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Rachna (Associate)     08 April 2010

Agreement / Contract

I have a query, pls help me out. We have 3 parties A, B & C. "A" is manufacturer of a product, "B" is the middlemen / Agent & "C" is the consumer / purchasor who purchase the product of A through B. The product was supplied by B and the invoice was send by A to C. Now C is not making the payment. We want to create a liability of B towards A for the payment i.e on C's default B is liable to pay. So what agreement / contract should be made which comprises of liability of agent as guarantor?



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 5 Replies

Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR)     08 April 2010

An agreement with agent should be made in such a way that he will purchase the said product and payment terms to be specified as mutually agreed. In short direct agreement with the agent or middlemen should be made for the said contract example "A will make contract with B for selling of products" now B may give it to any one C , D or anyone A is not concerned and the agreement should be made as A is seller and B is purchaser.

Kuljit Pal Singh (Legal Professional)     08 April 2010

Here, i think the relationship of Principle & Agent to be changed to Buyer or Seller, this will make lots of difference, but making B as a Guarantor of C is bit tricky... !!!

Rachna (Associate)     08 April 2010

We are from company's side so we need to recover the money and the product is sold by B so it is his responsibility to make good the loss caused to the company, i feel he also has some liability towards the payment otherwise in future also the same will keep on repeating he will be selling the goods without any liability and the ultimate sufferer would be the company.

jyotirmaya behera (advocate)     08 April 2010

hi. agent is the appointed my company. so if agent ll do company ll be responsible.

bhagwat patil (Property due diligence 9422773303)     10 April 2010

if hte invioces r made in name of c and it is clearly mentioned the collection liability is of b b is liable. if b is merely saleing agent he is not legally liable for the payment unless itis mentioned in the contract of appointment as a agent. 


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