


A contract that is commercially precise and legally sound does not merely document an agreement — it prevents disputes, allocates risk, and forms the foundation for every business relationship built on top of it.
OUR COMMERCIAL CONTRACTS SERVICES
India’s commercial contracts are governed principally by the Indian Contract Act 1872 and the Specific Relief Act 1963, supplemented by sector-specific statutes and, for cross-border arrangements, principles of private international law and foreign exchange laws if the agreement involves investment within or outside India. These instruments define the framework within which every commercial contract in India operates — from offer and acceptance through to remedies for breach. Our commercial contracts practice covers the full transaction spectrum: from standard vendor agreements for domestic operations to complex cross-border joint venture structures serving international markets.
Every business relationship requires a contractual foundation tailored to the specific transaction — not adapted from a generic template. ATB Legal drafts and reviews agreements across all categories of commercial transaction, ensuring obligations are clearly defined, risk allocation is commercially appropriate, termination provisions are enforceable, and dispute resolution mechanisms are suited to the parties and subject matter. Major Contract types handled include supply and procurement agreements, distribution and agency agreements, manufacturing and outsourcing arrangements, retainership and service agreements, franchise agreements, non-disclosure and confidentiality agreements, and general commercial agreements across sectors from technology to consumer goods.
Where two or more parties hold equity in the same company, the shareholders agreement governs their relationship — covering reserved matters, board composition, transfer restrictions, drag-along and tag-along rights, pre-emption, exit mechanisms, and deadlock resolution. Without a tailored shareholders agreement (SHA), the Companies Act 2013’s default provisions apply, which rarely reflect the commercial agreement between the parties and in many cases, even the provisions of Companies Act, 2013 are silent, which gives rise to disputes between the shareholders. Our firm drafts and negotiates SHAs and joint venture agreements for Indian entities across all ownership structures — including cross-border JVs where shareholders are domiciled in the UAE, GCC, or European jurisdictions.
India’s technology sector generates a distinct category of commercial contract: software development agreements, SaaS terms, API access and integration agreements, technology transfer arrangements, white-labelling agreements, and platform terms of use. These contracts carry IP ownership, DPDPA 2023 data protection, liability cap, and indemnity provisions that require specialist drafting. Our lawyers and experts advise technology companies, SaaS providers, and enterprise software clients on the full suite of technology contract documentation, integrating copyright ownership provisions and dispute escalation mechanisms tailored to the technology context.
Cross-border contracts involving Indian parties require careful structuring of governing law, jurisdiction, arbitration clauses, and currency provisions. For India-UAE contracts specifically, the choice between Indian law, UAE law, and a neutral law such as English or Singapore law has material consequences for enforcement and available remedies. FEMA considerations arise wherever payment flows cross borders. ATB Legal’s dual India-UAE presence enables coordinated drafting of cross-border contracts that are commercially effective and legally enforceable in both jurisdictions simultaneously.

What law governs commercial contracts in India?
The Indian Contract Act 1872 is the primary statute governing commercial contract formation, validity, and enforceability. The Specific Relief Act 1963 governs remedies for breach. Sector-specific statutes also apply — the Sale of Goods Act 1930 for goods contracts, the IT Act 2000 for electronic contracts, and FEMA for cross-border payment arrangements.
Is a verbal agreement enforceable in India?
In principle, yes — oral contracts can be enforceable under the Indian Contract Act 1872. However, practical enforceability requires proof of the terms, which is extremely difficult without documentation. Certain transactions are also required by law to be in writing. ATB Legal recommends written contracts for all commercial arrangements of material value.
What is a shareholders agreement and why is it important?
A shareholders agreement (SHA) governs the relationship between shareholders in a company and the relationship of the shareholders vis a vis the company — covering board composition, reserved matters, share transfer restrictions, pre-emption rights, drag-along and tag-along provisions, exit mechanisms, and deadlock resolution. Without a tailored SHA, the Companies Act 2013’s default provisions apply, which frequently do not reflect the parties’ commercial intentions.
What should a distribution or agency agreement cover?
A well-drafted distribution agreement should define territory, exclusivity, minimum purchase obligations, pricing and rebate terms, IP licence scope, sub-distribution rights, term, termination, and post-termination non-competes. Agency agreements additionally need to address the agent’s authority to bind the principal.
What stamp duty applies to commercial contracts in India?
Contracts executed in India attract stamp duty under the Indian Stamp Act 1899 or applicable state stamp legislation. The rate depends on the document type and transaction value. Instruments that are inadequately stamped are inadmissible as evidence in Indian courts until the deficiency is remedied and penalty paid.
How should a cross-border contract between an Indian and a UAE party be structured?
The key structuring decisions for an India-UAE contract are governing law, dispute resolution forum, currency and payment terms, and FEMA compliance for cross-border payment flows. Parties may choose Indian law, UAE law, or a neutral law such as English or Singapore law — each has different consequences for enforcement and limitation periods. Arbitration clauses designating a neutral seat such as Singapore or London are common in India-UAE commercial contracts.

This website provides general information only, may not reflect current law, and should not be acted upon without professional advice.