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Supplier Non Compete Agreement

Supplier Non Compete Agreement Template for India

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Key Requirements PROMPT example:

Supplier Non Compete Agreement

"I need a Supplier Non-Compete Agreement for our IT services supplier in Bangalore who will have access to our proprietary software code and client data, with strong confidentiality provisions and a restriction period of 2 years after contract termination."

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Document background
The Supplier Non-Compete Agreement is essential for companies operating in India who need to protect their business interests and confidential information when engaging with suppliers. This document becomes particularly crucial when suppliers have access to sensitive information, proprietary processes, or strategic business plans. Given the Indian legal framework, particularly Section 27 of the Indian Contract Act, 1872, which generally voids restraints on trade, the agreement must be carefully structured to ensure enforceability while focusing on reasonable restrictions during the term of the supplier relationship. The document typically includes detailed provisions about restricted activities, geographical boundaries, time limitations, and consequences of breach, tailored to comply with Indian court precedents on non-compete restrictions.
Suggested Sections

1. Parties: Identification of the principal company and the supplier entering into the agreement

2. Background: Context of the supplier relationship and reason for the non-compete provisions

3. Definitions: Key terms including 'Competitive Business', 'Restricted Territory', 'Confidential Information', and 'Restricted Period'

4. Scope of Relationship: Overview of the business relationship between the parties

5. Non-Compete Obligations: Core restrictions on competitive activities during the supplier relationship

6. Territorial and Time Limitations: Specific geographical areas and duration of restrictions

7. Confidentiality Obligations: Protection of confidential information and trade secrets

8. Permitted Activities: Clear outline of activities that are allowed despite restrictions

9. Acknowledgment of Reasonableness: Supplier's acknowledgment that restrictions are reasonable and necessary

10. Breach and Remedies: Consequences of violation and available legal remedies

11. Governing Law and Jurisdiction: Specification of Indian law application and jurisdiction

12. Term and Termination: Duration of the agreement and termination provisions

Optional Sections

1. Non-Solicitation: Additional restrictions on soliciting employees or customers, included when supplier has significant customer contact

2. Intellectual Property Rights: Specific IP provisions when supplier develops or has access to proprietary technology

3. Audit Rights: Right to audit supplier's compliance, included for high-risk relationships

4. Assignment and Succession: Transfer of rights provisions, important for larger corporate suppliers

5. Independent Contractor Status: Clarification of relationship status, important when supplier relationship might be misconstrued

6. Survival Clause: Specifying which provisions survive termination, important for long-term strategic suppliers

Suggested Schedules

1. Schedule A - Restricted Territory: Detailed list of geographical areas where restrictions apply

2. Schedule B - Competitive Business Description: Detailed description of businesses and activities considered competitive

3. Schedule C - Confidential Information: Specific categories and examples of confidential information covered

4. Schedule D - Existing Commitments: Supplier's pre-existing business relationships that are excluded from restrictions

5. Appendix 1 - Compliance Certificate: Template for periodic supplier compliance certification

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions

































Clauses




























Relevant Industries

Manufacturing

Technology

Pharmaceuticals

Automotive

Electronics

Telecommunications

Chemical

Retail

E-commerce

Healthcare

Industrial Services

Defense

Aerospace

Information Technology

Research and Development

Relevant Teams

Legal

Procurement

Supply Chain

Vendor Management

Operations

Risk Management

Compliance

Commercial

Strategic Sourcing

Contract Administration

Relevant Roles

Procurement Manager

Supply Chain Director

Legal Counsel

Contract Manager

Chief Operating Officer

Vendor Management Specialist

Strategic Sourcing Manager

Business Development Director

Commercial Director

Risk Management Officer

Compliance Officer

Chief Legal Officer

Operations Manager

Category Manager

Supply Chain Analyst

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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