Most of the disputes we see in arbitration and commercial courts could have been avoided, or made far simpler, by a better contract. Payment terms that do not say when money is due. Acceptance clauses that let the buyer reject goods months later. Termination clauses with no notice period. Liability caps that one side never noticed. Dispute clauses that point to two different courts.
This page is for business owners, founders and in-house teams who want contracts that work on the bad day, not just the signing day. We draft and review supply agreements, service agreements, distribution and franchise agreements, vendor contracts, consultancy and retainer agreements, licences and NDAs. Because we spend our working lives arguing about these clauses, we know which words matter.
A good contract does not need to be long. It needs to be clear about who does what, when, for how much, what happens if it goes wrong, and where any dispute will be decided.
हिंदी में सारांश
हम आर्बिट्रेशन और कमर्शियल कोर्ट में जिन विवादों को देखते हैं, उनमें से ज़्यादातर बेहतर अनुबंध से टल सकते थे या आसान हो सकते थे। भुगतान की तारीख़ साफ़ न होना, ख़रीदार को महीनों बाद माल लौटाने की छूट, टर्मिनेशन का नोटिस पीरियड न होना या विवाद क्लॉज़ में दो अलग अदालतें होना आम समस्याएँ हैं। हम सप्लाई, सर्विस, डिस्ट्रीब्यूशन, फ़्रैंचाइज़ी, वेंडर, कंसल्टेंसी और लाइसेंस समझौते तैयार और जाँचते हैं। अच्छा अनुबंध लंबा होना ज़रूरी नहीं, बल्कि साफ़ होना चाहिए कि कौन क्या करेगा, कब, कितने में, और विवाद कहाँ तय होगा।
Is this your situation?
- You are about to sign a contract prepared by the other side
- You use standard terms that have not been reviewed in years
- You are entering a new type of business relationship, such as distribution or licensing
- Your past disputes came from unclear payment or acceptance terms
- A large customer has sent a vendor agreement with heavy penalties and indemnities
- You need an NDA before sharing confidential information
- You want your contracts to have a dispute clause that actually works
The clauses that decide disputes
Payment
When payment is due, how invoices are raised and approved, interest on late payment, and the right to stop work if unpaid.
Delivery and acceptance
What counts as delivery, how long the buyer has to inspect and reject, and deemed acceptance if no complaint is raised.
Liability and indemnity
Caps on liability, exclusions of indirect loss, and indemnities limited to what is fair and insurable.
Termination
Rights to terminate for breach and for convenience, notice and cure periods, and what happens to orders in progress.
Confidentiality and IP
Who owns what is created, and what can be used after the relationship ends.
Disputes
A clear arbitration clause with a seat and institution, or a jurisdiction clause, and a short escalation step.
Reviewing a contract the other side has drafted
When a larger customer or partner sends you its standard agreement, it is drafted to protect them. That does not mean you cannot sign it, but you should know what you are agreeing to, and push back on the terms that matter most.
Look first at payment: long credit periods (60, 90 or 120 days), payment only after the customer's own customer pays, and set-off rights that let the customer deduct disputed amounts from any invoice. Then look at liability: unlimited indemnities for any loss "arising from" your services, liquidated damages for delay with no cap, and warranties that last for years. Then termination: the customer's right to end the contract at any time without paying for work in progress, and your inability to terminate for non-payment.
Finally, look at the dispute clause. Large companies often specify arbitration seated in their own city, before an arbitrator they appoint. After the Supreme Court's decisions in Perkins Eastman (2019) and CORE (2024), one-sided appointment clauses are unenforceable as written, but it is still better to negotiate a neutral clause at the start. If you are a registered micro or small enterprise, remember that the MSMED Act's 45-day payment rule and Facilitation Council route apply regardless of the contract.
We give you a short note of the key risks, with suggested changes ranked by importance, so you can negotiate the points that matter and accept the rest.
How we draft or review
Understand the deal
A short call to understand the business, the parties, the money, the timeline and what worries you.
Review or draft
For a review, we mark up the draft with comments and changes. For a new contract, we prepare a first draft based on the deal terms.
Explain the risks
A plain-language note on the key clauses and risks, with our suggested position on each.
Support negotiation
We revise the draft as negotiations progress, and can join calls with the other side where useful.
Finalise and execute
A clean final version, with guidance on signing, stamping and storing the contract.
Keep it working
Templates and checklists for your team to use for similar deals in future.
Time and typical cost range
Our fees are agreed in writing at the start.
| Work | Usual time | Cost |
|---|---|---|
| Review of a short agreement or NDA | 1 to 2 working days | Fixed fee |
| Review of a standard commercial agreement | 2 to 5 working days | Fixed fee by length |
| Drafting a new agreement | 3 to 7 working days | Fixed fee |
| Standard terms of business | 1 to 2 weeks | Fixed fee |
| Ongoing support | Monthly | Corporate retainer |
What we need from you
The deal
- A short note of the commercial terms agreed
- Any term sheet, quotation or email summary
- The other side's draft, if any
The parties
- Legal names, addresses and registration details
- Who will sign and their authority
- GST and MSME registration details
Your concerns
- Problems faced in past similar deals
- Key risks you want covered
- Any deadlines for signing
Common contracts and the issues that matter
| Contract | Key issues |
|---|---|
| Supply agreement | Specifications, delivery, inspection, rejection, price variation, payment terms |
| Service agreement | Scope, service levels, acceptance, change requests, payment milestones |
| Distribution or dealership | Territory, exclusivity, targets, termination, stock buy-back, deposit refund |
| Franchise | Fees, brand use, training, audit, termination, post-term restrictions |
| Vendor agreement (with large company) | Payment period, set-off, indemnity, liability cap, termination |
| NDA | Definition of confidential information, permitted use, duration, return of material |
Stamp duty, signing and electronic contracts
A contract that is not properly stamped can cause problems when you need to rely on it. In most states, commercial agreements attract stamp duty under the state Stamp Act, and an unstamped or under-stamped document may not be admitted in evidence until the duty and penalty are paid. The Supreme Court's seven-judge decision in In re Interplay (2023) held that an unstamped arbitration agreement is not void and that the arbitrator decides stamping issues, but the duty still has to be paid at some point, often with a penalty. Stamp contracts properly when they are signed.
Make sure the person signing has authority. For a company, that means a board resolution or a properly delegated power. For a partnership, a partner acting in the ordinary course of business. If authority is doubtful, ask for a copy of the resolution.
Electronic contracts are valid under the Information Technology Act, 2000, and Section 7(4)(b) of the Arbitration Act recognises arbitration agreements formed by electronic communication. E-signatures through Aadhaar-based or other approved methods are valid for most commercial agreements. Keep a reliable record of the final signed version and the email trail.
Clauses that save money in a dispute
Some clauses are cheap to include and very valuable later. A clause requiring the buyer to raise quality complaints in writing within a fixed number of days, failing which the goods are deemed accepted, defeats many late "quality" defences. A clause stating the interest rate on late payment removes argument about interest. A clause requiring a statement of account to be confirmed or disputed within a fixed time helps with limitation and admissions.
A clause specifying how notices are to be given, with email addresses, avoids arguments about service. A clear order of precedence between the main agreement, purchase orders and annexures prevents conflicts. And a well-drafted arbitration clause, or a jurisdiction clause if you prefer courts, decides where and how fast any dispute will be resolved.
Laws that apply
Formation, validity, performance, breach and remedies.
Delivery, acceptance, rejection and implied conditions in sale of goods.
When contracts can be specifically enforced.
Validity of electronic records and signatures.
Stamp duty on agreements and consequences of non-payment.
A vendor agreement that changed on review
Here's a made-up example. A Gurugram IT services company of 40 people was offered a two-year contract by a large retail group, on the retailer's standard vendor agreement. The agreement provided for payment 90 days after the retailer's acceptance of each deliverable, with no deadline for acceptance; an uncapped indemnity for "any loss whatsoever"; termination by the retailer at any time on 7 days' notice without payment for work in progress; and arbitration in Mumbai before an arbitrator appointed by the retailer's legal head.
We reviewed it in two days and gave the company a one-page note ranking the risks. The company negotiated: deemed acceptance if no written rejection within 15 days, payment within 45 days of acceptance, a liability cap equal to twelve months' fees with carve-outs for wilful misconduct, payment for work done on termination, and arbitration under the rules of an institution seated in New Delhi. The retailer accepted most changes.
A year later, the retailer delayed payment on three deliverables. The deemed acceptance clause and 45-day term made the claim simple, and it was paid after a single notice.
How we work
We are a litigation and advisory practice led by Advocate BK Singh, with offices in Dwarka (New Delhi) and Vaishali (Ghaziabad). This is what you can expect:
- Drafted by dispute lawyers: we know how clauses are argued.
- Plain-language notes: you understand what you are signing.
- Prioritised changes: what to push for, and what to accept.
- Fast turnaround: most reviews within a few working days.
- Written fee terms: fixed fees agreed in advance.
Contract mistakes we see in disputes
- No clear due date for payment
- No time limit for the buyer to reject goods
- Uncapped liability or indemnity
- Termination without notice or payment for work done
- Conflicting dispute and jurisdiction clauses
- Unstamped agreements and unclear signing authority
Standard terms of business: one document, every order
Many small and medium businesses trade on purchase orders and invoices with no signed contract at all. The terms printed on the back of a quotation or invoice can become the contract, if the customer accepts them. In practice, there is often a "battle of the forms": the buyer's purchase order says one thing, the seller's invoice says another, and nobody can say which terms apply.
A short, well-drafted set of standard terms of business, sent with every quotation and referred to in every invoice, solves much of this. It should cover payment terms and interest, delivery and risk, inspection and rejection periods, limitation of liability, retention of title until payment, and the dispute clause. Ask customers to acknowledge the terms once, for example in a credit application form, so that they apply to all future orders.
Retention of title clauses, saying that ownership of goods passes only when they are paid for, give some protection if a buyer becomes insolvent, though their effect depends on whether the goods are still identifiable. They cost nothing to include.
Contracts with government and large buyers
Government departments and large companies often do not negotiate their standard terms. Tender conditions are usually take-it-or-leave-it. Even so, a careful review before bidding helps you price the risk correctly: liquidated damages, performance guarantees, payment cycles and termination rights all have a cost. If a term is unusual or unclear, the pre-bid query process is the place to raise it; answers given in pre-bid meetings often become part of the contract.
For large private buyers, negotiation is often possible on a few key points, especially payment terms, liability caps and termination for convenience. Present your requested changes as a short, reasonable list rather than a heavily marked-up draft. Buyers that refuse all changes are telling you something about how disputes will be handled.
Keeping contracts useful after signing
A contract is only useful if people follow it. Many disputes arise because the sales or operations team never read the contract and agreed changes informally by WhatsApp or phone. Give your team a one-page summary of each key contract: payment terms, notice requirements, renewal dates, and what to do if something goes wrong. Record variations in writing, even by email, and keep a central copy of each signed contract with its amendments.
Diary key dates: renewal and termination notice windows, guarantee expiry, price revision dates and warranty periods. Missing a renewal notice can lock you into a contract for another year, and missing a guarantee expiry can leave you without security.
Payment clauses that actually get you paid
A payment clause should say exactly when each amount becomes due, not just "within 30 days". Due from what: the invoice date, delivery, acceptance, or a milestone certificate? What if the buyer does not issue the certificate? A good clause fixes a long-stop: payment is due within 30 days of the invoice, and the invoice may be raised on delivery, or on completion of the milestone, or if the buyer fails to certify within seven days.
Add interest on late payment at a stated rate, and a right to suspend work or deliveries after a stated period of non-payment, with notice. If you are an MSME supplier, the MSMED Act's 45-day cap and statutory interest apply anyway, but stating them in the contract avoids argument. If you are a buyer, make sure your terms comply with Section 15 for MSME suppliers, because longer terms do not bind them and carry tax consequences.
Limitation of liability and indemnity
Liability clauses are where large customers most often overreach. A fair clause caps each party's total liability, often at the fees paid or payable in the previous twelve months, excludes indirect and consequential loss, and carves out from the cap only a few serious matters, such as fraud, wilful misconduct, breach of confidentiality, and personal injury. An indemnity should cover specific risks, such as third-party IP claims or breach of law, not "any loss arising out of" the contract.
If the other side insists on unlimited liability or broad indemnities, ask what insurance it expects you to carry and price the risk accordingly. Courts generally enforce negotiated liability caps between businesses, so what you agree is what you get when things go wrong.
Termination and what survives
Termination clauses should cover termination for breach (with notice and a cure period), termination for insolvency, and, where commercially acceptable, termination for convenience with a notice period. They should say what happens on termination: payment for work done and goods delivered, return of materials and confidential information, transition assistance, and release of guarantees.
They should also say which clauses survive termination: confidentiality, payment of amounts accrued, limitation of liability, and the dispute resolution clause. Under Section 16 of the Arbitration Act, the arbitration clause survives anyway, but stating it avoids argument.
Frequently Asked Questions
Do I need a lawyer to review a contract?
For significant contracts, yes. A short review can identify risks you can negotiate before signing.
How long does a contract review take?
Usually one to five working days, depending on length and urgency.
Can I negotiate a large company's standard agreement?
Often yes, on key terms like payment, liability and termination. We help you prioritise.
Is an email agreement a valid contract?
Yes, if the terms and acceptance are clear. A signed document is still better for important deals.
Do contracts need to be stamped?
Most commercial agreements attract stamp duty under state law. Unstamped contracts can face problems in evidence.
What is a liability cap?
A clause limiting the maximum amount one party can be liable for. It is common and usually enforceable between businesses.
Should my contract have an arbitration clause?
Often yes, for business contracts. It should name a seat and institution or a neutral appointment method.
Can I use a template from the internet?
Templates rarely fit your deal and often contain problems. They are a starting point at best.
What if the other side refuses all changes?
Then you decide whether the deal is worth the risk. Our note helps you make that decision knowingly.
Can you draft contracts in Hindi?
We can prepare bilingual contracts where needed, with a clause stating which version prevails.
Do you draft for startups?
Yes. See startup legal services for founder and investor documents.
What does contract drafting cost?
A fixed fee depending on the type and length of contract, agreed in advance.
Signing something important?
Send us the draft and a short note of the deal. We will tell you what to change and why, in plain language.
This page gives general information about arbitration and dispute law in India as it stood when it was last reviewed. It is not legal advice on your case and does not promise any result. Time limits, fees and court rules change, and the right step depends on your own contract, dates and documents, so take advice before acting.
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