Document background
The Master Covenant and Agreement is designed for situations where parties intend to establish a long-term business relationship requiring a comprehensive governance framework. This document type is particularly relevant in the Indian business context, where it needs to comply with various regulations including the Indian Contract Act, 1872, and other relevant statutes. It serves as an umbrella agreement that sets out the fundamental principles, obligations, and operational procedures that will govern future transactions or specific agreements between the parties. The document typically includes detailed provisions on risk allocation, compliance requirements, dispute resolution mechanisms, and operational procedures, while maintaining flexibility to accommodate various business scenarios. It's especially useful for complex business relationships where multiple transactions or agreements are anticipated over time, providing a consistent framework that reduces the need to negotiate standard terms repeatedly.
