A supplier agreement is an agreement between a supplier and another party. Generally, the other party is a business or company. A supplier may refer to a manufacturer, processor, packager, distributer, wholesaler, dealership, or merchant. The agreement is a consensus between the two parties regarding the rights and obligations surrounding the supplier’s business relationship with the other party.
Generally, the supplier agreement will cover a number of issues. First, the terms and conditions of the agreement will be spelled out. The effective date and term of the agreement will be specified. The specific products or services provided will be stated. Any issues of liability will be addressed. The terms and rates of payments will be discussed, as well as arbitration details. Any conditions under which the agreement will be terminated will also be laid out in the agreement. Any warranties and/or disclaimers will also be included.
Confidentiality and non-disclosure may be addressed as well. There will probably be a limitation of liability in the supplier agreement as well as indemnification. Supplier agreements are used for a wide range of products and materials from scientific research to manufacturing companies. Supplier agreements cover the terms for providing signs, medical equipment, tires, and vehicles. They are used to cover words and articles as well as materials and labor. Suppliers may be providing a supply of goods or services, advice or information, real property, financial supplies, or actions.
The other party may be an individual, an association, an organization, a company, a corporation, a partnership, or a firm. The supplier agreement is necessary to ensure that there are guidelines to provide a regular supply of the materials, goods, or services as needed. Supplier agreements can protect both the supplier and the party receiving the supplies. Many companies have begun to create supplier agreements that cover longer periods of time.
This can benefit both sides, as the supplier is guaranteed to have a market for whatever they are providing, while the party receiving the product is able to maintain set terms – and generally save money. If you have a good working relationship with a particular supplier, you may want to look into creating a long-term supplier agreement. As with any legal document, it makes sense to have a lawyer either draft the agreement or at least look it over.
If you choose to write your supplier agreement yourself, then the easiest thing to do is download a premade supplier agreement form from a legal document company. You then need to simply fill in the pertinent details and have both parties sign and date the agreement. A supplier agreement template should provide you with a document that is easy to use and simple to understand.
It will help you to easily define the terms and conditions to be included. These prepared forms can save you time and effort. Using a form for your supplier agreement should allow you to create a supply agreement more quickly while ensuring that you cover all of the necessary terms and conditions.
To see a sample supplier agreement click here.