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Supply Agreement
Outline supply terms, pricing, and obligations between suppliers and buyers with this Supply Agreement Template.
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Supply Agreement
This Supply Agreement (“Agreement”) is entered into on [Date], by and between:
• Supplier: [Company Name], with a principal place of business at [Address].
• Buyer: [Company Name], with a principal place of business at [Address].
1. Products and Purchase Orders
1.1 Products
Supplier agrees to supply the following Products: [List or attach Schedule].
1.2 Purchase Orders
Buyer will issue written Purchase Orders (POs) specifying quantities, delivery dates, and prices.
2. Forecasts (If Applicable)
Buyer may provide rolling forecasts. Supplier will use best efforts to meet projected demand.
3. Pricing and Payment
• Prices: [Specify or reference an attached price list].
• Payment Terms: [e.g., Net 30 days from invoice date].
• Currency: [USD, EUR, etc.].
4. Delivery and Shipping
• Delivery terms: [Incoterms if relevant, e.g., FOB, CIF].
• Title and risk of loss pass upon [Delivery or Acceptance, as defined here].
5. Quality and Inspection
• Buyer may inspect Products upon receipt.
• Non-conforming goods: Buyer may reject or require replacement at Supplier’s expense.
6. Warranties
Supplier warrants the Products are free from defects in materials and workmanship for [Warranty Period].
7. Term and Termination
This Agreement remains in effect for [Initial Term, e.g., 1 year], automatically renewing unless terminated with [Number] days’ notice.
8. Confidentiality
Each Party shall protect any confidential information disclosed under this Agreement.
9. Governing Law and Dispute Resolution
This Agreement is governed by the laws of [State/Country]. Disputes to be resolved by [court or arbitration forum].
Signatures
Supplier: ______________________________ Date: __________
Name/Title: ___________________________
Buyer: ________________________________ Date: __________
Name/Title: ___________________________
Details
Learn more about
Supply Agreement
SUPPLY AGREEMENT FAQ
What is a Supply Agreement?
A supply agreement is a legally binding contract that outlines the terms and conditions under which a supplier provides goods, products, or raw materials to a buyer. It specifies critical details such as product descriptions, quantities, pricing, quality requirements, delivery schedules, and payment terms. These agreements can be short-term for specific projects or long-term for ongoing supply relationships, ensuring a structured and predictable flow of goods between the parties.
Why do you need a Supply Agreement?
You need a supply agreement to clearly define the expectations and obligations of both the buyer and the supplier. It helps maintain pricing stability, enforces consistent quality standards, and sets reliable delivery timelines. A well-drafted supply agreement also serves as legal protection in case of disputes over product defects, late deliveries, or non-payment. For businesses reliant on continuous or large-volume supplies, it ensures operational stability and reduces risks associated with supply chain disruptions.
When should you use a Supply Agreement?
Use a supply agreement whenever your business depends on regular deliveries of goods or materials from a third-party supplier. This includes manufacturing operations, retail businesses, construction companies, and service providers who require specific products to operate. It is especially important for long-term supplier relationships, high-value orders, or critical supply chains where failure to deliver could significantly impact operations.
How to write a Supply Agreement?
Start by identifying the buyer and supplier with complete contact details. Clearly define the products or materials being supplied, including specifications, quality standards, and acceptable tolerances. Outline the quantity, pricing structure, and any applicable discounts. Include delivery schedules, shipping terms, packaging requirements, and inspection procedures. Specify payment terms, remedies for breach, return policies, termination rights, and dispute resolution mechanisms. Both parties should review, sign, and retain copies of the agreement for their records.
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