Common use of Obligations of the Principal Clause in Contracts

Obligations of the Principal. 3.1 In its relation with the Agent, the Principal must act dutifully and in good faith. 3.2 The Principal shall in particular remunerate the Agent according to the commission and terms of payment provided for in this contract. 3.3 The Principal shall inform the Agent before it starts to perform the obligations mentioned in paragraph 2.2 of the minimum overall orders that should be collected in order for the Principal to be able to supply the product(s) (or service(s)). 3.4 The Principal shall in addition inform the Agent without delay of its acceptance, refusal or non-execution of any offers/orders transmitted by the Agent. 3.5 The Principal shall not reject the offers/orders transmitted by the Agent unless: 3.5.1 There are serious doubts, supported by any written evidence, on the solvency of the customer. 3.5.2 The offer does not meet the Principal’s expectations in terms of image and standards. 3.5.3 The overall orders collected by the Agent are below the minimum overall orders referred to in paragraph 3.3. 3.6 The Principal’s unjustified refusals of offers/orders shall be considered as a breach of the contract by the Principal. 3.7 The Principal shall immediately inform the Agent of any change in its range of product(s) (or service(s)) its prices, conditions of sale or terms of payment as well as of any change of the technical specifications or capacity of supply of the product(s) (or service(s)). Should the Principal expect that its capacity of supply will be significantly lower than the Agent’s normal expectancy, it shall inform the Agent without delay. 3.8 The Principal shall provide the Agent, free of charge, with all information and documentation needed for the performance of the present contract, including, but not limited to, the terms and conditions of sale, price lists, technical documents. 3.9 The Principal shall furthermore keep the Agent informed of any relevant communication with or for the attention of the customers in the territory.