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Master Pricing Agreement for India

Master Pricing Agreement Template for India

A Master Pricing Agreement is a comprehensive commercial contract governed by Indian law that establishes the fundamental pricing structure and terms for ongoing business relationships. It sets out the framework for how prices will be determined, adjusted, and applied across multiple transactions, typically including mechanisms for price reviews, volume-based discounts, and payment terms. The agreement complies with Indian contract law principles and incorporates relevant provisions of the Competition Act, 2002, particularly regarding pricing practices and anti-competitive behavior. It serves as a long-term framework agreement that streamlines future transactions by pre-establishing key commercial terms.

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What is a Master Pricing Agreement?

The Master Pricing Agreement (MPA) is designed for situations where parties anticipate multiple transactions over time and wish to establish a standardized pricing framework upfront. It's particularly useful in the Indian business context where companies engage in regular, recurring business relationships and need a structured approach to pricing. The agreement typically includes detailed provisions for price calculations, adjustments, volume discounts, and payment terms, all compliant with Indian commercial laws and regulations. It streamlines commercial operations by eliminating the need to negotiate pricing terms for each individual transaction, while providing flexibility through price adjustment mechanisms and review periods. This type of agreement is especially valuable in business relationships involving regular supply of goods or services, or in distributor-manufacturer relationships where pricing consistency and transparency are crucial.

What sections should be included in a Master Pricing Agreement?

1. Parties: Identification of the contracting parties with full legal names and registered addresses

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

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

4. Scope of Agreement: Overall framework of the pricing arrangement and its application

5. Pricing Structure: Core pricing principles, methodology, and mechanisms for price determination

6. Price Adjustments: Procedures and conditions for price modifications, including periodic reviews and adjustment formulas

7. Payment Terms: Payment conditions, invoicing requirements, and payment methods

8. Term and Termination: Duration of the agreement and circumstances for termination

9. Confidentiality: Protection of confidential information and pricing data

10. Representations and Warranties: Standard warranties regarding authority to contract and compliance with laws

11. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction details

12. Dispute Resolution: Process for resolving disputes, including escalation procedures

What sections are optional to include in a Master Pricing Agreement?

1. Volume Commitments: Include when there are minimum purchase obligations or volume-based pricing tiers

2. Currency and Exchange Rates: Required for international transactions or when dealing with multiple currencies

3. Most Favored Customer: Include when offering best pricing guarantees to the customer

4. Cost Pass-Through Provisions: Include when certain costs can be passed through to the customer

5. Performance Metrics: Include when pricing is linked to performance or service levels

6. Audit Rights: Include when parties need rights to verify pricing calculations or volume commitments

7. Force Majeure: Include when specific events should excuse pricing or volume obligations

8. Insurance Requirements: Include when specific insurance coverage is required due to nature of goods/services

9. Compliance with Laws: Include detailed compliance obligations when dealing with regulated industries

What schedules should be included in a Master Pricing Agreement?

1. Schedule A - Price List: Detailed pricing for all products/services covered under the agreement

2. Schedule B - Price Adjustment Mechanism: Detailed formulas and procedures for price adjustments

3. Schedule C - Volume Discount Structure: Tiered pricing based on volume commitments if applicable

4. Schedule D - Service/Product Specifications: Detailed description of services/products covered under the pricing agreement

5. Schedule E - Key Performance Indicators: Metrics and measurements for performance-based pricing if applicable

6. Schedule F - Authorized Affiliates: List of affiliated entities authorized to use the pricing agreement

7. Appendix 1 - Form of Purchase Order: Standard template for purchase orders under the agreement

8. Appendix 2 - Escalation Matrix: Contact details and escalation procedures for pricing disputes

Authors

Alex Denne

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

Jurisdiction

India

Publisher

Ƶ

Document Type

Master Agreement

Cost

Free to use
Relevant legal definitions


































Clauses



































Relevant Industries

Manufacturing

Technology

Retail

Wholesale Distribution

Telecommunications

Professional Services

Healthcare

Automotive

Consumer Goods

Industrial Products

Energy

Logistics

Information Technology Services

Construction

Relevant Teams

Legal

Finance

Procurement

Sales

Commercial Operations

Business Development

Supply Chain

Contract Administration

Pricing

Account Management

Relevant Roles

Commercial Director

Procurement Manager

Sales Director

Contract Manager

Chief Financial Officer

Pricing Analyst

Legal Counsel

Business Development Manager

Supply Chain Manager

Finance Manager

Commercial Operations Manager

Account Executive

Vendor Manager

Category Manager

Strategic Sourcing 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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