Supply Agreement

A supply agreement is a legal contract between a buyer and a supplier that outlines the terms and conditions for the purchase and delivery of goods or materials. It typically includes details such as the specifications and quality standards for the goods, the pricing and payment terms, the delivery and acceptance procedures, and any warranties or indemnities. The agreement may also cover issues such as the minimum purchase requirements, the exclusivity of the supply relationship, and the termination provisions. Supply agreements are important for ensuring that buyers have a reliable and cost-effective source of goods, and that suppliers have a stable and predictable demand for their products. They should be carefully negotiated and drafted to ensure that they are fair, flexible, and aligned with the parties’ business needs and capabilities.