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Buying Agency Agreement Template for India

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Key Requirements PROMPT example:

Buying Agency Agreement

"I need a Buying Agency Agreement for my US-based fashion retail company to appoint an Indian buying agent who will source textiles and finished garments from manufacturers in Maharashtra and Gujarat, with a 5% commission structure and exclusive territory rights, starting March 2025."

Document background
The Buying Agency Agreement is a crucial document for companies seeking to establish or maintain procurement operations in India through a local representative. This agreement is commonly used when a company (Principal) needs a specialized agent to identify suppliers, negotiate prices, ensure quality control, and manage procurement processes in the Indian market. The document, governed by Indian law, particularly the Indian Contract Act 1872 and related commercial legislation, defines the agent's authority, responsibilities, and compensation structure. It becomes essential when companies want to leverage local expertise and presence without establishing their own procurement office in India. The agreement typically includes detailed provisions for supplier selection, quality control, logistics coordination, and compliance with Indian regulations, making it particularly valuable for international companies sourcing from India or Indian companies expanding their procurement capabilities through external agents.
Suggested Sections

1. Parties: Identification of the Principal and the Buying Agent with complete legal names and addresses

2. Background: Context of the agreement, including the Principal's business and need for a buying agent

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

4. Appointment and Scope: Formal appointment of the agent and detailed scope of services to be provided

5. Term and Termination: Duration of the agreement and circumstances for termination

6. Agent's Duties and Responsibilities: Comprehensive list of the agent's obligations and responsibilities

7. Principal's Obligations: Principal's commitments and responsibilities to the agent

8. Commission Structure: Detailed breakdown of commission rates and payment terms

9. Ordering Process: Procedures for placing and processing orders

10. Quality Control: Quality assurance procedures and standards

11. Confidentiality: Obligations regarding confidential information

12. Non-Competition: Restrictions on agent's activities with competitors

13. Indemnification: Mutual indemnification provisions

14. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

15. General Provisions: Standard boilerplate clauses including force majeure, notices, etc.

Optional Sections

1. Intellectual Property Rights: Required when the agent will be handling branded products or creating new intellectual property

2. Insurance: Needed when dealing with high-value products or specific industry requirements

3. Compliance with Anti-Corruption Laws: Essential for international trade or when dealing with government entities

4. Sub-Agents: Include when the agent may need to appoint sub-agents

5. Marketing and Promotion: Required if agent will be involved in promotional activities

6. Training: Include when principal will provide training to agent's staff

7. Performance Targets: Optional section for establishing minimum performance criteria

8. Digital Communications: Include when significant part of business will be conducted online

Suggested Schedules

1. Schedule 1 - Commission Rates: Detailed breakdown of commission structures and calculations

2. Schedule 2 - Territory: Geographical areas covered by the agreement

3. Schedule 3 - Approved Suppliers: List of pre-approved suppliers if applicable

4. Schedule 4 - Product Categories: Details of products/services covered under the agreement

5. Schedule 5 - Quality Standards: Specific quality requirements and standards

6. Schedule 6 - Operating Procedures: Detailed procedures for day-to-day operations

7. Schedule 7 - Reporting Format: Templates and requirements for regular reporting

8. Appendix A - Power of Attorney: If required, specific powers granted to the agent

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions














































Clauses









































Relevant Industries

Retail

Manufacturing

Textiles and Apparel

Electronics

Automotive

Consumer Goods

Industrial Equipment

Food and Beverage

Pharmaceuticals

Handicrafts and Artisanal Products

Fashion and Accessories

Home Furnishings

Construction Materials

Relevant Teams

Procurement

Legal

Supply Chain

Operations

Commercial

Finance

Quality Assurance

International Trade

Vendor Management

Risk Management

Compliance

Business Development

Relevant Roles

Procurement Manager

Sourcing Director

Supply Chain Manager

Commercial Director

Legal Counsel

Chief Procurement Officer

Buying Agent

Merchandising Manager

Operations Manager

Contract Manager

Business Development Manager

Quality Assurance Manager

International Trade Manager

Vendor Relations 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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