The Master Framework Agreement is designed for situations where parties anticipate an ongoing business relationship involving multiple transactions or services over time. It is particularly useful in the Indian business context where companies need a robust legal framework that complies with local laws while maintaining flexibility for future arrangements. This document type streamlines business operations by establishing standard terms upfront, reducing negotiation time for subsequent specific agreements. The agreement typically includes provisions for service orders or statements of work to be issued under its framework, incorporating specific details of each transaction while maintaining consistency with the master terms. It's especially relevant in today's dynamic Indian market where businesses require scalable and efficient contracting solutions that can accommodate growth and changing business needs while ensuring compliance with Indian contract law and regulatory requirements.
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1. Parties: Identification of the contracting parties, including registered addresses and company details
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions and Interpretation: Comprehensive list of defined terms and interpretation rules
4. Structure and Scope: Framework mechanics, relationship with service orders/statements of work
5. Term and Termination: Duration of the agreement, renewal provisions, and termination rights
6. Service Orders and Statements of Work: Process for creating, approving and managing specific service orders
7. Pricing and Payment Terms: General pricing principles, payment terms, invoicing requirements
8. Performance Standards: General service levels and quality standards applicable to all services
9. Warranties and Representations: Standard warranties from both parties regarding capacity, authority, and performance
10. Intellectual Property Rights: Ownership and licensing of IP created or used under the agreement
11. Confidentiality: Protection and handling of confidential information
12. Data Protection and Security: Data handling obligations and security requirements
13. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations
14. Force Majeure: Events excusing performance and related procedures
15. Dispute Resolution: Process for resolving disputes, including escalation procedures
16. General Provisions: Standard boilerplate clauses including notices, assignment, amendments
1. Compliance with Laws: Detailed compliance obligations when dealing with regulated industries or specific regulatory requirements
2. Insurance: Specific insurance requirements when services involve higher risks or regulatory requirements
3. Parent Company Guarantee: When financial security is required from a parent company
4. Anti-Corruption and Sanctions: For international agreements or when dealing with government entities
5. Business Continuity: When services are critical to business operations
6. Environmental and Social Responsibility: When sustainability and social responsibility are key concerns
7. Personnel and Key Personnel: When specific individuals are critical to service delivery
8. Transition and Exit: Detailed exit provisions when service transition is complex
9. Audit Rights: When regular monitoring of performance or compliance is required
10. Currency and Exchange Rate: For international agreements involving multiple currencies
1. Schedule 1 - Service Categories: List and description of service categories covered under the framework
2. Schedule 2 - Pricing Matrix: Standard rates, pricing mechanisms, and cost calculations
3. Schedule 3 - Service Level Agreement: Detailed service levels, measurement criteria, and remedies
4. Schedule 4 - Governance Structure: Management structure, meeting schedules, escalation procedures
5. Schedule 5 - Standard Form Service Order: Template for individual service orders or statements of work
6. Schedule 6 - Technical Standards: Technical specifications and standards applicable to services
7. Schedule 7 - Security Requirements: Detailed security protocols and requirements
8. Schedule 8 - Change Control Procedure: Process for implementing changes to services or agreement terms
9. Schedule 9 - Key Personnel: List of key personnel and their roles
10. Schedule 10 - Approved Subcontractors: List of pre-approved subcontractors if applicable
11. Appendix A - Contact Details: Contact information for key personnel and authorized representatives
12. Appendix B - Required Insurance Coverage: Detailed insurance requirements and minimum coverage levels
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