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Raw Material Supply Agreement

Raw Material Supply Agreement Template for India

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Key Requirements PROMPT example:

Raw Material Supply Agreement

"I need a Raw Material Supply Agreement for my pharmaceutical manufacturing company in Mumbai to purchase active pharmaceutical ingredients from a supplier in Gujarat, with specific focus on quality control requirements and regulatory compliance for pharmaceutical grade materials."

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Document background
A Raw Material Supply Agreement is essential for businesses in India that rely on regular procurement of raw materials for their manufacturing or production processes. This document is particularly relevant when establishing long-term supply relationships that require detailed terms for quality standards, delivery schedules, and pricing mechanisms. The agreement must comply with Indian commercial laws, including the Sale of Goods Act, 1930, the Indian Contract Act, 1872, and relevant industry-specific regulations. It's typically used when the value or criticality of raw materials necessitates a formal contractual arrangement, rather than relying on purchase orders alone. The agreement provides protection for both parties by clearly defining responsibilities, risk allocation, and dispute resolution mechanisms within the Indian legal framework.
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, including brief description of parties' businesses and purpose of the agreement

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

4. Supply Obligations: Core obligations of supplier regarding quality, quantity, and specifications of raw materials

5. Ordering Process: Procedures for placing orders, lead times, and order confirmation

6. Delivery Terms: Delivery schedules, locations, transportation responsibilities, and Incoterms

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

8. Quality Requirements: Quality standards, testing procedures, and acceptance criteria

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

10. Warranties: Supplier's warranties regarding quality, compliance with specifications, and fitness for purpose

11. Term and Termination: Duration of agreement and circumstances for termination

12. Force Majeure: Events excusing performance and procedures during force majeure

13. Confidentiality: Protection of confidential information exchanged during the relationship

14. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes

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

Optional Sections

1. Minimum Purchase Commitment: Used when buyer commits to purchasing minimum quantities over specified periods

2. Exclusivity: Include when either party is granted exclusive rights

3. Price Adjustment Mechanism: Include for long-term agreements or volatile market conditions

4. Storage and Warehousing: Required when supplier needs to maintain buffer stock or specific storage conditions

5. Insurance Requirements: Detailed insurance obligations when high-value or hazardous materials are involved

6. Environmental Compliance: Include for materials requiring special handling or environmental permits

7. Import/Export Requirements: Necessary for international supply arrangements

8. Intellectual Property Rights: Include when proprietary processes or specifications are involved

9. Change Control: Include for technical products requiring formal change management

10. Safety Data Requirements: Include for hazardous or regulated materials

Suggested Schedules

1. Product Specifications: Detailed technical specifications of raw materials

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

3. Quality Standards: Specific quality parameters and testing methods

4. Delivery Locations: List of approved delivery points and specific requirements

5. Key Performance Indicators: Metrics for measuring supplier performance

6. Form of Purchase Order: Standard template for placing orders

7. Safety Data Sheets: Required for hazardous materials

8. Approved Subcontractors: List of pre-approved transportation or testing providers

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

Chemicals and Petrochemicals

Textiles

Pharmaceuticals

Automotive

Construction

Steel and Metals

Food and Beverages

Electronics

Mining

Relevant Teams

Procurement

Legal

Supply Chain

Operations

Quality Control

Manufacturing

Commercial

Contract Management

Production

Vendor Management

Relevant Roles

Procurement Manager

Supply Chain Director

Legal Counsel

Quality Control Manager

Operations Director

Commercial Manager

Contract Manager

Manufacturing Manager

Chief Operating Officer

Purchasing Officer

Vendor Relations Manager

Materials Manager

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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