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A Supply of goods agreement sets out the terms between a seller who provides products and a buyer who purchases them regularly. In India, these contracts typically detail essential elements like product specifications, pricing, delivery schedules, and quality standards under the Sale of Goods Act, 1930.

The agreement protects both parties by clearly defining payment terms, handling of defective goods, and liability limits. Many Indian businesses use these agreements for ongoing commercial relationships, especially in manufacturing, retail, and distribution sectors. They help prevent disputes and ensure smooth business operations by establishing clear expectations and remedies.

Use a Supply of goods agreement anytime you need regular product deliveries from a supplier over time. This agreement becomes essential when ordering critical raw materials, retail inventory, or manufacturing components—especially when dealing with values above ₹5,000 under Indian contract law.

The agreement proves particularly valuable for businesses needing specific quality standards, fixed pricing, or guaranteed delivery schedules. It helps prevent supply chain disruptions and protects your interests if problems arise with product quality or delayed shipments. Many Indian manufacturers and retailers create these agreements before starting new supplier relationships or when scaling up existing ones.

• Fixed-term agreements: Set specific durations and quantities, common in retail and manufacturing sectors
• Open-ended agreements: Allow flexible ordering with minimum purchase commitments, ideal for ongoing supplier relationships
• Exclusive supply agreements: Grant sole supplier status with territorial restrictions under Indian competition law
• Framework agreements: Establish general terms while allowing for specific purchase orders, popular among large enterprises
• Industry-specific agreements: Contain specialized terms for sectors like pharmaceuticals, food products, or automotive parts

• Manufacturers and Suppliers: Provide goods according to specifications, maintain quality standards, and ensure timely delivery
• Business Buyers: Purchase goods regularly, set requirements, and manage supplier relationships across their supply chain
• Legal Teams: Draft and review agreements, ensure compliance with Indian contract law, and protect client interests
• Procurement Officers: Negotiate terms, monitor performance, and manage supplier relationships
• Quality Control Teams: Verify product specifications and maintain compliance with agreed standards
• Finance Departments: Handle payments, track deliveries, and manage financial obligations under the agreement

• Basic Details: Gather complete company information, GST numbers, and registered addresses of both parties
• Product Specifics: Document exact specifications, quantities, quality standards, and packaging requirements
• Delivery Terms: Define delivery schedules, locations, transportation responsibilities, and Incoterms
• Payment Structure: Outline pricing, payment terms, credit periods, and applicable taxes
• Quality Control: Specify inspection procedures, rejection criteria, and warranty terms
• Risk Management: Include force majeure clauses, liability limits, and dispute resolution mechanisms under Indian law
• Template Selection: Use our platform's customizable templates to ensure all mandatory elements are included correctly

• Party Details: Full legal names, addresses, and GST registration numbers of supplier and buyer
• Product Description: Detailed specifications, quantities, and quality standards as per Indian Standards
• Commercial Terms: Pricing, payment schedules, delivery terms, and tax obligations
• Quality Control: Inspection rights, acceptance criteria, and warranty provisions
• Risk Allocation: Liability limits, indemnification, and force majeure clauses
• Dispute Resolution: Jurisdiction, governing law, and arbitration procedures under Indian law
• Termination Rights: Conditions for ending the agreement and post-termination obligations
• Signatures: Authorized signatory details and execution requirements per Indian Contract Act

A Supply of goods agreement is often confused with a Supply of services agreement, but they serve distinctly different purposes under Indian contract law. While both involve commercial relationships, their core elements and legal requirements differ significantly.

• Nature of Delivery: Goods agreements focus on tangible products with clear specifications and quality standards, while service agreements cover intangible deliverables and performance metrics
• Transfer of Property: Goods agreements involve actual transfer of ownership under the Sale of Goods Act, whereas service agreements don't transfer property rights
• Quality Assessment: Product quality can be measured against physical specifications in goods agreements, while service quality often requires more subjective performance indicators
• Warranty Terms: Goods agreements include product warranties and defect remedies, while service agreements focus on performance guarantees and service levels