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Purchase Price Agreement Template for India

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Key Requirements PROMPT example:

Purchase Price Agreement

"I need a Purchase Price Agreement for acquiring manufacturing equipment worth INR 50 million from a supplier in Gujarat, with payment to be made in three installments and final delivery by March 2025."

Document background
The Purchase Price Agreement is a crucial legal document used in Indian business transactions to formalize significant purchase arrangements between parties. It is particularly relevant when the transaction involves substantial value, complex payment structures, or requires specific conditions to be met before completion. The agreement must comply with Indian legal requirements, including the Indian Contract Act, 1872, Sale of Goods Act, 1930, and relevant tax laws. It typically includes detailed provisions on purchase price calculation, payment mechanisms, conditions precedent, representations and warranties, and closing requirements. This document is essential for protecting both parties' interests, ensuring clear understanding of obligations, and providing mechanisms for dispute resolution under Indian jurisdiction.
Suggested Sections

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

2. Background/Recitals: Context of the transaction and brief description of what each party brings to the agreement

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules for interpreting the agreement

4. Purchase Price and Payment Terms: Detailed breakdown of the purchase price, payment schedule, and payment mechanisms

5. Conditions Precedent: Conditions that must be satisfied before the agreement becomes effective

6. Closing Mechanics: Detailed process for completion of the transaction, including timing and deliverables

7. Representations and Warranties: Statements of fact and assurances from both parties about their capacity, authority, and the subject matter of the purchase

8. Covenants: Ongoing obligations of the parties before and after closing

9. Indemnification: Terms governing how parties will compensate each other for losses arising from breaches

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for dispute resolution

12. Notices: Process and contact details for formal communications between parties

13. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Earnout Provisions: Include when part of the purchase price is contingent on future performance

2. Regulatory Compliance: Include when the transaction requires specific regulatory approvals or compliance measures

3. Tax Matters: Include detailed tax provisions when there are complex tax implications

4. Employment Matters: Include when the purchase affects employees or requires specific employment-related arrangements

5. Intellectual Property Rights: Include when IP assets are a significant part of the purchase

6. Environmental Matters: Include when environmental liabilities or compliance is relevant to the purchase

7. Post-Closing Covenants: Include when specific obligations need to be fulfilled after closing

8. Escrow Arrangements: Include when part of the purchase price needs to be held in escrow

Suggested Schedules

1. Schedule 1 - Purchase Price Calculation: Detailed breakdown of purchase price components and calculation methodology

2. Schedule 2 - Conditions Precedent: Comprehensive list of all conditions that must be satisfied before closing

3. Schedule 3 - Closing Deliverables: List of all documents and items to be delivered at closing

4. Schedule 4 - Representations and Warranties: Detailed representations and warranties of both parties

5. Schedule 5 - Disclosed Matters: List of disclosed exceptions to representations and warranties

6. Schedule 6 - Form of Transfer Documents: Templates of all transfer documents required for closing

7. Appendix A - Asset List: Detailed inventory of assets included in the purchase

8. Appendix B - Required Consents: List of third-party consents required for the transaction

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

Real Estate

Technology

Retail

Healthcare

Automotive

Energy

Mining

Telecommunications

Financial Services

Agriculture

Infrastructure

Pharmaceuticals

Consumer Goods

Industrial Equipment

Relevant Teams

Legal

Finance

Procurement

Corporate Development

Mergers & Acquisitions

Risk Management

Treasury

Compliance

Commercial

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Legal Director

Corporate Lawyer

Finance Director

Commercial Director

Procurement Manager

Business Development Manager

Mergers & Acquisitions Director

Contract Manager

Risk Manager

Company Secretary

Treasury Manager

Financial Controller

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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