Sales Agreement Between Two Parties for India

Sales Agreement Between Two Parties Template for India

A comprehensive legal document governed by Indian law that formalizes the sale and purchase of goods between two parties. This agreement outlines the essential terms and conditions of the sale, including product specifications, pricing, delivery terms, warranties, and payment conditions. The document ensures compliance with the Indian Contract Act, 1872, and the Sale of Goods Act, 1930, while incorporating necessary provisions for GST and other regulatory requirements. It provides a clear framework for the transaction, defining the rights and obligations of both parties, and includes mechanisms for dispute resolution under Indian jurisdiction.

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What is a Sales Agreement Between Two Parties?

The Sales Agreement Between Two Parties is a crucial commercial document used to formalize transactions involving the sale and purchase of goods in India. This agreement is essential when businesses or individuals engage in significant sales transactions that require detailed documentation of terms, conditions, and obligations. The document is structured to comply with Indian legislative requirements, particularly the Indian Contract Act, 1872, and the Sale of Goods Act, 1930, while incorporating modern commercial practices and GST considerations. It is commonly used in both domestic and international trade scenarios, providing clarity on product specifications, pricing, delivery terms, warranties, and dispute resolution mechanisms. The agreement helps minimize risks and potential disputes by clearly defining the rights and responsibilities of both parties, making it an indispensable tool for business transactions in the Indian market.

What sections should be included in a Sales Agreement Between Two Parties?

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

2. Background: Context of the agreement and brief description of the business relationship

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

4. Sale and Purchase: Core agreement to sell and purchase, including basic description of goods

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

6. Delivery and Acceptance: Terms of delivery, timing, location, and acceptance criteria

7. Title and Risk: Transfer of ownership and risk in the goods

8. Warranties and Representations: Standard warranties regarding quality, fitness for purpose, and ownership of goods

9. Limitation of Liability: Limits on liability of both parties

10. Term and Termination: Duration of agreement and circumstances for termination

11. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

12. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Sales Agreement Between Two Parties?

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

2. Quality Control: Needed for goods requiring specific quality standards or testing procedures

3. Insurance: Important when high-value goods are involved or specific insurance requirements exist

4. Confidentiality: Required when sensitive information will be shared during the transaction

5. Return and Replacement: Necessary for goods that may require return or replacement policies

6. Training and Support: Include when the goods require technical training or ongoing support

7. Export/Import Compliance: Required for international sales or restricted goods

8. Force Majeure: Important in long-term supply arrangements or high-value transactions

What schedules should be included in a Sales Agreement Between Two Parties?

1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods being sold

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices, including any volume discounts or price adjustment mechanisms

3. Schedule 3 - Delivery Schedule: Detailed delivery timelines and locations if multiple deliveries are involved

4. Schedule 4 - Quality Standards: Specific quality parameters and testing procedures

5. Schedule 5 - Warranty Terms: Detailed warranty terms and claims procedures

6. Appendix A - Required Documentation: List of documents required for the transaction (e.g., quality certificates, shipping documents)

7. Appendix B - Contact Details: Key contact persons and their details 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 | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

Sales Contract

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Retail

Wholesale Trade

Technology

Agriculture

Automotive

Consumer Goods

Electronics

Industrial Equipment

Pharmaceuticals

Textiles

Food and Beverage

Construction Materials

Chemical Industry

Energy

Relevant Teams

Legal

Procurement

Sales

Commercial

Finance

Operations

Compliance

Supply Chain

Business Development

Contract Administration

Relevant Roles

Procurement Manager

Sales Manager

Legal Counsel

Contract Manager

Commercial Director

Business Development Manager

Supply Chain Manager

Operations Manager

Chief Financial Officer

General Manager

Managing Director

Compliance Officer

Purchase Officer

Sales Director

Legal 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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