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Credit Agreement For Supply Of Goods Template for India

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Key Requirements PROMPT example:

Credit Agreement For Supply Of Goods

"I need a Credit Agreement for Supply of Goods for my manufacturing company to supply industrial equipment worth INR 50 crores to a distributor in Mumbai, with quarterly deliveries throughout 2025 and a revolving credit facility with 60-day payment terms."

Document background
The Credit Agreement For Supply of Goods is a specialized commercial contract used when a supplier provides goods to a business customer on credit terms, or when a third-party financier facilitates the purchase of goods between a supplier and buyer. This document is particularly relevant in the Indian business context, where it must comply with various local regulations including the Indian Contract Act, Sale of Goods Act, and relevant banking regulations. The agreement typically includes detailed provisions about the goods being supplied, credit terms, interest rates, security arrangements, and enforcement mechanisms. It's commonly used in manufacturer-distributor relationships, large-scale industrial purchases, and recurring supply arrangements where immediate payment isn't feasible or desirable. The document needs to balance commercial flexibility with legal enforceability under Indian law, while providing adequate protection for both the creditor's financial interests and the buyer's rights regarding the goods supplied.
Suggested Sections

1. Parties: Identification of the creditor/supplier and the borrower/purchaser with full legal names and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the credit facility for goods supply

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Credit Facility: Details of the credit amount, purpose, and terms of the facility

5. Supply of Goods: Terms and conditions relating to the supply, delivery, and acceptance of goods

6. Payment Terms: Payment schedule, interest rates, fees, and payment mechanisms

7. Security: Details of any security or collateral provided for the credit facility

8. Representations and Warranties: Statements of fact and assurances given by both parties

9. Covenants: Ongoing obligations of the borrower during the term of the agreement

10. Events of Default: Circumstances constituting default and consequences thereof

11. Remedies: Rights and remedies available to parties in case of default or breach

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

13. Notices: Process and requirements for formal communications between parties

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

15. General Provisions: Standard boilerplate clauses including assignment, amendments, and severability

Optional Sections

1. Insurance: Requirements for insurance of goods or credit facility, used when specific insurance coverage is required

2. Force Majeure: Provisions for unforeseen circumstances affecting performance, important in long-term supply arrangements

3. Guarantees: Terms of any personal or corporate guarantees, included when additional security is required

4. Intellectual Property: IP rights and licenses if relevant to the supplied goods

5. Confidentiality: Provisions for protecting confidential information, important in high-value or sensitive transactions

6. Anti-Money Laundering: Compliance requirements for AML regulations, necessary for regulated entities

7. Export Controls: Compliance with export regulations, needed for international trade

8. Environmental Compliance: Environmental standards and compliance, relevant for specific industries

Suggested Schedules

1. Schedule 1 - Goods Description: Detailed specification of goods to be supplied including quantity, quality, and technical specifications

2. Schedule 2 - Credit Terms: Detailed breakdown of credit facility, interest calculations, and repayment schedule

3. Schedule 3 - Security Details: Description of security or collateral including valuation and maintenance requirements

4. Schedule 4 - Delivery Schedule: Timeline and requirements for delivery of goods

5. Schedule 5 - Form of Drawdown Notice: Template for requesting disbursement under the credit facility

6. Schedule 6 - Conditions Precedent: List of documents and conditions to be satisfied before facility becomes effective

7. Schedule 7 - Forms of Certificates: Standard forms for compliance certificates and other required documentation

8. Appendix A - Key Contacts: List of authorized representatives and contact details for both parties

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

Industrial Equipment

Consumer Goods

Automotive

Electronics

Construction Materials

Agricultural Products

Pharmaceuticals

Textiles

Heavy Machinery

Food and Beverage

Relevant Teams

Legal

Finance

Procurement

Commercial

Credit Control

Risk Management

Operations

Supply Chain

Treasury

Contract Administration

Relevant Roles

Chief Financial Officer

Finance Director

Commercial Director

Procurement Manager

Credit Manager

Supply Chain Manager

Legal Counsel

Contract Manager

Risk Manager

Treasury Manager

Operations Director

Business Development Manager

Accounts Receivable Manager

Corporate Finance Manager

Commercial Lawyer

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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