The Product Contract serves as a legally binding agreement used when parties wish to establish a formal arrangement for the sale and purchase of products in India. This document is essential for businesses engaged in manufacturing, supply, or distribution of products, providing a clear framework for commercial transactions. The contract ensures compliance with Indian legislation, including the Indian Contract Act, 1872, Sale of Goods Act, 1930, and Consumer Protection Act, 2019. It is particularly valuable when parties need to define specific product specifications, quality standards, delivery terms, and ongoing supply arrangements. The document typically includes detailed provisions for pricing, payment terms, warranties, and risk allocation, making it suitable for both one-time purchases and long-term supply relationships.
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1. Parties: Identification and details of the parties entering into the contract, including registered addresses and company registration numbers
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the contract
4. Product Specifications: Detailed description of the products covered under the contract
5. Pricing and Payment Terms: Product pricing, payment schedule, and payment methods
6. Delivery Terms: Delivery schedule, logistics arrangements, and transfer of risk
7. Quality Standards: Required quality standards, testing procedures, and acceptance criteria
8. Warranties and Representations: Warranties regarding product quality, performance, and compliance with regulations
9. Term and Termination: Duration of the contract and conditions for termination
10. Intellectual Property Rights: Protection and ownership of IP related to the products
11. Confidentiality: Protection of confidential information exchanged during the contract
12. Limitation of Liability: Scope and limits of liability for both parties
13. Force Majeure: Provisions for unforeseen circumstances affecting contract performance
14. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution
15. Notices: Process and contact details for formal communications between parties
1. Minimum Purchase Commitment: Include when there are agreed minimum purchase quantities
2. Exclusivity: Include when there are exclusive dealing arrangements
3. Product Training: Include when supplier must provide training for product use
4. After-Sales Service: Include when maintenance or support services are part of the deal
5. Insurance Requirements: Include when specific insurance coverage is required
6. Compliance with Export Controls: Include for international trade or restricted products
7. Environmental Compliance: Include for products with environmental impact considerations
8. Product Recall Procedures: Include for consumer products or safety-critical items
9. Change Management: Include when product specifications may need future modifications
1. Schedule 1 - Product Specifications: Detailed technical specifications and drawings of products
2. Schedule 2 - Pricing Schedule: Detailed pricing structure, including volume discounts and price review mechanisms
3. Schedule 3 - Quality Standards and Testing Procedures: Specific quality parameters and testing methodologies
4. Schedule 4 - Delivery Schedule: Detailed delivery timelines and logistics requirements
5. Schedule 5 - Service Level Agreement: Performance metrics and service standards
6. Appendix A - Form of Purchase Order: Standard format for placing orders under the contract
7. Appendix B - Technical Documentation: Product manuals, safety instructions, and technical documents
8. Appendix C - Compliance Certificates: Required regulatory and quality certifications
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