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Service Purchase Agreement Template for India

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Key Requirements PROMPT example:

Service Purchase Agreement

"I need a Service Purchase Agreement for an IT consulting company providing software development services to a manufacturing company, with specific provisions for intellectual property rights and source code ownership, starting from March 2025."

Document background
A Service Purchase Agreement is essential for businesses operating in India that need to formalize their service procurement arrangements. This document is specifically designed to comply with Indian contract law and regulatory requirements while providing a robust framework for service delivery and management. It is commonly used when a company needs to engage external service providers for various business functions, from IT services to facility management. The agreement comprehensively covers service specifications, commercial terms, performance standards, and risk allocation between parties. It's particularly important in the Indian business context where service relationships need to account for local regulatory requirements, tax implications (especially GST), and specific industry regulations. The document serves as a critical tool for managing service relationships, ensuring clear accountability, and providing legal protection for both service providers and recipients.
Suggested Sections

1. Parties: Identification and details of the service provider and service recipient

2. Background: Context of the agreement and brief description of the parties' intentions

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

4. Scope of Services: Detailed description of services to be provided

5. Term and Termination: Duration of the agreement and conditions for termination

6. Payment Terms: Pricing, payment schedule, invoicing, and payment methods

7. Service Provider Obligations: Key responsibilities and commitments of the service provider

8. Service Recipient Obligations: Key responsibilities and commitments of the service recipient

9. Service Levels: Performance standards and metrics for service delivery

10. Intellectual Property Rights: Ownership and usage rights of IP created or used during service delivery

11. Confidentiality: Protection and handling of confidential information

12. Indemnification: Mutual indemnification obligations and procedures

13. Limitation of Liability: Caps and exclusions on liability

14. Force Majeure: Handling of events beyond reasonable control

15. Governing Law and Jurisdiction: Applicable law and courts for dispute resolution

16. Notices: Method and addresses for formal communications

17. General Provisions: Standard boilerplate clauses including assignment, severability, and entire agreement

Optional Sections

1. Change Control: Process for managing changes to services or agreement terms - include when services may evolve

2. Data Protection: Specific obligations regarding personal data handling - include when personal data is processed

3. Insurance: Insurance requirements and coverage - include for high-risk services

4. Transition Services: Provisions for service transfer at start or end - include for complex service arrangements

5. Compliance with Laws: Specific regulatory compliance obligations - include for regulated industries

6. Personnel: Requirements for service provider staff - include when services are delivered on-site

7. Audit Rights: Rights to audit service provider's operations - include for critical services

8. Business Continuity: Disaster recovery and business continuity requirements - include for essential services

9. Anti-Corruption: Anti-bribery and corruption provisions - include for international services

10. Subcontracting: Rules for engaging subcontractors - include when subcontracting is likely

Suggested Schedules

1. Schedule 1 - Service Description: Detailed technical and operational specifications of services

2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics, measurement methods, and penalties

3. Schedule 3 - Charges and Payment: Detailed pricing structure, rates, and payment terms

4. Schedule 4 - Contact Details: Key personnel and escalation matrix

5. Schedule 5 - Service Locations: Approved locations for service delivery

6. Appendix A - Technical Requirements: Technical specifications and requirements

7. Appendix B - Security Requirements: Information security and physical security requirements

8. Appendix C - Form of Change Order: Template for documenting agreed changes

9. Appendix D - Acceptance Testing: Testing procedures and acceptance criteria

10. Appendix E - Exit Plan: Procedures for service termination and transition

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

Information Technology

Professional Services

Manufacturing

Healthcare

Financial Services

Telecommunications

Construction

Consulting

Logistics

Facilities Management

Business Process Outsourcing

Real Estate

Education

Energy

Retail

Relevant Teams

Legal

Procurement

Finance

Operations

Risk Management

Compliance

Vendor Management

Commercial

Supply Chain

Project Management

Business Development

Internal Audit

Relevant Roles

Procurement Manager

Legal Counsel

Contract Manager

Chief Financial Officer

Operations Director

Project Manager

Vendor Management Specialist

Risk Manager

Compliance Officer

Business Unit Head

Supply Chain Manager

Finance Director

Commercial Manager

General Counsel

Chief Operating 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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