Revenue Share Partnership Agreement for India

Revenue Share Partnership Agreement Template for India

A Revenue Share Partnership Agreement is a legally binding document governed by Indian law that establishes the terms and conditions for a business partnership based on revenue sharing arrangements. This agreement outlines the mechanism for calculating and distributing revenues between partners, defines operational responsibilities, and establishes governance frameworks. It incorporates provisions compliant with the Indian Partnership Act, 1932, and relevant taxation laws including GST regulations. The agreement includes detailed sections on revenue calculation methodologies, payment terms, audit rights, and dispute resolution mechanisms, making it suitable for various business collaboration models in the Indian market.

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What is a Revenue Share Partnership Agreement?

The Revenue Share Partnership Agreement is essential for businesses in India looking to establish collaborative ventures where partners share revenues rather than traditional profit-sharing arrangements. This document is particularly relevant in today's digital economy where platform-based businesses, service providers, and content creators frequently collaborate. It provides a comprehensive framework compliant with Indian legislation, including the Partnership Act 1932, Contract Act 1872, and relevant tax laws. The agreement is designed to address key aspects such as revenue calculation methods, distribution frequencies, audit rights, operational responsibilities, and dispute resolution mechanisms. It's commonly used in technology partnerships, franchise arrangements, distribution agreements, and various other business models where revenue sharing is preferred over fixed-fee arrangements. The document's structure ensures clarity in financial arrangements while protecting both parties' interests through well-defined terms and conditions.

What sections should be included in a Revenue Share Partnership Agreement?

1. Parties: Identification of all parties entering into the agreement with their complete legal names, addresses, and registration details

2. Background: Context of the partnership, business objectives, and purpose of the agreement

3. Definitions and Interpretation: Detailed definitions of key terms used in the agreement and rules of interpretation

4. Partnership Structure: Legal structure of the partnership, roles, and responsibilities of partners

5. Term and Commencement: Duration of the agreement and conditions for commencement

6. Revenue Sharing Framework: Detailed mechanism for revenue calculation, sharing ratios, and distribution process

7. Payment Terms: Timeline, method, and currency of revenue share payments

8. Records and Audit Rights: Requirements for maintaining financial records and rights to audit

9. Obligations of the Parties: Specific duties and responsibilities of each partner

10. Representations and Warranties: Standard and specific assurances given by each party

11. Confidentiality: Protection and handling of confidential information

12. Intellectual Property Rights: Ownership and usage rights of IP in the partnership

13. Indemnification: Mutual indemnification obligations and process

14. Termination: Grounds and process for termination of the agreement

15. Dispute Resolution: Process for resolving disputes including arbitration provisions

16. Governing Law and Jurisdiction: Applicable law and jurisdiction for the agreement

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

What sections are optional to include in a Revenue Share Partnership Agreement?

1. Non-Compete: Restrictions on competitive activities, used when partners operate in similar industries

2. Marketing and Branding: Guidelines for using each other's brands and marketing activities, relevant for customer-facing partnerships

3. Force Majeure: Provisions for unforeseen circumstances, particularly important in long-term partnerships

4. Insurance: Insurance requirements and obligations, necessary for high-risk activities

5. Compliance with Laws: Specific regulatory compliance requirements, important for regulated industries

6. Data Protection: Specific provisions for handling personal data, necessary when partnership involves data sharing

7. Step-In Rights: Rights to take over operations in specific circumstances, useful in complex operational partnerships

8. Change of Control: Provisions dealing with ownership changes of either party, important for strategic partnerships

What schedules should be included in a Revenue Share Partnership Agreement?

1. Revenue Calculation Methodology: Detailed formula and examples of revenue calculations and adjustments

2. Service Level Agreement: Performance metrics and standards for service delivery

3. Operating Procedures: Detailed operational processes and workflows

4. Financial Reporting Template: Standard format for financial reporting and revenue calculations

5. Key Personnel: List of key contacts and responsible personnel from each party

6. Compliance Requirements: Specific regulatory or industry compliance requirements

7. Territory Schedule: Geographic areas covered by the partnership, if applicable

8. Technical Requirements: Technical specifications or integration requirements

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

Technology and Software

E-commerce

Media and Entertainment

Digital Marketing

Financial Services

Education and Training

Retail and Distribution

Hospitality

Professional Services

Healthcare Services

Gaming and Interactive Entertainment

Manufacturing and Distribution

Telecommunications

Relevant Teams

Legal

Finance

Operations

Business Development

Partnerships

Compliance

Commercial

Strategy

Revenue Management

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Business Development Manager

Partnership Manager

Legal Counsel

Finance Director

Commercial Director

Operations Manager

Compliance Officer

Account Manager

Contract Manager

Revenue Manager

Strategy Director

Business Analyst

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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