Who can use this Long Term Supply Agreement?
You can use this Long Term Supply Agreement if you are either a supplier or buyer that wants a regular arrangement for the sale or purchase of a particular product or range of products.
What is this Agreement for?
It is designed to enable seller and buyer to operate through an agreed set of rules including prices and minimum/maximum quantities.
What are the main issues?
The main issues for the agreement include:
- Duration – probably an initial period which can be renewed by agreement.
- Products – the products to be covered will be set out in a schedule and there will be agreed quality standards
- Ordering procedure: this needs to be specified in reasonable detail with minimum and/or maximum quantities per order
- Pricing will be pre-agreed but subject to adjustment, probably by reference to a formula to allow for increased costs or by reference to an index
- Defective products and how to deal with these, including any third-party claims, needs to be specified
- Each party to have the right to terminate in certain circumstances
- A force majeure clause is useful, especially if this is a cross-border transaction involving seller and buyer in different countries
What detailed terms does the Agreement contain?
This is a fairly balanced agreement between supplier and purchaser with 11 clauses over 7 pages and a number of schedules. The clauses cover:
- quality of products
- ordering procedures
- price and payment
- force majeure
For more information on each of these sections, see our Explanatory Notes which you will receive when you download the document from our website.
For information on signing documents see our Contract Signing page
When I download the document, can I change it and/or use it more than once?
Yes, all ContractStore’s templates are in MS Word and you can use the contract on more than one project. For more information, watch the video on this page of our website or see our FAQs
ContractStore supplies templates and is not a law firm. But all our templates are written by experienced lawyers
So we can arrange legal assistance for customers who need special terms in one of our documents or a bespoke template. . For more information see our Legal Services page.
And if you want to contact us see our Contacts page.
Contract author: Giles Dixon, a solicitor with plenty of international experience.
If you have any questions about a contract and/or want to see the Explanatory Notes before you buy, please let us know by using our contact form
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