Agents-Agencies and Distributorship Letters

Agents- Agencies and Distributorship Letters
The success of a modern business to a large extent depends on its agents and agencies and a right selection of these two is as vital as anything else. Agents may be appointed orally or in writing by of agreements through the later is always a better course as far as any legal complication are concerned. While making a selection of agents/agencies following facts should be considered:
1.Qualification and experience
2.Trade connection
3.Financial soundness
4.Showroom situation
5.Membership of different association.
Advertising for Stockiest
Wanted Stockiest/Agents in All States for (Country Name)
(Product Name)
Those who can offer a cash security of $(amount) may apply with full particulars of turnover showroom bank reference Etc.
ABC Group of Agencies
Address, City, State, Postal Code
Phone, Fax, Email

Applying letter for agency
Date: ___/___/_______
XYZ Enterprises
Address, City, State, Postal Code
Phone, Fax, Email,
Dear Sir,
We refer to your today’s advertisement in a newspaper regarding appointment
of stockiest/agents for your (Agency name) and are pleased to send the following information for your consideration:

  1. We can offer cash security up to MS $(amount).
  2. We can guarantee an annual sale of MS $(amount) provided of course subject to our being appointed as exclusive distributor for the state of (State name)
  3. We have an excellent showroom on (showroom Address) most popular business center. Its measurements are 200’ ` 160’. Besides, we have regular contacts with all leading dealers of the state.
  4. We shall pay all bills within 50days.
  5. We shall receive all goods freight paid and any loss arising anywhere till receipt of goods will be borne by you.
  6. We shall expect a minimum commission of 10% and an additional 3% where our sales exceed MS $(Amount).
  7. We shall work as exclusive distributors in the state of (State name)
  8. We shall be entitled to all special offers you might make from time to time and our percentage of commission will not be affected under any circumstance whatsoever.
  9. We are at liberty to sell any product similar to yours as long as the minimum annual sale of your product of MS $(Amount) is maintained.
  10. All publicity matter including price lists in our name will be supplied to us at your cost.
  11. All our orders will be executed within ten days from their dates.

As you may be aware, we are exclusive distributors for (product name) and (product name) for (City name).
(Bank Name) (Bank Address) will be glad to give you any information you may like about our financial status.
Above information, we hope will fully convince you for appointing us as your sole-distributor for the state of (State name) we shall be glad to hear from you at early date
Yours faithfully,
XYZ Enterprises

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Sample Letter for Applying an Agency

Sample letter for applying for a agency

Download in MS Word Format

Offering Terms Letter of Agency
Date: ___/___/_______
ABC Industries
Address, City, State, Postal Code
Phone, Fax, Email,
Dear Sirs,

We thank you for your letter of [Dated] and shall be Glad to appoint you as our sole-agent for (City) state on following terms and conditions.

  1. That the agency will mean sole distributorship of our (Product name) and no other product manufactured by us.
  2. That the sole-agency will be for the state of (city name) only.
  3. That you will deposit with us a security of MS $(amount) by a bank draft.
  4. That you will give us an annual sale of MS $(amount) and a commission of 4% will be paid on this amount. The amount of commission will be settled annually or in case the minimum sale of MS $(Amount) is completed earlier, the commission will become payable 4% extra commission will be allowed on your increasing the sakes to MS $(amount) and 5% if the turnover exceeds MS $(amount).
  5. That payment of bills will be made within 30 days and credit at no time will go beyond MS $(amount) including your security.
  6. That all publicity material, leaflets, price lists etc., will be supplied at our expense.
  7. That all goods will be supplied F.O.R. anywhere in (city name) state.
  8. That all goods will be properly packed in wooden cases, each (product name) to be packed separately, and no responsibility for any damage, whatsoever, will be borne by us, once the goods leave our place. This, however, excludes any mechanical at our costs.
  9. That you will not pledge or mortgage our goods to anyone at any time for any reason whatsoever.
  10. That all special offers will entitle you to your usual commission apart from additional benefits of special offers.
  11. That all orders received from you will be executed as promptly as a possible subject of course to the availability of stock.
  12. That either party is at liberty to terminate the agency by giving 120 days notice in writing.
  13. That dispute if any will be subject to (city name) courts only.

We hope you will find the above acceptable. Please return us two copies of the agreement duly signed and stamped together with a draft for MS $(amount)
Thanking You,
Yours faithfully,
ABC Industries
Encl.: Agreements in Triplicate.

Accepting Terms Letter of Agency
Date: ___/___/_______
XYZ Enterprises
Address, City, State, Postal Code
Phone, Fax, Email,
Dear Sirs,

          With reference to your letter dated [date], we have pleasure in accepting your terms and conditions of sole-agency. We have today advised our bankers at (city name) to transfer a sum of MS $ (Amount) to your account please send us your official receipt for the security deposit.

We are pleased to place our initial order for (product name and Quantity) these may please be dispatched by XYZ Transport Company.

In the meanwhile please airmail some publicity material so that we may send the same to our customers.

Yours faithfully,

XYZ Enterprises

Note: It is not necessary that the distributor at (city name) should accept the terms and conditions as mentioned in the above letter. On the other hand, if he finds that any condition is not acceptable to him or some other condition is acceptable to him with modification, he should write to the manufacturer accordingly.

Terminating Letter the Sole-Agency

Date: ___/___/_______
ABC Industries
Address, City, State, Postal Code
Phone, Fax, Email,
Regd.
XYZ Enterprises
Address, City, State, Postal Code
Phone, Fax, Email,
Dear Sirs,

We regret to say that despite our repeated requests and suggestions you have not cared to improve our sales in your state. We are now left with no choice except to terminate your agency and this may please be treated as 30 days notice as per clause 12 of our agency agreement.

Please clear all pending account at an early date so that we may return your security.
Yours faithfully,
ABC Industries

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Sample Terminating Letter the Sole Agency

Terminating Letter the Sole Agency

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