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Sole Supply Agreement

Sole Supply Agreement Template for India

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Key Requirements PROMPT example:

Sole Supply Agreement

"I need a Sole Supply Agreement for my manufacturing company in Mumbai to become the exclusive supplier of automotive components to a major car manufacturer, with a 3-year term starting January 2025 and including quality control standards for the EU market."

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Document background
The Sole Supply Agreement is a critical commercial contract used when a business wishes to establish an exclusive supply relationship with a single provider for specific products or services. This document, governed by Indian law, is particularly important in industries where consistent quality, reliable supply chains, and long-term partnerships are essential. It addresses key aspects such as exclusivity terms, minimum purchase obligations, quality requirements, pricing mechanisms, and operational procedures. The agreement must be carefully structured to comply with Indian competition laws, particularly the Competition Act, 2002, to avoid any anti-competitive implications. It's commonly used in manufacturing, distribution, and various industrial sectors where businesses need to secure their supply chain through exclusive arrangements.
Suggested Sections

1. Parties: Identification and details of the supplier and buyer entities

2. Background: Context of the agreement, relationship between parties, and purpose of the exclusive arrangement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Scope of Supply: Detailed description of products/services covered under the exclusive arrangement

5. Exclusivity Obligations: Terms of exclusive supply arrangement, territorial scope, and any exceptions

6. Supply Terms: Ordering process, delivery terms, acceptance procedures, and lead times

7. Price and Payment: Pricing mechanism, payment terms, invoicing, and price adjustment provisions

8. Quality Requirements: Quality standards, specifications, and quality control procedures

9. Minimum Purchase Commitments: Minimum order quantities, forecasting requirements, and consequences of shortfall

10. Term and Termination: Duration of agreement, renewal terms, and termination rights

11. Warranties and Indemnities: Product warranties, mutual indemnifications, and liability provisions

12. Confidentiality: Protection of confidential information and trade secrets

13. Force Majeure: Events excusing performance and related procedures

14. Governing Law and Dispute Resolution: Applicable law and dispute resolution mechanisms

Optional Sections

1. Insurance: Insurance requirements - include when supply involves high-value goods or significant risks

2. Intellectual Property Rights: IP ownership and licenses - relevant when supply involves proprietary technology or branded products

3. Competition Law Compliance: Detailed compliance provisions - necessary when arrangement might raise competition law concerns

4. Storage and Warehousing: Storage requirements - include when supplier needs to maintain local inventory

5. Training and Support: Technical support provisions - relevant for complex products or services

6. Environmental Compliance: Environmental standards - important for industries with environmental impact

7. Change Control: Process for changes to specifications - crucial for technical or evolving products

8. Export Control: Export compliance - necessary for international trade aspects

9. Business Continuity: Disaster recovery provisions - important for critical supply relationships

Suggested Schedules

1. Product Specifications: Detailed technical specifications of products/services to be supplied

2. Pricing Schedule: Detailed pricing structure, including any volume discounts or pricing mechanisms

3. Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria

4. Service Levels: Performance metrics and service level requirements

5. Forecast Template: Format for submitting forecasts and purchase orders

6. Key Personnel: List of key contacts and responsible personnel from both parties

7. Approved Manufacturing Facilities: List of approved production sites and any subcontractors

8. Compliance Requirements: Specific regulatory or industry compliance requirements

9. Territory Definition: Detailed description of geographical territory covered by exclusivity

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions








































Clauses









































Relevant Industries

Manufacturing

Automotive

Electronics

Pharmaceuticals

Chemical

Food and Beverage

Industrial Equipment

Consumer Goods

Aerospace

Healthcare

Telecommunications

Energy

Construction Materials

Textiles

Agricultural Products

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Commercial

Quality Assurance

Finance

Business Development

Vendor Management

Production

Compliance

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Operations Manager

Chief Operating Officer

Purchasing Manager

Sourcing Manager

Business Development Manager

Vendor Management Specialist

Quality Assurance Manager

Production Manager

Category Manager

Commercial Contracts Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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