The Direct Selling Contract is written contract between direct sellers and direct selling entity. All Direct Selling Entities shall execute a contract agreement in a manner consistent with Section 10 of Indian Contract Act, 1872, whether directly or indirectly with direct sellers before enrollment.

Additionally, the rights and obligations of parties to this agreement under these guidelines or any other law in force, parties shall have rights and obligations that are coextensive with rights and obligations of parties under the Indian Contract Act, 1872.

The agreement must be in writing describing the material terms of participation.

The Direct Selling Agreement:

Allows or provides the direct seller a reasonable cooling-off period in which to cancel participation and receive a refund for goods or services purchased.

The direct selling agreement allow for the termination of contract, with reasonable notice, in such instances and on such terms where a direct seller is found to have made no sales of goods or services for a period of up to two years since the contract was entered into, or since the date of the last sale made by the direct seller.

The direct selling agreement allow or provide for a buy-back or repurchase policy for currently marketable goods or services sold to the direct seller at the said direct seller’s request at reasonable terms. But through direct selling agreement, the direct sellers not compelled or induced to purchase goods or services in an amount that exceeds an amount that can be expected to be sold to consumers within a reasonable period of time.

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February 2021