Framework Agreement Contract for India

Framework Agreement Contract Template for India

A Framework Agreement Contract under Indian law establishes a long-term contractual relationship between parties, setting out the general terms and conditions that will govern future transactions or contracts. This master agreement streamlines subsequent dealings by providing a pre-agreed structure for future contracts, while incorporating specific requirements of Indian contract law, including provisions from the Indian Contract Act, 1872. The document outlines key commercial terms, pricing mechanisms, service levels, compliance requirements, and dispute resolution procedures, while maintaining flexibility for specific orders or statements of work to be executed under its umbrella.

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What is a Framework Agreement Contract?

Framework Agreement Contracts are essential commercial instruments in the Indian business landscape, particularly useful for organizations engaging in repeated transactions or ongoing business relationships. This type of agreement serves as a master document that sets out the fundamental terms and conditions governing future contracts or purchase orders, eliminating the need to negotiate basic terms for each transaction. The document incorporates key elements required under Indian law, including the Indian Contract Act, 1872, and other relevant legislation such as the Competition Act, 2002, and the Information Technology Act, 2000. Framework Agreement Contracts are particularly valuable in situations requiring long-term business relationships, regular supply arrangements, or ongoing service provisions, as they provide both structure and flexibility while ensuring legal compliance and risk management.

What sections should be included in a Framework Agreement Contract?

1. Parties: Identification and details of the contracting parties, including registered addresses and company registration numbers

2. Background: Context of the agreement, relationship between parties, and purpose of the framework arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Structure and Operation: Mechanics of how the framework agreement operates, including process for creating specific contracts

5. Duration and Term: Initial term, renewal provisions, and termination dates of the framework agreement

6. Ordering Process: Procedures for placing orders, accepting or rejecting orders, and documentation requirements

7. Prices and Payment: Pricing mechanism, payment terms, invoicing requirements, and price review provisions

8. Performance Standards: Required quality standards, service levels, and performance metrics

9. Obligations of the Parties: Key responsibilities and commitments of each party under the framework

10. Compliance and Regulations: Regulatory compliance requirements and applicable legal obligations

11. Confidentiality: Protection and handling of confidential information

12. Liability and Indemnification: Limitation of liability, indemnification obligations, and insurance requirements

13. Termination: Grounds for termination, termination process, and consequences of termination

14. Dispute Resolution: Process for resolving disputes, including arbitration provisions

15. General Provisions: Standard boilerplate clauses including notices, amendments, entire agreement, etc.

What sections are optional to include in a Framework Agreement Contract?

1. Intellectual Property Rights: Include when framework involves creation, licensing, or use of intellectual property

2. Data Protection: Include when personal data processing is involved in the framework arrangement

3. Export Control: Include for international trade or cross-border services

4. Change Control: Include when framework requires formal process for changes to services/products

5. Force Majeure: Include when specific force majeure provisions beyond standard ones are needed

6. Anti-Corruption and Ethics: Include when dealing with government contracts or high-risk jurisdictions

7. Environmental Compliance: Include when environmental considerations are relevant to the framework

8. Step-In Rights: Include when critical services require continuity assurance

9. Parent Company Guarantee: Include when additional financial security is required

What schedules should be included in a Framework Agreement Contract?

1. Schedule 1 - Scope of Services/Products: Detailed description of services or products covered under the framework

2. Schedule 2 - Pricing Schedule: Detailed pricing structure, rates, and charging mechanisms

3. Schedule 3 - Service Levels: Specific performance metrics, KPIs, and service level requirements

4. Schedule 4 - Order Form Template: Standard form for placing orders under the framework

5. Schedule 5 - Technical Specifications: Detailed technical requirements and specifications

6. Schedule 6 - Key Personnel: Details of key staff members responsible for framework delivery

7. Schedule 7 - Governance and Reporting: Management structure, meeting schedules, and reporting requirements

8. Schedule 8 - Change Control Procedure: Detailed process for implementing changes to services/products

9. Appendix A - Contact Details: Contact information for key representatives from each party

10. Appendix B - Compliance Requirements: Specific regulatory and compliance obligations

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

India

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Information Technology

Manufacturing

Retail

Telecommunications

Healthcare

Automotive

Construction

Professional Services

Energy

Financial Services

Logistics and Supply Chain

Consumer Goods

Relevant Teams

Legal

Procurement

Commercial

Operations

Supply Chain

Compliance

Risk Management

Finance

Business Development

Vendor Management

Relevant Roles

Chief Legal Officer

Legal Director

Commercial Director

Procurement Manager

Contract Manager

Business Development Manager

Supply Chain Manager

Operations Director

General Counsel

Legal Counsel

Compliance Officer

Risk Manager

Commercial 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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