Tooling Agreement for India

Tooling Agreement Template for India

A comprehensive legal agreement governed by Indian law that establishes the terms and conditions for the design, manufacture, supply, use, and maintenance of industrial tools and equipment. The document outlines ownership rights, payment terms, quality specifications, delivery schedules, and maintenance responsibilities while ensuring compliance with Indian manufacturing and industrial regulations. It includes provisions for intellectual property protection, liability allocation, and dispute resolution within the Indian legal framework.

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What is a Tooling Agreement?

The Tooling Agreement is essential for manufacturing operations in India where specialized tools and equipment are required for production processes. This document is typically used when a company needs to procure custom-made or specialized tools from a manufacturer or supplier. The agreement covers crucial aspects such as tool specifications, ownership rights, payment terms, quality requirements, and maintenance obligations, all while ensuring compliance with Indian contract law and industrial regulations. It protects both parties' interests by clearly defining responsibilities, establishing quality standards, and addressing intellectual property rights. The document is particularly important in industries where tool costs are significant and production quality depends heavily on tool performance.

What sections should be included in a Tooling Agreement?

1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses

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

3. Definitions: Definitions of key terms used throughout the agreement, including technical terms specific to tooling

4. Scope of Agreement: Detailed description of the tools covered and their intended use

5. Ownership and Title: Clear statement of tool ownership, transfer of title if applicable, and intellectual property rights

6. Payment Terms: Payment schedule, amounts, and conditions for tooling costs

7. Delivery and Acceptance: Terms for tool delivery, inspection, and acceptance criteria

8. Quality Requirements: Quality standards, specifications, and testing procedures

9. Maintenance and Storage: Responsibilities for tool maintenance, storage conditions, and preservation

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

11. Confidentiality: Protection of confidential information and trade secrets

12. Liability and Indemnification: Allocation of risks and responsibilities between parties

13. Force Majeure: Provisions for unforeseen circumstances affecting performance

14. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

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

What sections are optional to include in a Tooling Agreement?

1. Insurance: Requirements for insurance coverage when tools are of high value or present significant risks

2. Export Control: Compliance requirements when tools involve international shipping or technology transfer

3. Environmental Compliance: Special provisions for tools involving environmental risks or regulations

4. Tool Life Management: Provisions for end-of-life handling, disposal, or replacement of tools

5. Security Interest: Creation of security interest in tools when payment is made in installments

6. Capacity Requirements: Specific provisions regarding production capacity and tool availability

7. Training and Support: Terms for technical training and support in tool usage

8. Audit Rights: Rights to audit tool usage, maintenance records, and related documentation

What schedules should be included in a Tooling Agreement?

1. Schedule A - Tool Specifications: Detailed technical specifications, drawings, and requirements for each tool

2. Schedule B - Pricing and Payment Schedule: Detailed breakdown of costs, payment milestones, and payment terms

3. Schedule C - Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria

4. Schedule D - Maintenance Requirements: Detailed maintenance procedures, schedules, and responsibilities

5. Schedule E - Delivery Schedule: Timeline for tool development, testing, and delivery milestones

6. Appendix 1 - Technical Drawings: Detailed technical drawings and design specifications

7. Appendix 2 - Safety Procedures: Safety guidelines and procedures for tool operation and maintenance

8. Appendix 3 - Warranty Terms: Detailed warranty terms, conditions, and claim procedures

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

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Automotive

Aerospace

Industrial Equipment

Consumer Electronics

Medical Devices

Defense Manufacturing

Heavy Engineering

Plastics and Molding

Metal Fabrication

Relevant Teams

Legal

Procurement

Manufacturing

Operations

Quality Control

Engineering

Supply Chain

Compliance

Technical Operations

Production

Facilities Management

Relevant Roles

Manufacturing Manager

Procurement Director

Legal Counsel

Operations Manager

Quality Control Manager

Production Engineer

Tool Design Engineer

Supply Chain Manager

Contract Manager

Industrial Engineer

Facilities Manager

Technical Director

Compliance Officer

Project Manager

Chief Operations Officer

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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