Overview
A Supply Agreement is a legally binding contract between a supplier and a buyer that outlines the terms and conditions related to the purchase and delivery of goods or services.
Full Details
What is a Supply Agreement?
A Supply Agreement is a legally binding contract between a supplier and a buyer that outlines the terms and conditions related to the purchase and delivery of goods or services
What are the benefits of creating a Supply Agreement?
- Consistency of Supply: It guarantees a consistent supply of goods or services over the term of the agreement, helping businesses to plan effectively and maintain continuity in their operations.
- Cost Management: By locking in prices for a certain period, businesses can manage their budget more effectively and protect against price fluctuations.
- Quality Assurance: The agreement allows the buyer to specify the quality of the goods or services, providing assurance that the supplies will meet their requirements.
- Risk Mitigation: It provides legal recourse if the supplier fails to meet their obligations, thus protecting the buyer's interests.
- Efficiency: By setting out the terms and conditions upfront, the agreement reduces the need for negotiation and paperwork for each individual purchase.
Solution