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Canteen Agreement format between Company and contractor to provide food to staff.

Format of Canteen Agreement between contractor and company.

Many Companies provide free or with concession, food and other items to staff. In some cases the company provides part of the cost of food items and the employees will pay a discounted cost. This will help to ensure food to all employees, their health and welfare.

Sample Format of Loan agreement between Company and contractor to run a canteen is given below.



This Agreement is executed at Delhi on this _______ day of _________ 20__


_________________ Pvt Ltd having its office at _____________ _____________ _____________through its Authorized signatory, _____________ (hereinafter called the 'First Party') of the ONE PART.


______________, a Partnership firm, having its Office at _____________ _____________, through its Partner _____________ _____________ (hereinafter called the 'Second Party') of the OTHER PART.

WHEREAS the First Party is having its office at _____________ _____________ _____________ (The Outlet Premises, in short);

AND WHEREAS to serve food for its employees, clients other visitors and guests, the First Party has a specified area of _______________sq feet in their Premises out of which will be occupied by the Second Party.

AND WHEREAS the Second Party is engaged in the business offering such services through its _____________, a 'Cafeteria' concept;

AND WHEREAS on the said representations of the Second Party, the First Party has accepted the offer of the Second Party and agreed to permit the Second Party to supply and food on the terms and conditions mutually discussed, agreed upon and recorded hereunder:

1. This Agreement shall remain effective for one year for the present and shall terminate automatically after one year from the date of its execution. The term of this agreement during its tenure may be revised from time to time according to the necessity that may crop up during progress of the contract by mutual consent. If any of the parties wants to terminate the agreement during the tenure, it must give a notice of at least three months. This agreement may be renewed after one year, if required with suitable modifications on mutual discussions and consent.

2. If, the Second Party fails to meet the expectation of First Party or breaches the term of this Agreement, First Party will issue a written notification to rectify any such breaches of this Agreement. The First party shall rectify and improve within fifteen (15)days of The First Party written notification of such breaches, The First Party shall be entitled to terminate the service with a 30 days notice if the company fails to comply to this.

3. That the First Party awards the contract to set up facilities to provide food in the outlet of the first party's premises. The Second Party accepts the contract to supply food, beverages and snacks to the Students, employees, clients, guests and visitors of the First Party.

4. That to enable the Second Party to offer the services, in terms of this Agreement, the First Party agrees to provide the following:

a. An appropriate space as shown & agreed inside the premises to install the equipment required by the Second Party to provide the said services;

b. Electricity connection with power back-up;

c. Filtered water supply;

4. That to provide the services, as envisaged under this Agreement, the Second Party shall be free to install all the Kitchen operating supplies including crockery, this shall be maintained by the Second Party.

In addition to the aforesaid, if the Second Party needs to bring in any additional equipment into the Premises and the items for sale the prices/rates charged, the same shall be with the prior written consent of the First Party.

Except for using the said equipment listed above, the Second Party undertakes not to take up any cooking or preparation of food articles to be served in the Cafeteria. The First Party will not have rights on any machinery, assets and any stocks for the Second Party.

5. The rate fixed by canteen committee shall be inclusive of all taxes and Second Party shall not charge any amount over and above the rates mentioned in the rate list which is as follows:

Name of Items                 Amount ( Rs)
Veg Breakfast                        ___

Veg Lunch                             ___

Other Items                         ____

6. The Second Party shall keep the Cafeteria open from 9.00 a.m. to 7.00 p.m (6 days a week). If the First Party so desires and considering commercial viability, the Second Party agrees to operate the said Kiosk for longer duration, as may be agreed between the Parties.

7. The Menu shall be fixed by the Second Party by considering the feed back by Company Canteen Committee which shall comprise the Employees and the members from Second Party.

8. The Second Party shall provide uniform to its staff and shall ensure that the staff and the premises are clean.

9. The Second Party will not serve Non Vegetarian dishes and alcoholic beverages.

10. The Second Party shall give employment to their employees after verifying their antecedents and subject to submitting medical certificates.

11. The Second party shall issue identity cards bearing photograph to its all its staff which will be endorsed by first party for entry into premises of first party. The entry of the staff of Second Party shall be permitted only during day time and shall not be allowed to stay in cafeteria. In case they have to stay late, they shall take special permission from Company in writing. All staff of the second party shall be frisked and searched during entry and exit at the Gate.


12. That the Second Party shall ensure that in the event of any complaint about the quality of the food or snacks/beverages to be supplied or the hygienic conditions of the Cafeteria, the Second Party shall immediately withdraw the stale or sub-standard quality food and supply good quality items and the Second Party will be solely responsible and legally bound for it. The First Party shall have the right to inspect the quality of the items to be served and maintenance standards of the Kiosk/Cafeteria and offer suggestions, to the Second Party from time to time without requiring any prior permission.

13. First party represents and warrants that it will not allow any one in its premises who is competing with the Second part or doing similar type of service.

14. That this Agreement shall be deemed to have come into effect from _________day the Second Party started services from the said Cafeteria shall remain in force for a period of 12 months there from that is till __________.

15. That in case the Second Party is desirous of seeking extension of time to use the said premises the Second Party shall inform its intention in writing to the First Party at least 1 month prior to the expiry of the present Agreement. The First Party may at its sole discretion grant or refuse any such extension. If the First Party desires to extend the term of this Agreement, such extension shall be on such terms and conditions as the First Party may deem fit.

16. Either Party may terminate this agreement at any point of time by giving 30 days prior notice in writing to the other party.

17. Within 72 hours of termination of this Agreement the Second Party shall forthwith remove its Cafeteria, equipment and other material. The First Party shall have undisputed right to stop the entry of the Second Party or its employees or any one else claiming through the Second Party after the expiry of 72 hours time after termination of the Agreement. In case the Second Party fails to remove its equipment, the First Party shall, at its discretion and at the risk and cost of the Second Party, remove the same from the prescribed outlet without any further notice.

18. The Second Party hereby unconditionally undertakes to indemnify and keep indemnified the First Party, its directors, officers, agents, employees and authorized representatives from and against any taxes of whatever nature and all loss, cost, damages, expense and liability including attorneys fees and other litigation expenses which may be incurred or suffered by the other and which may arise out of or result from:

a) Any breach of any of its obligations, covenants or agreement contained in this Agreement; and

b) Any and all actions, suits, proceedings, claims, judgments, costs, expenses, including incurred in enforcing this indemnity.

c) That in the event of any doubt, dispute or difference arising between the parties in respect of or touching these presents or for determination of their rights, duties, obligations or liabilities during the continuance of this Agreement or thereafter, then the same shall be referred to the sole arbitrator to be appointed by the first party. The decision of the Arbitrator will be final and binding on both the parties. The provisions of Arbitration & Conciliation Act, 1996 or any statutory modification and re-enactment thereof will apply to such arbitration provided; however, in all matters the venue of arbitration proceedings will be ___ and will have the jurisdiction at ______ only.

d) The second Party will submit an Indemnity Bond before starting the kiosk in the premises of First Party.


(a) The second party shall ensure solely that it complies with all the applicable laws pertaining to the present agreement, keep all necessary records for statutory compliance and the first party shall not be held responsible for the same.

(b) The second party shall be solely responsible for compliance for the provisions of the Prevention of food Adulteration Act.

(c) The second party shall appoint a nominee as per the provisions of the Prevention of Food Adulteration Act and inform the concerned department of the Government of NCT of Delhi of the said fact before commencing the business in terms if the present agreement. A copy of the same shall also be provided to the party on the first part.

IN WITNESS WHEREOF the parties hereto have signed this Agreement on the day, month and year first herein above written in the presence of:









Designation ______________________________

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