Document background
The Market Development Agreement is a critical commercial contract used when a company (principal) wishes to expand its market presence in specific territories through the expertise of a professional market developer or agent. This document, governed by Indian law, is particularly relevant in the Indian business context where companies often rely on local expertise for market penetration and growth. The agreement typically includes detailed provisions for market development activities, performance targets, commission structures, and compliance requirements under Indian legislation. It's especially important for foreign companies entering the Indian market or Indian companies expanding into new domestic territories, as it provides a clear framework for the relationship while ensuring compliance with local regulations including the Indian Contract Act, Competition Act, and relevant industry-specific regulations.
