirmation signed by the two parties hereto.
After confirmation of the order, Party B shall arrange to open a confirmed, irrevocable L/C available by draft at sight in favour of Party A within the time stipulated in the relevant S/C. Party B shall also notify Party A immediately after L/C is opened so that Party A can get prepared for delivery.
Upon the expiration of the Agreement and Party B‘s fullfilment of the total turnover mentioned in Article 2, Party A shall pay to Party B... % commission on the basis of the aggregate amount of the invoice value against the shipments effected.
Reports on Market Conditions
Party B shall forward once every three months to party A detailed reports on current market conditions and of consumers‘ comments. Meanwhile, Party B shall,from time to time, send to party A samples of similar commodities offered by other suppliers, together with their prices, sales information and advertising materials.
Advertising & Publicity Expenses
Party B shall bear all expenses for advertising and publicity within the aforementioned territory in the duration of this Agreement and submit to Party A all patterns and/or drawings and description for prior approval.
Validity of Agreement
This Agreement, after its being signed by the parties concerned, shall remain in force for... days from ... to ... If either Party wishes to extend this Agreement, he shall notice, in writing, the other party one month prior to its expiration. The matter shall be decided by the agreement and by consent of the parties hereto. Should either party fail to implement the terms and conditions herein, the other party is entitled to terminate this Agreement.
All disputes arising from the execution of this Agreement shall be settled through friendly consultations. In case no settlement can be reached, the case in dispute shall then be submitted to the Foreign Trade Arbitration Commission of the China Council for the Promotion of International Trade for arbitration in accordance with its provisional rules of procedure. The decision made by this Commission shall be regarded as final and binding upon both parties. Arbitration fees shall be borne by the losing party ,unless otherwise awarded.
Other Terms & Conditions
Party A shall not supply the contracted commodity to any other buyer(s) in the above mentioned territory. Direct enquiries, if any, will be referred to Party B. However, should any other buyers wish to deal with Party A directly, Party A may do so. But party A shall send to Party B a copy of Sales Confirmation and give Party B...% commission on the basis of the net invoice value of the transaction(s)concluded.
Should Party B fail to pass on his orders to Party A in a period of ... months for a minimum of ..., Party A shall not bind himself to this Agreement.
For any business transacted between governments of both Parties, Party A may handle such direct dealings as authorized by Party A‘s government without binding himself to this Agreement. Party B shall not interfere in such direct dealings nor shall Party B bring forward any demand for compensation theref