The Commercial Management Agreement is essential for businesses in India seeking to outsource or formalize their management functions to professional service providers. This document is particularly relevant in scenarios where specialized management expertise is required for operating facilities, properties, or business operations. The agreement, governed by Indian law including the Indian Contract Act 1872 and Companies Act 2013, typically includes detailed provisions for service scope, performance metrics, fee structures, and operational guidelines. It's commonly used in various sectors including real estate, facilities management, and commercial operations, where professional management services are crucial for efficient operations and compliance with local regulations. The Commercial Management Agreement serves as a vital tool for establishing clear accountability, risk allocation, and performance expectations between the parties involved.
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1. Parties: Identification and details of the parties entering into the agreement
2. Background: Context of the agreement, including brief description of the parties' businesses and purpose of the arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of appointment of the manager and detailed scope of management services
5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
6. Manager's Obligations: Detailed responsibilities and duties of the manager
7. Client's Obligations: Responsibilities and duties of the client
8. Fees and Payment Terms: Management fees, payment schedule, expenses, and related financial terms
9. Performance Standards: Expected service levels and performance metrics
10. Intellectual Property Rights: Ownership and usage rights of intellectual property
11. Confidentiality: Protection and handling of confidential information
12. Liability and Indemnification: Limitation of liability and mutual indemnification provisions
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
16. General Provisions: Standard boilerplate clauses including notices, amendments, assignment, etc.
1. Non-Compete: Restrictions on competitive activities, used when the manager might have access to sensitive business information
2. Insurance: Insurance requirements, included when specific coverage is needed for the services
3. Data Protection: Specific provisions for handling personal data, required when personal data processing is involved
4. Environmental Compliance: Environmental obligations, included for management of properties or facilities
5. Staffing and Employment: Terms regarding employment and staff management, needed when the agreement involves human resource management
6. Emergency Procedures: Procedures for handling emergencies, important for facility or property management
7. Quality Control: Specific quality standards and monitoring procedures, relevant for manufacturing or service quality management
8. Regulatory Compliance: Industry-specific compliance requirements, needed for regulated industries
9. Foreign Exchange: Provisions for foreign currency transactions, required for international agreements
10. Step-In Rights: Rights to take over management in specific circumstances, useful for critical business operations
1. Schedule 1 - Services Description: Detailed description of management services to be provided
2. Schedule 2 - Fee Structure: Detailed breakdown of fees, charges, and payment calculations
3. Schedule 3 - Key Performance Indicators: Specific performance metrics and measurement criteria
4. Schedule 4 - Reports and Documentation: List of required reports and their frequency
5. Schedule 5 - Key Personnel: Details of key management team members and their roles
6. Schedule 6 - Operating Procedures: Standard operating procedures and protocols
7. Schedule 7 - Properties/Assets Under Management: List of properties or assets covered under the agreement
8. Schedule 8 - Insurance Requirements: Detailed insurance coverage requirements
9. Appendix A - Forms and Templates: Standard forms and templates for reporting and communications
10. Appendix B - Compliance Checklist: Regulatory and operational compliance requirements
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Hospitality
Manufacturing
Retail
Healthcare
Information Technology
Infrastructure
Education
Facilities Management
Property Management
Asset Management
Commercial Real Estate
Industrial Operations
Shopping Centers
Business Process Management
Relevant Teams
Legal
Operations
Commercial
Compliance
Risk Management
Facilities Management
Asset Management
Business Development
Contract Administration
Project Management
Property Management
Finance
Human Resources
Relevant Roles
Chief Executive Officer
Chief Operating Officer
Facility Manager
Property Manager
Operations Director
Commercial Director
Business Development Manager
Contract Manager
Legal Counsel
Risk Manager
Compliance Officer
General Manager
Asset Manager
Project Manager
Regional Manager
Management Consultant
Operations Manager
Commercial Manager
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