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Commercial Sales Contract Template for India

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Key Requirements PROMPT example:

Commercial Sales Contract

"I need a Commercial Sales Contract for my manufacturing company based in Mumbai to supply industrial machinery parts to various automotive companies across India, with standard warranty terms and quarterly delivery schedules starting from March 2025."

Document background
The Commercial Sales Contract serves as a fundamental legal instrument for business-to-business transactions in India. It is essential for companies engaged in the sale and purchase of goods, whether for domestic trade or international commerce subject to Indian jurisdiction. This document is structured to comply with the Indian Contract Act, 1872, the Sale of Goods Act, 1930, and other relevant commercial laws, incorporating necessary provisions for GST compliance and current business practices. The contract typically addresses product specifications, quality standards, delivery terms, warranty provisions, and risk allocation, while also including mechanisms for dispute resolution and performance security. It is particularly valuable for recurring business relationships or high-value single transactions where detailed terms need to be clearly documented and legally enforceable.
Suggested Sections

1. Parties: Identification and details of the seller and buyer, including registered addresses and company registration numbers

2. Background: Context of the commercial relationship and purpose of the agreement

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

4. Scope of Supply: Detailed description of goods to be supplied under the contract

5. Price and Payment Terms: Purchase price, payment schedule, and payment methods

6. Delivery Terms: Delivery schedule, location, and terms (including Incoterms if applicable)

7. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria

8. Warranties and Representations: Warranties regarding goods quality, title, and general representations of the parties

9. Title and Risk: Transfer of ownership and risk in the goods

10. Limitation of Liability: Limits on liability of both parties

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

12. Force Majeure: Events excusing performance and related procedures

13. Confidentiality: Protection of confidential information exchanged

14. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction

15. Dispute Resolution: Process for resolving disputes between parties

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Insurance: Insurance requirements - include when high-value goods or specific risks need coverage

2. Intellectual Property Rights: IP provisions - include when goods involve patents, trademarks, or other IP

3. Export/Import Compliance: Include for international sales requiring compliance with trade regulations

4. After-Sales Service: Include when maintenance or support services are part of the sale

5. Training: Include when seller must provide training on use of goods

6. Bank Guarantee/Performance Security: Include when security for performance is required

7. Indemnification: Specific indemnities - include for high-risk transactions

8. Change Control: Include when specifications or requirements may need modification during the contract term

Suggested Schedules

1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, including any volume discounts or price adjustment mechanisms

3. Schedule 3 - Delivery Schedule: Detailed timeline for deliveries, especially for multiple shipments

4. Schedule 4 - Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria

5. Schedule 5 - Warranty Terms: Detailed warranty terms, conditions, and claim procedures

6. Schedule 6 - Service Level Requirements: If applicable, specific service levels and performance metrics

7. Appendix A - Form of Purchase Order: Standard form for placing orders under the contract

8. Appendix B - Acceptance Certificate: Standard form for accepting delivered goods

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

Manufacturing

Retail

Wholesale Trade

Information Technology

Automotive

Electronics

Consumer Goods

Industrial Equipment

Pharmaceuticals

Textiles

Food and Beverage

Construction Materials

Chemical Industry

Agriculture

Relevant Teams

Legal

Commercial

Procurement

Sales

Business Development

Operations

Finance

Compliance

Supply Chain

Risk Management

Relevant Roles

Commercial Director

Procurement Manager

Sales Manager

Legal Counsel

Contract Manager

Business Development Manager

Supply Chain Manager

Chief Commercial Officer

Purchasing Officer

Sales Director

General Counsel

Operations Manager

Finance Manager

Compliance Officer

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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