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C&F & Canvassing Agent
Terms & Conditions of appointment


    1. The agency shall cover the entire state of Rajasthan. Only one C&F and canvassing agency will be awarded for the entire state.
    2. The agency shall be located in the municipal limits of Jodhpur
    3. The agency shall provide minimum office space of 500 sq.ft in the ground floor.
    4. Necessary office automation like Fax/Telephone/E-mail/Computer services shall also be provided by the agency at his expense.
    5. The agency shall also provide godown space of min:5000 Sq.ft so as to keep/store min.100 chassis at a time.
    6. Necessary insurance protection for stock against theft, fire, flood other natural calamities etc. shall be provided by agency to the satisfaction of the company and the expenses shall be born by the Company.
    7. It will be the responsibilities of the agent to provide necessary service net work for smooth servicing of KAL vehicle.
    8. The Company will provide necessary marketing advertisement support. The maximum amount of support per vehicle will be decided by the Company from time to time depending on market requirement. 50% of the advertisement charges shall be born by the C&F –cum-canvassing agent/dealer as the case may be.
    9. It shall be the responsibilities of the agency to handle statutory levies like sales tax, service tax or any other levies as applicable for and on behalf of KAL on time. KAL shall reimburse the Sales tax payments made by the agency on production of relevant documents. Any loss or damage caused to KAL due to the defunct or delay in committing the compliance of the Sales tax Rule. The agent shall compensate such loss or damages as proposed by KAL.
    10. Filing of sales tax, service tax returns shall be done by the agency for and on behalf of KAL on time.
    11. All expenses connected with handling, loading, unloading and other labour charges or any other predelivery or incidental expenses shall be borne by the agency.
    12. The vehicle (KAL Auto) will be guaranteed against all manufacturing defects for a period of 6 months or 5000 KMs whichever is earlier.
    13. The agency shall be responsible for appointment of sales and service personnel for increasing sales volume of vehicles. The terms and conditions of appointment, their service conditions, remuneration, incentives etc. shall be decided mutually between KAL and the agency. The marketing staff thus appointed shall report to the Sales Officer of the Company who is stationed at Jodhpur. The persons so appointed will be under the payroll of the agency so appointed.
    14. The agency shall provide necessary bachelor accommodation to the sale officer of the company at their cost. The agency shall provide necessary office space in the office of the agency for the Sales Officer of KAL.
    15. The agency shall be at liberty to appoint any number of dealers/sub dealers in consultation and approval of the sales officer stationed at Jodhpur. The terms and condition of appointment of new dealers shall be at the discretion of the agency. The dealers so appointed by the agency have the minimum office space, show room and godown space given as hereunder.

 

    • Office space: min.150 sq.ft area in a decent locality to protect the image of the company
    • Godown space of 500 sq.ft (min)
    • Show room space of 250 to 500 sq.ft in ground floor wi th proper arrangements
    • to protect the interest of the Company and the image of its products.
    • The dealer shall not deal with any similar or like automobile products of KAL.
  1. Cancellation/termination of any of the existing dealership shall be done only in consultation and approval of the company.
  2. The agency so appointed shall start functioning within 30 days from the date of receipt of final appointment order. The sales target for 1st 3 months is 600 Nos of Chassis and for the next 3 month it is 900 Nos of chassis.
  3. The agency shall ensure sale of minimum 300 vehicles per month in the state of Rajasthan within a period of 6 months from the date of award of this agency.
  4. No credit shall be extended by KAL to the agency and the agency shall remit the sales proceeds to the CompanyÂ’s accepted bank account or by DD to KAL Head Office.
  5. The agency shall provide necessary sales projection for the succeeding month (min.15 days ) so as to enable KAL to plan in production in advance and to ensure prompt supply.
  6. The agency shall provide DD for Rs.50 lakhs as interest free deposit to KAL to ensure the prompt compliance of the terms and conditions of agreement.
  7. If the agency fails to achieve the sales target of 300 vehicles per month within the stipulated period of six months, act against or violate any of the provision of the terms and conditions of the agreement, in case it is deemed necessary to protect commercial interest of the Company, KAL shall be at liberty to terminate dealership after giving notice to the agency so appointed. In case the Agency fails to achieve the target within the stipulated period of six months, extension shall be given for a further maximum period of six months and if the Agency fails to achieve the target within the extended period of six months also, KAL reserves the right to terminate the Agency without giving further notice to the party.
  8. The agency shall not in any case deal with any other 3 wheeler or other similar products and act against the interest of the company will lead to tantamount the agency and forfeit of the entire security deposit.
  9. Consumer cases/complaints etc. if any shall be promptly attended by the agency in consultation with the company. The Company shall be responsible only for defect arising out of manufacturing defect. Any complaint regarding deficiency of Service & Spares including body building shall be borne by the agent/dealer.
  10. In consideration of all the services rendered by the agency , KAL shall pay an all inclusive commission of 1.5% ( One and half percent) of the basic price(including service tax) per vehicle to the agency.
  11. The dealership commission shall be 3% (Three percent) of the basic price of thevehicle (including service tax).
  12. The agency shall indemnify KAL and its officers for any breach of contract or any of its terms and conditions and for any losses or damages to KAL on account of such breach of contract or any of the action from the part of the agent in the case of any transaction during the period of the contract.
  13. The vehicles will be despatched to the Agent at the expense of KAL by road transport or any other alternative means as deemed fit by KAL from the factory to the stock point. The agent should check all incoming consignments with Depot Transfer Notes (DTN) and issue necessary documents within 48 hours of receipt to KAL notifying pilferage/shortage/damages, if any, on consignments received. In case these documents are not issued in time, the value of pilferage/shortage/damages will have to be borne by the agent. Transit insurance will be arranged by KAL.
  14. Maintenance of stock book on a daily basis and should be made available for inspection by Executives/Auditors or any authorised representatives of KAL. The stock book should contain the entire transactions and movements of sales and receipts in a proper manner.
  15. The agent will at all times during the continuance of this agreement, perform and observe all directions and instructions given by the KAL concerning their work and management of the KAL stock point.
  16. The legal title of the vehicles at the stock point shall remain vested with KAL so long as they are not sold in terms of this Agreement and the agent shall not encumber the same by pledge, mortgage or hypothecation or any other manner.
  17. All brochures/literatures pertaining to the vehicles shall be supplied by the Company.
  18. KAL reserves the right to accept or reject any offer/application without assigning any reason what so ever and decision of the management is final in all respect.
  19. The disputes are subject to jurisdiction of the Courts of Thiruvananthapuram.

 

All rights reserved. 2002-10 Kerala Automobiles Limited, Kerala, India.
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