Business Agreement Format in India — Templates Download
A Business Agreement is a written contract between two or more commercial parties setting out the terms of their business relationship — whether for franchising, consultancy, distribution, software development, technology transfer, catering, or sale of a business. In India, business agreements are enforceable as contracts under the Indian Contract Act, 1872 read with sector-specific laws. Whether you are a founder, MSME, freelancer, or corporate, download 20+ Business Agreement formats covering every major B2B commercial need.
What is Business Agreement ?
A Business Agreement is a written commercial contract by which two or more parties agree on the terms of a business arrangement — services, supply, distribution, franchising, technology transfer, joint working, or sale of an enterprise. It establishes binding rights and obligations, allocates risk, and provides remedies for breach.
The general law governing business agreements is the Indian Contract Act, 1872. Under Section 10 of the Act, all agreements are contracts if they are made by competent parties for a lawful consideration and lawful object, with free consent and not expressly declared void. Section 23 sets out what constitutes a lawful consideration and object.
Specific business agreements draw additional governance from sector-specific statutes. Franchise agreements are governed by the Indian Contract Act, 1872 combined with the Trade Marks Act, 1999, the Copyright Act, 1957, the Foreign Exchange Management Act, 1999 (for cross-border franchising), and the Income Tax Act, 1961. Software and IT services agreements rely on the Information Technology Act, 2000 and the Indian Copyright Act, 1957. Sole selling agency agreements historically involved Section 294 of the Companies Act, 1956, although this provision is not retained in the Companies Act, 2013, and is now governed primarily by contract.
Confidentiality (NDA) agreements rely on the Indian Contract Act, 1872 and tort law. All business agreements are admissible as documentary evidence under the Bharatiya Sakshya Adhiniyam, 2023.
When This Format Required?
Engaging service providers or consultants — software developers, IT consultants, freelancers, advisors, and independent contractors with defined deliverables and IP ownership.
Granting franchise or distribution rights — when a brand owner appoints a franchisee, sole selling agent, or distributor for a defined territory.
Transferring a business or know-how — sale of a going concern, transfer of rights, supply of technical know-how, or technology licensing.
Pre-deal negotiations — executing NDAs and MOUs before sharing confidential information or finalising a transaction.
Hiring key employees — employee service agreements, agreements with probation, and agreements with bonded training.
Specialised arrangements — catering, business centre operations, tripartite leases, and recruitment of crew under shipping company appointments.
All Templates — Download Free
- Agreement Between Independent Contractor And Service ProviderDownload
- Agreement For Appointment Of Sole Selling Agent By Manufacturing CompanyDownload
- Agreement For Business CentreDownload
- Agreement For CateringDownload
- Agreement For Development Of PortalDownload
- Agreement For Transfer Of RightDownload
- Agreement To Sell BusinessDownload
- Agreement To Supply Technical KnowDownload
- Application Pro Forma For Approval Of Hotel ProjectsDownload
- Appointment By Shipping Company Of Agent For Recruitment Of PersonnelDownload
Quick Overview
Step-by-Step Guide
- 1
Title, Parties, and Recitals
Use a clear heading describing the agreement — for example, "Franchise Agreement", "Consultancy Agreement", or "Memorandum of Understanding". State the full name, registered office, CIN/PAN, authorised signatory, and capacity of each party. Add recitals describing the background, purpose, and intent.
- 2
Definitions and Interpretation
Include a precise definitions clause for technical terms, intellectual property, deliverables, territory, fees, confidential information, and force majeure events. Add a standard interpretation clause.
- 3
Scope of Work / Rights Granted
Set out the precise scope — the services to be rendered, the products to be sold, the territory granted, the rights licensed, or the business being transferred. Include schedules for service levels, deliverables, milestones, and pricing.
- 4
Consideration, Payment Terms, and Tax
Detail the consideration — fixed fees, royalties, equity, or commission. State payment schedule, mode, GST applicability, TDS, invoicing, late payment interest, and currency. For cross-border agreements, refer to FEMA, 1999 compliance.
- 5
Confidentiality, IP, Indemnity, and Termination
Add clauses on confidentiality (during and after term), intellectual property ownership (work-for-hire under Section 17 of the Copyright Act, 1957), indemnity, limitation of liability, non-compete (within reasonable limits), force majeure, and termination grounds with notice period.
- 6
Dispute Resolution, Stamping, and Signatures
Add arbitration clause under the Arbitration and Conciliation Act, 1996, governing law and jurisdiction. Execute on non-judicial stamp paper of the value prescribed under the applicable State Stamp Act. Both parties sign every page before two witnesses.
Types of Business Agreement
Franchise Agreement
Records the grant of brand, trademark, and operational rights by a franchisor to a franchisee under the Indian Contract Act, 1872 and Trade Marks Act, 1999.
Consultancy & Professional Services Agreement
Used for engaging consultants, advisors, software professionals, and television network specialists with defined deliverables, fees, and confidentiality.
Sole Selling Agent / Distribution Agreement
Appoints a sole selling agent, distributor, or representative for sale of a manufacturer's products in a specified territory under contract principles.
Software, IT & Portal Development Agreement
Governs software development, SaaS, IT consultancy, and portal development under the Information Technology Act, 2000 and Copyright Act, 1957.
Confidentiality (NDA) & Memorandum of Understanding
Pre-deal NDAs to protect confidential information and MOUs setting out the framework of a proposed transaction or strategic relationship.
Business Sale, Catering & Specialised Agreements
Agreements for sale of business and goodwill, catering services, business centre operations, technical know-how transfer, and tripartite lease arrangements.
Disclaimer: This template is provided for general informational and drafting reference purposes only. It does not constitute legal advice. Stamp duty, registration, and procedural requirements may vary by state. Consult a qualified advocate before executing or filing any legal document. For more details, see our Disclaimer.