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Material Supply Agreement

Material Supply Agreement Template for India

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Key Requirements PROMPT example:

Material Supply Agreement

"I need a Material Supply Agreement for my auto parts manufacturing company in Pune, India, to source steel components from a supplier, with strict quality control requirements and quarterly delivery schedules starting from January 2025."

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Document background
The Material Supply Agreement is a critical commercial document used to establish and govern the ongoing supply relationship between material suppliers and purchasers in India. This agreement is essential when businesses require regular, scheduled supply of materials under specified quality standards and pricing terms. It incorporates key elements of Indian contract law, including provisions from the Indian Contract Act 1872 and Sale of Goods Act 1930, while addressing modern commercial requirements such as GST compliance and electronic commerce. The agreement is particularly relevant in India's rapidly growing industrial sector, where reliable material supply chains are crucial for business operations. It includes comprehensive provisions for quality control, delivery schedules, price adjustments, and dispute resolution, tailored to comply with Indian legal requirements and business practices.
Suggested Sections

1. Parties: Identification and details of the supplier and purchaser

2. Background: Context of the agreement and relationship between the parties

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

4. Supply Obligations: Core obligations of the supplier regarding material supply

5. Quality Requirements: Quality standards and specifications of materials

6. Order and Delivery: Process for placing orders and delivery requirements

7. Price and Payment: Pricing structure, payment terms, and invoicing process

8. Term and Termination: Duration of agreement and termination provisions

9. Title and Risk: Transfer of ownership and risk in materials

10. Warranties: Warranties regarding material quality and fitness for purpose

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

12. Confidentiality: Protection of confidential information

13. Force Majeure: Provisions for unforeseen circumstances affecting performance

14. Dispute Resolution: Process for resolving disputes between parties

15. Governing Law: Applicable law and jurisdiction

Optional Sections

1. Minimum Purchase Commitment: Used when buyer commits to minimum purchase quantities

2. Exclusivity: Include when there are exclusive supply arrangements

3. Storage and Handling: Required for materials needing special storage conditions

4. Insurance: Detailed insurance requirements for high-value or hazardous materials

5. Environmental Compliance: Include for materials with environmental implications

6. Intellectual Property: Needed when proprietary materials or processes are involved

7. Security Requirements: For sensitive or controlled materials

8. Change Control: Process for changing specifications or terms during the agreement

9. Export/Import Compliance: Required for international supply arrangements

Suggested Schedules

1. Schedule 1 - Material Specifications: Detailed technical specifications of materials

2. Schedule 2 - Pricing Schedule: Detailed pricing structure and any volume-based discounts

3. Schedule 3 - Delivery Requirements: Specific delivery locations, timeframes, and procedures

4. Schedule 4 - Quality Control Procedures: Detailed quality testing and acceptance procedures

5. Schedule 5 - Service Levels: Performance metrics and service level requirements

6. Appendix A - Order Form Template: Standard form for placing orders

7. Appendix B - Safety Data Sheets: Safety information for hazardous materials

8. Appendix C - Compliance Certificates: Required regulatory or quality certifications

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

Construction

Chemicals

Pharmaceuticals

Electronics

Textiles

Mining

Steel and Metals

Food and Beverage

Industrial Equipment

Consumer Goods

Energy and Utilities

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Finance

Quality Control

Logistics

Compliance

Risk Management

Production

Commercial

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Operations Manager

Quality Control Manager

Logistics Manager

Chief Financial Officer

Risk Manager

Purchasing Officer

Materials Manager

Vendor Relations Manager

Compliance Officer

Production 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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