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Supply Contract Agreement Template for India

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Key Requirements PROMPT example:

Supply Contract Agreement

"I need a Supply Contract Agreement under Indian law for my manufacturing company to supply automotive parts to a German buyer, including quality control standards and export compliance requirements, with the agreement to commence from March 1, 2025."

Document background
The Supply Contract Agreement is a fundamental commercial document used to formalize the relationship between suppliers and purchasers in India. It is essential for businesses engaged in regular supply arrangements, whether for raw materials, finished goods, or components. The agreement incorporates key elements required under Indian contract law, including the Indian Contract Act, 1872, and addresses specific requirements under the Sale of Goods Act, 1930. It is particularly valuable for ongoing supply relationships where parties need clarity on delivery terms, quality standards, pricing mechanisms, and risk allocation. The document typically includes provisions for GST compliance, quality control measures, and dispute resolution mechanisms suitable for the Indian legal environment. This type of agreement is crucial for protecting both parties' interests and ensuring smooth commercial operations in supply chain relationships.
Suggested Sections

1. Parties: Identification and details of the supplier and purchaser, including registered addresses and company registration numbers

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Supply Obligations: Core obligations of the supplier regarding the provision of goods

5. Order and Delivery: Process for placing orders, delivery terms, and timelines

6. Price and Payment: Pricing structure, payment terms, invoicing, and payment methods

7. Quality and Inspection: Quality standards, inspection rights, and acceptance/rejection procedures

8. Title and Risk: Transfer of ownership and risk in the goods

9. Warranties and Representations: Standard warranties regarding goods quality and compliance with specifications

10. Term and Termination: Duration of the agreement and grounds for termination

11. Liability and Indemnity: Limitation of liability and indemnification obligations

12. Confidentiality: Protection of confidential information exchanged during the business relationship

13. Force Majeure: Provisions for handling events beyond parties' reasonable control

14. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Minimum Purchase Commitment: Used when the purchaser commits to minimum order quantities or values

2. Exclusivity: Include when either party is granted exclusive rights in certain territories or product categories

3. Insurance: Detailed insurance requirements, necessary for high-value or high-risk supplies

4. Intellectual Property: Required when the supply involves branded products or licensed intellectual property

5. Export Control: Include for international supply arrangements or controlled goods

6. Change Control: Necessary for supplies requiring formal process for changes to specifications

7. Service Levels: Include when specific performance metrics need to be maintained

8. Environmental Compliance: Required for goods subject to environmental regulations or sustainability requirements

Suggested Schedules

1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods to be supplied

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

3. Schedule 3 - Delivery Locations: List of approved delivery locations and any location-specific requirements

4. Schedule 4 - Quality Standards: Detailed quality requirements and testing procedures

5. Schedule 5 - Service Levels: Specific performance metrics and measurement criteria

6. Schedule 6 - Form of Purchase Order: Standard form for placing orders under the agreement

7. Appendix A - Contact Details: Key contact persons and their details for both parties

8. Appendix B - Compliance Requirements: Specific regulatory or industry compliance requirements

Authors

Alex Denne

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

Relevant legal definitions












































Clauses














































Relevant Industries

Manufacturing

Retail

Wholesale Distribution

Automotive

Electronics

Pharmaceuticals

Fast-Moving Consumer Goods (FMCG)

Industrial Equipment

Textiles

Food and Beverage

Chemical Industry

Construction Materials

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Finance

Quality Control

Compliance

Commercial

Sales

Logistics

Risk Management

Business Development

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Operations Manager

Quality Control Manager

Chief Financial Officer

Purchasing Officer

Vendor Relations Manager

Logistics Manager

Compliance Officer

Business Development Manager

Sales Director

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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