In An Agreement Between A Supplier And A Customer


The responsibility for setting up a good professional delivery contract may lie with the supplier or the customer, although, in the case of service contracts concluded with private consumers, it is clearly the responsibility of the supplier to act in compliance with consumer legislation, which provides that certain contractual obligations are firmly incumbent on the supplier. This section of the agreement defines the main obligations of the customer with regard to the services, since in some cases the supplier may depend on the performance by the customer of certain tasks allowing the supplier to fulfil its own obligations. These dependencies can be exposed here, in addition to a specific remedy from the provider in case of non-execution by the customer. The truth is that there are many large companies known with supplier agreements that they do not pay enough attention to. Companies write routine contracts and have them signed just to oust them and give them little attention afterwards. If you have ever questioned a customer`s master form, you may have been told that you are the only supplier who has tried to change it and that you must sign it as it is, otherwise they will find another supplier. This is alarmist: no one wants to lose a customer in a disagreement over the words of a contract. A supplier in this position must assess both levers on both sides (i.e. the importance of the supplier to the customer due to prices, capacity constraints, time constraints or other factors?) against the likelihood and extent of liability that could result from adverse provisions of the agreement.

Be as strategic as possible to eliminate the biggest risks – and getting help from a practical lawyer who understands your business wouldn`t hurt either. I repeat: you must be given qualified advice in the elaboration of the details and text of the contractual document, especially when the service contract is of a significant nature or presents potentially high debts, and in particular when the delivery is made to individuals who, as has already been explained, benefit from certain additional legal protection measures that must be reflected in the contract or the act of the contractual document. Some supply agreements may include an addendum or a supplementary agreement, in particular in the case of leasing or financing, where another party provides financing; in this case, the main service or supply contract must refer appropriately to the addendum and include appropriate conditions and must not contain anything. 8. If you manufacture for “stock”, make sure that the customer is contractually obliged to purchase it. If you agree to keep a stock of prefabricated parts or to purchase equipment for the customer, the agreement you sign should clearly oblige the customer to purchase the warehouse and equipment after the termination of the contract. 5. Indicate the obligations to buy and sell. Purchase obligations are usually either “take or pay” or “requirements”. “Take or Pay” means that the customer agrees to purchase a certain quantity for a certain period of time, regardless of the need. Typically, a “requirement contract” requires the customer to purchase from the supplier a percentage of the customer`s total “purchase.” If you enter into a “requirement contract”, you need to be clear about what “requirements” means: is it the requirements of one or all of the customer`s sites? Even foreign sites? If you accept a 50% obligation, does this mean that the customer must purchase 50% of his needs for each type of part mentioned or 50% of the total combined parts? What about parts delivered by a customer partner? The terms of the agreement should familiarize themselves with such details..

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