International Sales Contract for India

International Sales Contract Template for India

This document is a comprehensive international sales agreement governed by Indian law, designed to facilitate cross-border commercial transactions between parties engaged in the import and export of goods. It incorporates key provisions required under Indian contract law, including the Indian Contract Act 1872 and the Sale of Goods Act 1930, while also addressing international trade considerations such as shipping terms, customs requirements, and foreign exchange regulations. The contract provides a robust framework for defining the rights, obligations, and responsibilities of both parties, including detailed provisions for payment terms, delivery conditions, quality standards, and dispute resolution mechanisms.

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What is a International Sales Contract?

The International Sales Contract is essential for businesses engaged in cross-border trade where Indian law governs the transaction. This document is particularly crucial when Indian companies are exporting goods to foreign buyers or when Indian companies are importing goods from foreign sellers. It addresses critical aspects of international trade including payment terms (often involving Letters of Credit), shipping arrangements (using Incoterms), quality specifications, compliance with import-export regulations, and dispute resolution mechanisms. The contract must comply with Indian legislation including the Indian Contract Act, Sale of Goods Act, and FEMA regulations, while also considering international trade practices and customs requirements. It provides comprehensive protection for both parties by clearly defining their rights and obligations in the context of international commerce.

What sections should be included in a International Sales Contract?

1. Parties: Identification of buyer and seller with full legal names, registration details, and addresses

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

3. Definitions: Definitions of key terms used throughout the agreement, including trade terms (Incoterms)

4. Sale and Purchase: Core agreement to sell and purchase, including product description and quantity

5. Price and Payment Terms: Purchase price, currency, payment method, and payment schedule

6. Delivery and Shipping: Delivery terms, Incoterms, shipping arrangements, and transfer of risk

7. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria

8. Title and Risk: Transfer of ownership and risk allocation

9. Warranties and Representations: Standard warranties regarding product quality, compliance, and authority to enter agreement

10. Compliance with Laws: Obligations regarding export/import laws, licenses, and permits

11. Force Majeure: Events excusing performance and procedures for handling such events

12. Termination: Grounds for termination and consequences

13. Dispute Resolution: Governing law, jurisdiction, and dispute resolution procedures

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

What sections are optional to include in a International Sales Contract?

1. Intellectual Property Rights: Include when the goods involve patents, trademarks, or other IP rights

2. Confidentiality: Include when sensitive information will be exchanged

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

4. Bank Guarantees: Include when payment security is required

5. After-Sales Services: Include for products requiring installation, maintenance, or support

6. Training: Include when seller must provide training on product use

7. Exclusivity: Include when granting exclusive rights in certain territories

8. Customs and Duties: Include detailed customs provisions when responsibilities need specific allocation

What schedules should be included in a International Sales Contract?

1. Product Specifications: Detailed technical specifications of the goods

2. Price List: Detailed pricing information, especially for multiple products

3. Delivery Schedule: Detailed timeline for deliveries, especially for multiple shipments

4. Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria

5. Required Documents: List of documents required for shipping, customs, and payment

6. Warranty Terms: Detailed warranty terms and procedures

7. Bank Details: Banking information for payments

8. Authorized Representatives: List of authorized representatives for various purposes under the contract

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

Cost

Free to use

Relevant legal definitions

Clauses

Relevant Industries

Manufacturing

Textiles and Apparel

Agriculture and Food Processing

Pharmaceuticals

Automotive

Electronics and Technology

Chemical Industry

Consumer Goods

Industrial Equipment

Metal and Mining

Energy and Resources

Machinery and Equipment

Relevant Teams

Legal

International Trade

Procurement

Sales

Finance

Compliance

Supply Chain

Operations

Risk Management

Commercial

Relevant Roles

Export Manager

Import Manager

International Trade Specialist

Commercial Director

Supply Chain Manager

Procurement Manager

Legal Counsel

Contract Manager

Business Development Manager

Compliance Officer

Trade Finance Manager

Logistics Manager

Chief Financial Officer

Sales Director

Operations Manager

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What is a International Sales Contract?

What sections should be included in a International Sales Contract?

What sections are optional to include in a International Sales Contract?

What schedules should be included in a International Sales Contract?

Authors

Alex Denne

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