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Master Sales Agreement for Hong Kong

Master Sales Agreement Template for Hong Kong

A Master Sales Agreement governed by Hong Kong law is a comprehensive commercial contract that establishes the framework for ongoing sales transactions between parties. It sets out the fundamental terms and conditions that will govern all future sales, including ordering processes, delivery terms, warranties, and payment conditions. This agreement is particularly suited to the Hong Kong business environment, incorporating local commercial practices and legal requirements while providing a flexible structure for international trade relationships. The document addresses key aspects of Hong Kong contract law, including the Sale of Goods Ordinance and Control of Exemption Clauses Ordinance, while establishing clear mechanisms for dispute resolution under Hong Kong jurisdiction.

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What is a Master Sales Agreement?

The Master Sales Agreement serves as the primary contractual framework for businesses engaging in repeated sales transactions in or through Hong Kong. It is particularly useful when parties anticipate an ongoing commercial relationship involving multiple purchase orders over time. This document establishes the overarching terms and conditions that will govern all subsequent sales transactions, eliminating the need to negotiate terms for each individual sale. The agreement incorporates Hong Kong legal requirements and commercial practices, making it suitable for both domestic and international trade relationships. It typically includes provisions for ordering procedures, pricing mechanisms, delivery terms, quality standards, and dispute resolution, while remaining flexible enough to accommodate specific industry requirements and business needs. The Master Sales Agreement is designed to provide legal certainty while facilitating efficient business operations under Hong Kong law.

What sections should be included in a Master Sales Agreement?

1. Parties: Identification of the contracting parties including full legal names, registration numbers, and addresses

2. Background: Context of the agreement and business relationship between the parties

3. Definitions: Defined terms used throughout the agreement

4. Scope of Agreement: Framework terms governing the overall relationship and future purchase orders

5. Ordering Process: Procedures for submitting and accepting purchase orders

6. Prices and Payment: Pricing mechanisms, payment terms, invoicing requirements, and currency provisions

7. Delivery and Acceptance: Terms regarding delivery, inspection, and acceptance of goods

8. Title and Risk: Transfer of ownership and risk in the goods

9. Warranties: Product warranties and quality guarantees

10. Liability and Indemnification: Limitation of liability and mutual indemnification provisions

11. Term and Termination: Duration of agreement and termination rights

12. Confidentiality: Protection of confidential information exchanged between parties

13. Force Majeure: Rights and obligations during events beyond reasonable control

14. Governing Law and Jurisdiction: Hong Kong law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Master Sales Agreement?

1. Intellectual Property Rights: IP ownership and licenses - include when dealing with branded products or custom manufacturing

2. Quality Control: Detailed quality requirements and testing procedures - important for manufacturing or regulated industries

3. Compliance with Laws: Specific regulatory compliance obligations - essential for regulated industries or cross-border trade

4. Insurance: Insurance requirements - important for high-value goods or high-risk industries

5. Data Protection: Data handling obligations - include when personal data processing is involved

6. Business Continuity: Disaster recovery and business continuity requirements - important for critical supply relationships

7. Environmental Compliance: Environmental standards and certifications - relevant for industries with environmental impact

8. Anti-Corruption: Anti-bribery and corruption provisions - important for international trade or public sector contracts

What schedules should be included in a Master Sales Agreement?

1. Schedule 1 - Products and Pricing: Detailed list of products and price lists subject to the agreement

2. Schedule 2 - Service Levels: Performance metrics and service level requirements

3. Schedule 3 - Technical Specifications: Detailed product specifications and requirements

4. Schedule 4 - Key Contacts: List of key personnel and contact details for both parties

5. Schedule 5 - Order Form Template: Standard form for submitting purchase orders

6. Schedule 6 - Return and Rejection Procedures: Detailed procedures for handling defective or rejected goods

7. Schedule 7 - Territory and Exclusivity: Geographical scope and any exclusivity arrangements

8. Appendix A - Quality Standards: Specific quality standards, certifications, and testing procedures

Authors

Alex Denne

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

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions








































Clauses








































Relevant Industries

Manufacturing

Retail

Technology

Telecommunications

Healthcare and Pharmaceuticals

Construction and Engineering

Automotive

Consumer Goods

Industrial Equipment

Electronics

Food and Beverage

Chemical and Materials

Energy and Utilities

Relevant Teams

Legal

Sales

Procurement

Commercial

Finance

Operations

Compliance

Supply Chain

Business Development

Contract Management

Relevant Roles

Chief Commercial Officer

Head of Sales

Procurement Manager

Legal Counsel

Commercial Director

Supply Chain Manager

Contract Manager

Business Development Director

Chief Financial Officer

Operations Director

Compliance Officer

Sales Operations Manager

Category Manager

Vendor 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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