Subject: Appointment as principal agent
Concerning the quotations received for the distribution of cotton fabric manufactured by our company, we are pleased to inform you that you have been selected as the principal-agent of the entire area.
The appointment is with effect from the 2nd of May with the initial period of 3 years. After that, the company shall assess the performance and increase the period further. The next appointment shall then be subject to the approval of the Board of Directors.
You shall be given the right to choose your sub-agents and commission agents. They shall not be directly dealing with the company. In the case of commission agents, you have the right to fix commission area-wise, be sure to inform the company.
You, as an exclusive agent, will have all the rights and authority to sell the products either in cash or in credit, whichever you may deem fit. In the case of credit purchases, the risk shall be yours, and you will have the sole responsibility of collecting the money from creditors.
The company is endorsing the agreement with this appointment letter. You are requested to sign on copy and send the other back to us.
Thank you, and we look forward to being in business with you.
Sr. Manager – Tenders