Supply contract with Indiа
India is one of the world leaders in trade turnover. Quite a lot of countries supply goods to or from India.
However, no delivery of goods can take place without the main legal document – a contract for the supply of goods. This document shows the rights and obligations of the parties and shows how the parties will resolve the dispute. Therefore, the contract for the delivery of goods is very important.
We offer you an article about an international contract for the supply of goods, and can also help in its preparation or examination.
This is the contract:
- Is universal for all countries from any continent;
- We can choose the international delivery rules Incoterms 2000;
Expertise of the supply contract with India
You can draw up a supply contract from the very beginning, but you can also get a draft supply contract from a counterparty from India. At this stage there are several legal and economic risks.
That is why we can offer you a legal examination of the draft contract. What does it include?
- Legal analysis of the counterparty and the draft contract;
- Searching for legal risks and making proposals for correction;
- Drawing up a legal opinion, preparing a revised draft contract.
Basic principles of an international supply contract with India
In 2024, we can note several conditions for an international contract for the supply of goods.
Firstly, the contract must be in writing. We remember that a contract is both the legal basis of economic relations and evidence in the event of a dispute.
Secondly, the contract must contain essential terms. If the parties agree to these terms, then the contract is considered concluded.
Thirdly, counterparties choose the applicable law (for example, Incoterms 2000), the procedure for resolving the dispute and the court.
At the end, counterparties must read the terms of the contract and sign it. Only authorized persons can sign the contract and they must be verified.
Universal terms and conditions of the supply contract with India
1.1 Subject of the contract and delivery dates
The subject of the contract is what one party will supply to the other. The parties must agree on this.
For example: Under a supply contract, “Organization from India” is obliged to supply goods to “Organization from Kyrgyzstan”, and “Organization from Kyrgyzstan” is obliged to pay for the delivered goods.
Next, it is necessary to describe in detail what exactly one party supplies to the other. there is a description of the product. This can be the name, weight, volume of the product.
It is also necessary to note the country of origin, including links to international or national standards for the specified product, the name of the packaging according to international classifiers, requirements for labeling of the product, its volume, weight or number of pieces, cargo volume, weight with and without packaging.
If the product is fragile, then we write about it so that no one damages it during transportation. If the product is complex, for example a car, then we describe all its characteristics and details.
It is necessary to check whether any sanctions have been established for the product. Some types of goods cannot be imported into a country according to the laws of that country, or vice versa, exported.
The parties must then agree on a time frame for delivery of the goods. The contract can specify a date, and you can specify during what period the goods can be delivered. The parties choose the most convenient option for themselves. As a rule, it depends on the location of the goods and the type of transportation.
1.2. Delivery price of goods
The parties must agree on the price of the goods. That is, how much the product will be purchased for. It is necessary to indicate the price per unit of goods, currency, payment option for goods (prepayment, payment by parts, payment after delivery).
The parties can also choose the procedure for paying for the goods. For example, which bank will they work through.
1.3. Applicable right. Incoterms 2000
The choice of law is a feature of an international contract for the supply of goods with India. Contractors have a question: choose the national law of one of the parties to the contract or choose the rules of Incoterms.
Incoterms are universal international rules for the delivery of goods. They are used by most international partners. The rules have several years: 1990, 2000, 2020, the parties can choose any one and indicate this in the contract.
Incoterms rules reflect the distribution between the seller and the buyer of responsibilities and financial costs, such as: transportation of goods, their loading and unloading from a vehicle, customs clearance, payment of taxes, duties and fees, insurance, as well as the transfer of risks of loss and damage to goods.
Incoterms rules are abbreviations. To apply them, you need to write the abbreviation in the contract. Let’s look at an example.
CIP Incoterms 2020 – “Carriage and Insurance Paid to”.
The seller is obliged to: complete export customs clearance, insure and deliver the goods to the agreed destination.
The buyer is obliged to: unload the goods and perform import customs clearance. Risks pass at the moment the seller transfers the goods to the carrier.
Incoterms have quite a lot of such abbreviations, the parties can choose any convenient one.
More than 100 countries recognize Incoterms, but they are short, and the parties immediately understand their responsibilities.
1.4. Pre-trial settlement and choice of court in a supply contract with India
The parties choose the procedure for resolving disputes regarding the delivery of goods. It should be noted that the parties can resolve the dispute pre-trial, send claims demanding to fulfill obligations under the contract.
The parties must also choose a court to hear their dispute. The feature of an international contract for the supply of goods is that the parties have several options for choosing a court.
State Court:
- Cheaper than commercial arbitration:
- Has more formalities;
- Longer trial times.
International Arbitration:
- More expensive than state court;
- The parties choose the arbitrator, law, language and venue;
- There are accelerated procedures with short deadlines;
- Solutions are recognized in more than 170 countries.
To choose a court, you must write this in the contract or enter into an additional agreement.
1.5. Responsibility of the parties to the contract
The legal responsibility of the parties is a measure that disciplines the parties to the contract, since everything must be done correctly and on time.
The parties may agree on the following types of responsibilities:
- Compensation for losses;
- Fine, penalty, penalty,
- Product repair guarantee.
In the contract, responsibility can be written as follows: For late delivery of goods, the seller must pay a fine of 15% of the amount of the goods.
There are also cases of force majeure. In such situations, the parties are released from responsibility, since force majeure does not depend on the will of the parties.
The contract can indicate that in the event of force majeure, the parties are exempt from liability.
1.6. Forwarder and quality certificate
The services of a forwarder are quite useful for the parties. They make the task of delivering goods easier. The forwarder is involved in selecting an organization for transportation, preparing documents, studying routes, and so on.
The parties to the contract can choose the freight forwarder and specify it in the contract.
Often goods are shipped in large quantities under a goods supply agreement. For example, supply of office supplies. In this case, the parties can agree on an organization that will assess the quantity and quality of the goods upon when receiving the goods.
The result of the quality check will be a certificate of quality and quantity of the goods.
1.7. Details of the parties
At the end of the contract, the details of the parties are indicated. This is the name of the organization, address, tax number of the companies.
Also, do not forget to indicate the contract number, date of signing and place of signing.
Conclusion
Of course, a contract for the supply of goods with India is one of the most popular economic relations in the world. It is worth remembering that, regardless of the parties to the contract, the universal rules for drawing up a contract, which we discussed in the article, can be applied.
Our law firm can help you draw up such a contract.
Our advantages:
- we work online, all work is done online, you send technical specifications,
- We conclude an agreement online (exchange scanned copies), pay the check.
- we have extensive experience in international private law;
- We will study situations and documents;
- we will develop a foreign trade contract;
- we will send a report to the client;
- We will translate into foreign languages if necessary.