Document background
The Reverse Purchase Agreement serves as a crucial commercial instrument in Indian business transactions where parties seek to establish a structured buyback arrangement. This document type is particularly valuable in scenarios involving inventory management, supplier relationships, or commercial trading arrangements where the original seller requires or commits to repurchasing goods at a future date. The agreement, governed by Indian law, must comply with the Indian Contract Act, 1872, Sale of Goods Act, 1930, and other relevant legislation. It typically includes detailed provisions for initial sale, quality specifications, storage requirements, and the terms of the reverse purchase commitment. This type of agreement is commonly used in manufacturing, trading, and industrial sectors where companies need to manage supply chain efficiency, maintain market stability, or facilitate financing arrangements.
