Document background
The Discount Agreement serves as a crucial document in commercial relationships where systematic price reductions or rebates are offered based on specific criteria such as purchase volume, payment terms, or performance metrics. This agreement type is essential in the Indian market where structured discount programs are common in business-to-business relationships. The document ensures compliance with Indian contract law, competition law, and GST regulations while providing a clear framework for implementing and managing discount programs. It typically includes detailed mechanisms for discount calculation, qualification criteria, implementation procedures, and dispute resolution methods. The agreement is particularly important in sectors with regular bulk purchases or ongoing supply relationships, where systematic discount structures need to be formally documented and managed.
