Petroleum Product Supply Agreement Template for India

The Petroleum Product Supply Agreement is a critical commercial document used in India's petroleum sector to establish and govern the relationship between suppliers and buyers of petroleum products. This agreement is essential when parties seek to establish a formal, long-term arrangement for the regular supply of petroleum products, whether for industrial use, retail distribution, or commercial operations. The document addresses key aspects such as product specifications, delivery terms, pricing mechanisms, and quality control measures, while ensuring compliance with Indian regulatory requirements, including the Petroleum Act, 1934, Petroleum Rules, 2002, and various environmental and safety regulations. The agreement is particularly important given India's regulated petroleum sector and the need for strict quality and safety standards in petroleum product handling and distribution.

1. Parties: Identification of the supplier and buyer, including their registered addresses and company details

2. Background: Context of the agreement, including any relevant history of business relationship and purpose of the agreement

3. Definitions: Detailed definitions of technical terms, industry-specific terminology, and contract-specific phrases

4. Supply Obligations: Core obligations of the supplier regarding product delivery, quantities, and timing

5. Product Specifications: Detailed quality requirements and standards for the petroleum products

6. Ordering and Delivery: Procedures for placing orders, delivery schedules, and logistics arrangements

7. Price and Payment: Pricing structure, payment terms, invoicing procedures, and price adjustment mechanisms

8. Quality Control: Testing procedures, quality assurance measures, and rejection protocols

9. Title and Risk: Transfer of ownership and risk in the products

10. Compliance with Laws: Obligations regarding regulatory compliance, permits, and licenses

11. Health, Safety and Environment: HSE requirements and standards for handling petroleum products

12. Insurance and Liability: Insurance requirements and allocation of liability between parties

13. Force Majeure: Events constituting force majeure and consequent rights and obligations

14. Term and Termination: Duration of agreement, renewal provisions, and termination rights

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

16. Confidentiality: Protection of confidential information and trade secrets

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment