The Third Party Management Agreement serves as a critical legal instrument for companies operating in India who wish to outsource or delegate management of specific business functions to external service providers. This document is essential when a company needs to establish a formal relationship with a third-party service provider while maintaining control over service quality, compliance, and risk management. It addresses key aspects such as service delivery standards, performance metrics, compliance with Indian regulations, data protection, and risk allocation between parties. The agreement is particularly relevant in the current business environment where companies increasingly rely on specialized service providers for various operational functions. It incorporates necessary provisions to comply with Indian legal requirements, including the Indian Contract Act, 1872, and sector-specific regulations, while providing flexibility to accommodate specific business needs and industry practices.
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1. Parties: Identification and details of all contracting parties including registered addresses and company registration numbers
2. Background: Context of the agreement, relationship between parties, and purpose of the engagement
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided by the third party manager
5. Term and Termination: Duration of the agreement, renewal terms, and termination conditions
6. Compensation and Payment Terms: Fee structure, payment schedule, and billing procedures
7. Performance Standards: Service levels, KPIs, and quality metrics
8. Obligations of the Parties: Specific responsibilities and duties of each party
9. Compliance Requirements: Regulatory compliance obligations and reporting requirements
10. Confidentiality: Protection of confidential information and trade secrets
11. Data Protection and Privacy: Handling of personal and sensitive data, compliance with data protection laws
12. Intellectual Property Rights: Ownership and usage rights of IP created or used during service provision
13. Indemnification: Protection against losses and liability allocation
14. Insurance: Required insurance coverage and minimum limits
15. Dispute Resolution: Process for resolving disputes including jurisdiction and governing law
16. Force Majeure: Provisions for unforeseen circumstances and their handling
17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Transition Services: Details of handover process when engaging or disengaging services - include when there's a complex operational transition
2. Business Continuity: Disaster recovery and business continuity requirements - include for critical services
3. Environmental Compliance: Environmental responsibilities and compliance - include for services with environmental impact
4. Anti-Bribery and Corruption: Specific anti-corruption provisions - include for high-risk jurisdictions or industries
5. Security Requirements: Physical and cyber security requirements - include for handling sensitive operations or data
6. Subcontracting: Terms for engaging subcontractors - include when subcontracting is anticipated
7. Change Control: Process for managing changes to services or terms - include for complex service arrangements
8. Staff and Training: Requirements for personnel qualifications and training - include for specialized services
9. Quality Management: Detailed quality control processes - include for manufacturing or technical services
1. Schedule A - Service Level Agreement: Detailed performance metrics, measurement methods, and penalties
2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment terms
3. Schedule C - Key Personnel: List of key staff members and their roles/responsibilities
4. Schedule D - Technical Requirements: Technical specifications and requirements for service delivery
5. Schedule E - Compliance Checklist: Specific regulatory and compliance requirements
6. Schedule F - Security Standards: Detailed security protocols and requirements
7. Schedule G - Reporting Requirements: Templates and specifications for required reports
8. Appendix 1 - Emergency Contact List: Contact details for emergency situations
9. Appendix 2 - Required Insurance Coverage: Detailed insurance requirements and minimum coverage limits
10. Appendix 3 - Service Locations: List of approved service delivery locations
Authors
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Manufacturing
Financial Services
Healthcare
Real Estate
Retail
Telecommunications
Infrastructure
Hospitality
Education
Logistics and Supply Chain
Professional Services
Energy and Utilities
Construction
Relevant Teams
Legal
Procurement
Operations
Vendor Management
Compliance
Risk Management
Finance
Project Management
Facilities Management
Contract Administration
Business Development
Strategic Sourcing
Relevant Roles
Chief Operations Officer
Procurement Manager
Contract Manager
Vendor Management Specialist
Legal Counsel
Compliance Officer
Operations Director
Facility Manager
Risk Manager
Chief Financial Officer
Project Manager
Service Delivery Manager
Business Development Manager
Strategic Sourcing Manager
General Counsel
Chief Risk Officer
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