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Module Supply Agreement Template for India

A Module Supply Agreement is a comprehensive commercial contract governed by Indian law that establishes the terms and conditions for the supply of specific modules or components between a supplier and a buyer. The agreement details quality specifications, delivery terms, pricing mechanisms, and warranty obligations while ensuring compliance with Indian manufacturing and commerce regulations. It incorporates provisions from key Indian legislation including the Indian Contract Act, 1872, and the Sale of Goods Act, 1930, while addressing modern commercial requirements and industry-specific standards.

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What is a Module Supply Agreement?

The Module Supply Agreement is essential for businesses operating in India that rely on regular supply of specialized modules or components for their operations. This agreement type is particularly crucial in manufacturing, technology, and industrial sectors where consistent quality and reliable supply chains are paramount. The document addresses the complex requirements of modern supply relationships while ensuring compliance with Indian commercial law. It typically includes detailed specifications, quality standards, delivery schedules, and pricing mechanisms, making it suitable for long-term supply arrangements. The agreement becomes especially important when the modules are critical components of the buyer's final product or manufacturing process, requiring careful attention to quality control, warranties, and technical specifications.

What sections should be included in a Module Supply Agreement?

1. Parties: Identification and details of the supplier and purchaser

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

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

4. Supply Obligations: Core obligations of the supplier including quality, quantity, and delivery commitments

5. Ordering Process: Procedures for placing and accepting orders

6. Price and Payment: Pricing structure, payment terms, and invoicing procedures

7. Delivery and Acceptance: Terms related to delivery, inspection, and acceptance of modules

8. Quality Requirements: Quality standards, testing procedures, and compliance requirements

9. Warranties: Warranties regarding product quality, performance, and fitness for purpose

10. Title and Risk: Transfer of ownership and risk in the modules

11. Intellectual Property: IP rights, licenses, and protections

12. Confidentiality: Protection of confidential information and trade secrets

13. Term and Termination: Duration of agreement and termination provisions

14. Liability and Indemnity: Limitation of liability and indemnification obligations

15. Force Majeure: Provisions for unforeseen circumstances affecting performance

16. Governing Law and Jurisdiction: Applicable law and dispute resolution mechanisms

What sections are optional to include in a Module Supply Agreement?

1. Forecast and Planning: Include when regular supply requires advance planning and forecasting

2. Tooling and Equipment: Include when specific tools or equipment are provided by either party

3. Environmental Compliance: Include when there are specific environmental requirements or certifications

4. Import/Export Compliance: Include for international supply arrangements

5. Insurance: Include when specific insurance requirements need to be detailed

6. Change Control: Include when formal processes for changes to specifications are needed

7. Service Level Agreement: Include when specific performance metrics need to be maintained

8. Business Continuity: Include when supply chain resilience is critical

9. Anti-Corruption Compliance: Include for high-value contracts or government supplies

10. Data Protection: Include when personal data processing is involved

What schedules should be included in a Module Supply Agreement?

1. Product Specifications: Detailed technical specifications of the modules

2. Pricing Schedule: Detailed pricing structure, including any volume discounts

3. Quality Standards and Testing Procedures: Specific quality requirements and testing protocols

4. Service Levels: Detailed performance metrics and measurement criteria

5. Order Form Template: Standard form for placing orders

6. Delivery Locations: List of approved delivery locations and specific requirements

7. Warranty Terms: Detailed warranty terms and claim procedures

8. Acceptance Test Criteria: Specific criteria for acceptance testing of modules

9. Contact Details: Key contacts and escalation matrix for both parties

10. Compliance Certificates: Required regulatory and quality certifications

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

Document Type

Supply Agreement

Cost

Free to use

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