Professional Documents
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Of a commercial proxy
Prelude:
And based on the desire of the second party to function as the commercial
proxy on behalf of the first party to negotiate and spur others to conclude
deals and executing them in return of fees or commission, the two parties
have agreed to the following:
Item (1): The previous prelude is considered part and parcel of this
contract.
Item (2): The two parties agreed that the second party, in his capacity as a
commercial proxy, shall urge and negotiate to conclude and execute deals
regarding products or services subject of this contract in the name of Mr.
Rafat Faisal Hussain Bargah and for the benefit of Mr. Said Hasan
Machdan, SE.
Item (3): The subject of this proxy is products or services provided by the
first party and listed as follows:
- Cosmetics Products.
Item (4): The scope of the validity of this contract is determined by:
Item (5): The validity of this contract is 5 (Five) years, starting on April
16th, 2018 and ending on: April 17th 2019 renewable to similar periods
unless either one of the two parties notify the other party in writing by
virtue of a registered letter of his desire not to renew the agreement, at
least three months, before the expiration date of the original period or the
renewed period.
Item (6): The two parties execute the contract according to its rules and in
conformity with the rules of commercial traditions and in a manner that
conforms to the requirements of good intent. This obligation includes
what is considered of the contract requirements according to commercial
transaction.
Item (7): The first party guarantees the good quality of all materials and
products subject of the contract, also he is obliged to provide the
maintenance and spare parts at reasonable prices when it is requested by
the second party according to the quantities and times established by the
second party during the proxy’s period and for a subsequent one year
starting from the expiration date of the proxy’s period or to the date of
appointing another distributor which comes first.
Item (8): The first party guarantees the good quality of products and
materials subject of contract and its conformity with standard
specifications approved in the Kingdom, the agent is not responsible for
receiving or distributing any quantity coming from the first party in
violation of required standard specifications, if it was proofed to relevant
parties the existence of violations to specification, the goods shall be
returned to the first party at his own expenses in addition to the second
party’s right to claim suitable compensation for the damages befall him.
Item (10): The second party deserves from the first party commission in
the amount of 10 (ten) percent of the value of items sold in the contract’s
area.
. a) To return back the money spent by the second party in the course of
executing the contract according to agreement.
Item (12): The commercial agent has the right to claim compensation for
damages befallen him according to the contract or commercial traditions
in the following cases:
. b) If the first party refuses to renew the period of the proxy after the
expiration of the original period. Despite of any
incompatible
agreement. Should the agent proof that his activity
has lead to an apparent success in promoting first party’s
production or increasing the number of his clients and that the non-
renewal leads to the agent loss of profits or commission resulting
from that success unless the first party proofs that that non-
renewal of contract is related to strong causes justifying that.
. c) Should the first party violate any of the commitments stated in the
commercial proxies system or in this contract.
Item (13): The first party has the right to claim compensation for the
damage befallen him according to contract of commercial traditions.
Item (14): Disputes resulting from the execution of this contract and was
not possible to solve it amicably between the two parties are solved
through arbitration before an agreed upon local or outer arbitration body.
The disputes will be solved through arbitration in Jeddah court, Saudi
Arabia.
Item (15): This contract is subject to the rules of systems valid in the
Kingdom of Saudi Arabia (1).
Item (16): This contract has been made of three copies, each party kept
one copy for observation during his work. The second party shall submit
the third copy to the Ministry of Commerce to complete registration
procedure in the commercial proxies register.