Petrol Station Agreement
This agreement is made on the 15th day of December 2000 between AB Co. Ltd., a company registered under the Companies Act 1956 and carrying on business at ……………… (hereinafter called the COMPANY) of the one part and ML carrying on business under the name and style of AUTO FIL at ………………………………………………… (hereinafter called the AUTO FIL) of the other part.
WHEREAS ML owns a plot of land being premises No. ……………………… and is desirous of setting up of a Petrol Station there and approached the COMPANY for dealership.
And WHEREAS the COMPANY has supplied at the cost of AUTO FIL equipment for the installation of a petrol pump at ……………………………… and the installation is almost complete.
And WHEREAS the AUTO FIL has assured the COMPANY that it will store the petrol and petroleum products of the COMPANY for the purpose of sale.
NOW THIS AGREEMENT WITNESSES and the parties hereby agree as follows:
1. The COMPANY shall supply as much petrol as it conveniently can do to AUTO FIL for storage in the tank installed underneath the petrol pump station and petroleum products in its rooms on the said premises …………………… …………………… being the AUTO FIL.
2. AUTO FIL shall maintain the equipment and the construction of the said petrol pump in good state of repair so as to keep it free from leakage, theft, fire and other like hazards.
3. AUTO FIL shall not store or handle petrol supplied by another person, firm or COMPANY or State.
4. AUTO FIL shall sell the petrol and petroleum products at the rate fixed by the COMPANY.
5. AUTO FIL shall not encumber or dispose of the installation or the equipment in any manner whatsoever or do or suffer anything to be done whereby the said petrol pump or any part thereof may be seized or possessed by any other person or authority.
6. AUTO FIL shall submit weekly accounts of the receipt and disposal of the petrol and petroleum products supplied to it and pay the price thereof forthwith along with the said accounts. The COMPANY shall be entitled to check, inspect, measure and investigate into the conditions, state, quantity of the petrol, petroleum products and the equipment as well as the installation and to verify any fact mentioned in the said accounts or otherwise at its discretion.
7. This agreement shall continue for a period of 5 years from the date hereof unless sooner terminated by service of 30 days notice on either side.
8. If AUTO FIL should commit any breach of the agreement the COMPANY shall be entitled to terminate this agreement by 7 days notice. On the expiry of the period so fixed in the notice the agreement so far as the rights of AUTO FIL are concerned shall be deemed to have come to an end but it shall be bound by the obligations undertaken hereunder.
9. AUTO FIL shall be entitled to receive from the COMPANY commission of 5% on the sale of petrol and petroleum products. AUTO FIL will be liable for and shall furnish a Bank Guarantee for payment of the price of petrol and petroleum products supplied to it. No commission shall be payable unless the price of petrol and petroleum products has actually been paid to the COMPANY.
10. AUTO FIL shall keep a sum of Rs. 5 lakhs interest-free deposit with the COMPANY as security for the due performance of the conditions of the agreement in addition to the Bank Guarantee. This is without prejudice to the terms and conditions mentioned above in respect of termination of this agreement.
11. On termination of this agreement after adjustments of the COMPANY’s claims against AUTO FIL the security deposit would be returned.
In witness whereof the parties herein have executed these presents on the day, month and year first above-written.
Signed, sealed and delivered by Mr…………… pursuant to Board Resolution dated 10th December 2000 of AB Co. Ltd. in the presence of:
Signed, sealed and delivered by
Mr. ML proprietor of AUTO FIL in the presence of: