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Exclusive Service Agreement Template for India

This document is a comprehensive Exclusive Service Agreement governed by Indian law, designed to establish and regulate an exclusive service relationship between a service provider and recipient. It incorporates essential provisions required under the Indian Contract Act, 1872, and related Indian legislation, including detailed terms for exclusivity, service delivery, performance standards, and remedies. The agreement includes robust provisions for protecting both parties' interests, clear performance metrics, and specific territorial and temporal limitations of the exclusive arrangement, while ensuring compliance with Indian competition laws and sector-specific regulations.

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What is a Exclusive Service Agreement?

The Exclusive Service Agreement is a critical legal instrument used when a business entity wishes to secure exclusive rights to receive services from a provider, or when a service provider commits to serving only one client within specified parameters. This document is particularly relevant in the Indian business context, where it must comply with the Indian Contract Act, 1872, and other relevant legislation. The agreement typically includes detailed service specifications, exclusivity terms, territorial limitations, performance metrics, and protection mechanisms for both parties. It's commonly used in situations requiring dedicated service provision, such as IT services, consulting arrangements, or specialized technical services. The document should be carefully structured to ensure it doesn't violate Indian competition laws while maintaining its exclusive nature.

What sections should be included in a Exclusive Service Agreement?

1. Parties: Identification and details of the service provider and recipient, including registered addresses and company registration numbers

2. Background: Context of the agreement, relationship between parties, and purpose of entering into an exclusive arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including 'Services', 'Territory', 'Exclusivity Period'

4. Scope of Services: Detailed description of services to be provided, including specific inclusions and exclusions

5. Exclusivity Provisions: Terms of exclusive arrangement, territorial scope, and duration of exclusivity

6. Term and Renewal: Duration of the agreement, conditions for renewal, and notice periods

7. Payment Terms: Fees, payment schedule, invoicing process, and late payment consequences

8. Service Provider Obligations: Detailed responsibilities, performance standards, and compliance requirements

9. Client Obligations: Client's responsibilities, including providing necessary information and access

10. Intellectual Property Rights: Ownership and usage rights of pre-existing and created IP during service provision

11. Confidentiality: Protection of confidential information, duration of obligations, and permitted disclosures

12. Representations and Warranties: Standard and specific warranties from both parties

13. Indemnification: Mutual indemnification obligations and process

14. Limitation of Liability: Caps on liability and excluded losses

15. Termination: Termination rights, process, and consequences

16. Post-Termination Obligations: Continuing obligations and transition responsibilities

17. Governing Law and Jurisdiction: Choice of Indian law and jurisdiction details

18. General Provisions: Standard boilerplate clauses including force majeure, notices, and entire agreement

What sections are optional to include in a Exclusive Service Agreement?

1. Non-Compete: Additional restrictions on competitive activities, used when service provider has access to sensitive business information

2. Data Protection: Specific provisions for handling personal data, required when services involve data processing

3. Insurance: Insurance requirements and minimum coverage, important for high-risk services

4. Service Levels: Detailed performance metrics and consequences of breach, used for measurable services

5. Change Control: Process for making changes to services or agreement terms, useful for long-term or complex services

6. Force Majeure: Detailed provisions for handling specific events beyond parties' control, important in certain industries or regions

7. Audit Rights: Client's right to audit service provider's performance and records, important for regulated industries

8. Business Continuity: Requirements for disaster recovery and business continuity, crucial for essential services

What schedules should be included in a Exclusive Service Agreement?

1. Schedule 1 - Service Specifications: Detailed technical specifications of services, methodologies, and deliverables

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Service Levels: Performance metrics, measurement methods, and related penalties/rewards

4. Schedule 4 - Key Personnel: List of key team members and their roles/responsibilities

5. Schedule 5 - Approved Subcontractors: List of pre-approved subcontractors if any

6. Schedule 6 - Technical Requirements: Specific technical standards, systems, or platforms to be used

7. Schedule 7 - Compliance Requirements: Industry-specific compliance requirements and standards

8. Appendix A - Contact Details: Key contact persons and escalation matrix for both parties

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

Jurisdiction

India

Publisher

Genie AI

Cost

Free to use

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