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About this template
What is this template?
This is an exclusive cross-border supply contract specifically designed for the trade of Uninterruptible Power Supply units. It contains a specialized technical exchange clause regarding patent applications and a requirement for a US Dollar minimum purchase volume. It is not a franchise agreement or a simple one-off sale of goods contract.
When should you use it?
Use this when a manufacturer wants to grant a single company the sole rights to sell specific electronic hardware in India. Use a Non-Exclusive Distribution Agreement if the manufacturer intends to appoint multiple competing sellers in the same region.
What's inside
| Clause | Name | What it does |
|---|---|---|
| Article 3 | Territory | Confines the scope of the agreement exclusively to the entire territory of India. |
| Article 4 | Products | Limits the subject matter of the agreement specifically to Uninterruptible Power Supply (UPS) units. |
| Article 6 | Technical Improvement and Patent Application | Requires both parties to share technical inventions related to the Products free of charge during the term. |
| Article 7 | After-Sales Service | Obliges the Seller to provide a one-year full guarantee from the shipping date and replace faulty units with new PCBs. |
| Article 8 | Exclusive Right | Prohibits the Distributor from dealing in competitive products and prevents the Seller from exporting through other Indian channels. |
| Article 9 | Minimum Purchase | Mandates that the Distributor purchase a specific value of Products, denominated in US Dollars, during each 12-month period. |
| Article 11 | Payment | Specifies payment via irrevocable letter of credit within 7 days of order confirmation or telegraphic transfer 7 days prior to shipment. |
| Article 15 | Duration | Sets an initial term of one year with a requirement for consultation on renewal three months before expiration. |
| Article 21 | Governing Law & Arbitration | Applies Indian law to the contract while requiring disputes to be settled by arbitration in London. |
Who it's for
- a Taiwanese manufacturer exporting Uninterruptible Power Supply units to the Indian market
- an Indian company registered under the Companies Act 1956 seeking exclusive distribution rights
- parties requiring London-based arbitration for a cross-border trade agreement
- entities establishing a one-year renewable supply relationship with minimum purchase quotas
How long it runs and how it's signed
Law it's drafted under
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