The Third Party Vendor Contract is essential for businesses operating in India that engage external vendors for goods or services. This document is used when a company needs to formalize its relationship with suppliers, service providers, or contractors under Indian jurisdiction. It incorporates key elements required by Indian contract law, including specific provisions for service delivery, performance metrics, and compliance requirements. The agreement typically addresses critical aspects such as scope of services, payment terms, intellectual property rights, confidentiality, and liability allocation. It's particularly important in the Indian context due to specific regulatory requirements including GST compliance, data protection under the IT Act, and industry-specific regulations. The document serves both as a commercial framework and a risk management tool, ensuring clear delineation of responsibilities while maintaining compliance with Indian legal requirements.
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1. Parties: Identification of contracting parties including registered addresses and company details
2. Background: Context of the agreement and relationship between parties
3. Definitions: Defined terms used throughout the agreement
4. Scope of Services: Detailed description of services/goods to be provided by the vendor
5. Term and Termination: Duration of agreement and termination provisions
6. Payment Terms: Pricing, payment schedule, invoicing requirements and payment methods
7. Service Levels: Performance standards, metrics and measurement criteria
8. Vendor Obligations: Key responsibilities and commitments of the vendor
9. Client Obligations: Key responsibilities and commitments of the client
10. Intellectual Property Rights: Ownership and usage rights of IP created or used during service provision
11. Confidentiality: Protection and handling of confidential information
12. Data Protection and Privacy: Obligations regarding data handling and privacy compliance
13. Indemnification: Protection against third-party claims and losses
14. Limitation of Liability: Caps and exclusions on liability
15. Force Majeure: Provisions for unforeseen circumstances preventing performance
16. Governing Law and Jurisdiction: Applicable law and dispute resolution mechanisms
17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Insurance: Insurance requirements when vendor provides high-risk services or on-site work
2. Compliance with Laws: Specific regulatory compliance requirements for regulated industries
3. Personnel: Requirements for vendor staff when services involve deployed personnel
4. Security Requirements: Specific security protocols when handling sensitive data or accessing client systems
5. Business Continuity: Disaster recovery requirements for critical service providers
6. Audit Rights: Client's right to audit vendor operations when required for compliance or risk management
7. Change Control: Process for managing changes to services or specifications in complex service arrangements
8. Exit Management: Transition provisions for complex services requiring handover
9. Anti-Bribery and Corruption: Required for vendors in high-risk jurisdictions or government-related work
1. Schedule 1 - Service Description: Detailed technical specifications of services/goods
2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics, measurement methods, and penalties
3. Schedule 3 - Pricing and Payment Schedule: Detailed fee structure, rates, and payment milestones
4. Schedule 4 - Client Dependencies: Detailed list of client-provided resources and requirements
5. Schedule 5 - Security Requirements: Detailed security protocols and compliance requirements
6. Schedule 6 - Approved Subcontractors: List of pre-approved subcontractors if applicable
7. Schedule 7 - Data Processing Agreement: Detailed data handling requirements and procedures
8. Schedule 8 - Business Continuity Plan: Detailed disaster recovery and business continuity procedures
9. Appendix A - Contact Details: Key personnel and escalation contacts for both parties
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