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Long Term Supplier Agreement Template for India

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Key Requirements PROMPT example:

Long Term Supplier Agreement

"I need a Long Term Supplier Agreement for an automotive parts manufacturing business in India, with special focus on quality control standards and performance metrics, to be effective from January 2025."

Document background
This Long Term Supplier Agreement template is designed for use in establishing sustained commercial relationships between suppliers and buyers operating in India. It is particularly suitable for arrangements where parties anticipate regular, ongoing supply of goods over an extended period, typically one year or more. The document addresses key commercial, operational, and legal requirements under Indian law, including elements required by the Indian Contract Act, Sale of Goods Act, and GST legislation. It is structured to provide comprehensive coverage of supply terms while maintaining flexibility for specific industry requirements and commercial negotiations. The agreement is especially relevant for businesses seeking to establish stable supply chains with clear terms for pricing, quality, delivery, and risk allocation.
Suggested Sections

1. Parties: Identification and details of the supplier and buyer entities

2. Background: Context of the agreement and business relationship

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

4. Scope of Supply: Detailed description of goods/services to be supplied

5. Term and Renewal: Duration of agreement and renewal provisions

6. Ordering Process: Procedures for placing and accepting orders

7. Delivery Terms: Delivery timelines, locations, and logistics arrangements

8. Price and Payment: Pricing structure, payment terms, and invoicing procedures

9. Quality Requirements: Quality standards, specifications, and quality control procedures

10. Warranties: Warranties regarding products, services, and performance

11. Title and Risk: Transfer of ownership and risk in goods

12. Compliance: Legal and regulatory compliance obligations

13. Confidentiality: Protection of confidential information

14. Intellectual Property: IP rights and protections

15. Liability and Indemnity: Limitation of liability and indemnification provisions

16. Force Majeure: Events excusing performance

17. Termination: Termination rights and consequences

18. Dispute Resolution: Process for resolving disputes

19. Governing Law: Applicable law and jurisdiction

20. General Provisions: Standard boilerplate clauses

Optional Sections

1. Insurance: Specific insurance requirements - include when high-value goods or significant risks involved

2. Business Continuity: Business continuity and disaster recovery requirements - for critical supply relationships

3. Environmental Compliance: Environmental standards and requirements - for environmentally sensitive industries

4. Data Protection: Data protection and privacy obligations - when personal data is processed

5. Anti-Corruption: Anti-corruption and ethics requirements - for international trade or public sector contracts

6. Import/Export: Import/export compliance - for international supply arrangements

7. Change Control: Process for managing changes - for complex or technical supplies

8. Security Requirements: Security protocols - for sensitive industries or government contracts

9. Performance Metrics: KPIs and service levels - for performance-critical supplies

10. Parent Company Guarantee: Parent company support - when supplier's financial strength is important

Suggested Schedules

1. Schedule 1 - Product Specifications: Detailed technical specifications of products

2. Schedule 2 - Pricing Schedule: Detailed pricing, including any volume discounts or pricing mechanisms

3. Schedule 3 - Service Levels: Performance metrics and service level requirements

4. Schedule 4 - Delivery Locations: List of approved delivery locations and specific requirements

5. Schedule 5 - Quality Standards: Detailed quality requirements and testing procedures

6. Schedule 6 - Key Contacts: Contact details for key personnel on both sides

7. Schedule 7 - Form of Purchase Order: Standard form of purchase order to be used

8. Schedule 8 - Reporting Requirements: Templates and requirements for regular reporting

9. Appendix A - Insurance Requirements: Detailed insurance coverage requirements

10. Appendix B - Compliance Certificates: Required compliance certifications and documentation

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

Automotive

Electronics

Fast-Moving Consumer Goods

Pharmaceuticals

Chemicals

Retail

Telecommunications

Information Technology

Industrial Equipment

Textiles

Food and Beverage

Construction Materials

Relevant Teams

Legal

Procurement

Supply Chain

Operations

Finance

Quality Assurance

Risk and Compliance

Commercial

Logistics

Production

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Chief Operating Officer

Sourcing Manager

Vendor Manager

Operations Manager

Quality Assurance Manager

Finance Director

Risk Manager

Compliance Officer

Managing Director

Business Development 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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