Agreement Sample for Direct Selling Agents, as per MLM Guidelines

sample agreement for direct selling agents

As per the Clause 4 of LATEST MLM GUIDELINES given by MINISTRY OF CONSUMERS AFFAIRS on 9th September, 2016, an legal agreement between Direct Selling Company and Agent is required.

( Click HERE to read Guidelines on the website of Ministry of Consumer Affairs)

According to the guidelines, Every Direct Selling entity shall execute a contract agreement, whether directly or indirectly, with Direct Sellers before enrollment, which shall be provided in a manner consistent with Section 10 of the Indian Contract Act, 1872 and shall be provided in written & describing the material terms of participation.

Now that LATEST MLM GUIDELINES states that there should be written agreement between company and agent, it is compulsory for every Direct Selling Company to start doing it in order to operate legally and to comply with latest MLM Guidelines.

Here we are to clear your confusion about that and to help you, by providing you SAMPLE OF AGREEMENT BETWEEN AGENT AND COMPANY, which is officially published on website of IndiaFilings.

  • To See & Download PDF file of AGREEMENT SAMPLE FOR DIRECT SELLING AGENTS from website of IndiaFilings, click HERE.
  • To Download WORD file of AGREEMENT SAMPLE FOR DIRECT SELLING AGENTS from website of IndiaFilings, click HERE.

As they mentioned on their website, a Direct Selling Agent Agreement is a legal agreement entered into between a Business and an Agent authorized to sell/distribute the product of a business on its behalf. The Direct Selling Agent Agreement puts in writing the terms of agreement between the business and the agent and details areas such as limitation of liability, territory, intellectual property usage, commission, return policy, etc.

Usage of this agreement is also explained on their website. According to it, this Direct Selling Agent Agreement can be used by any business wishing to appoint Direct Selling Agents on it behalf. It is frequently used by many of the leading banks in this country, who outsource this sales operation either to individuals or to other institutions specialized in this task.

The Direct Selling Agent agreement must be printed on a Non-Judicial Stamp Paper with a value of Rs.20/- or more. The Direct Selling Agreement is made in two copies and the agent and the company each retain one original copy of the agreement for their records.

  • DISCLAIMER : The document we are providing here is just a sample. You should seek some legal advice before proceeding further.

If you have any confusion, question or query regarding to this document or any legalities related to MLM , feel free to contact us for support.

And if you are in search of PRODUCTS or SERVICES which are legal according to LATEST MLM Guidelines, and which can make operating your business legally easy, you can contact us for the same too.

To contact us, click HERE.

NOTE : This post has been published first on MLM LEGAL INDIA , a website which is spreading legal awareness in Indian MLM Industry and helping MLM Businesses to operate legally.


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