Why do I need a Product Supply Agreement?
A Product Supply Agreement between a supplier and its customer will provide certainty of the agreed deal - the quantity and type of products being supplied, price and payment terms, delivery timeframes and liability allocation if things don’t go to plan. By agreeing on these items upfront, you’ll reduce the potential for misunderstandings or disputes and encourage successful long-term relationships with your customers.
Who’s a Product Supply Agreement for?
Anyone who provides products (also known as ‘goods’) to a business customer. Products can be any physical item such as clothing, artwork, food and beverages, building supplies, furniture or car parts. This agreement is especially useful for high-value products or where the supplier and customer want to agree to bespoke terms. It can apply to ongoing or one-off supply arrangements.
What does a Product Supply Agreement cover?
The Product Supply Agreement covers all the key terms of a supplier's relationship with its customer, and there are plenty of options to customise it to your specific commercial circumstances.
It includes a process for placing orders, a description of the products, delivery terms, price and payment, intellectual property, termination, KPIs and reporting (including any sustainability KPIs or reporting), confidentiality and dispute resolution. It also contains reasonable limitations on the supplier’s liability, a ‘no-poaching’ provision and optional exclusivity.
How long will it take me to create my Product Supply Agreement?
Around 10-15 minutes – do it over a coffee with your customer! You will need to complete the Q&A within 10 days of purchase (after that your access will expire). Please reach out to us at hello@onyourterms.co.nz if you have any issues.
What information do I need to complete the Q&A?
- The name and contact details of the supplier and customer
- Details of the products and any related services
- Whether the agreement is for one order or multiple orders over a period of time (and if for multiple orders, what is the end date?)
- Any exclusivity or minimum spend requirements
- Warranty period
- Customer inspection and testing period (if relevant)
- Price and payment terms
- Delivery terms and delivery date
- Performance standards (if any)
What if I need help?
On Your Terms has teamed up with Luminate Legal to offer its customers the option of obtaining legal advice from a lawyer to provide extra assurance and peace of mind. If you would like to ask a lawyer some quick questions about your document (or your responses to the Q&A), or have your document reviewed/edited by a lawyer, click here to view and select Luminate Legal's packages and fixed-fee pricing exclusively for On Your Terms customers.
What do I do once my Product Supply Agreement is created?
The agreement is ready to sign as soon as you have downloaded it (and attached a product list and specifications, if you choose to). Both parties must sign it to ensure it’s legally enforceable, and this should be done before you start work. If you need help with how to sign the agreement, read our helpful blog here.
Other helpful resources and help:
- You may also find these bundles or documents useful for your business: Terms of Trade Bundle, Individual Employment Agreement, Independent Contractor Agreement, Term Sheet for Project, Services Agreement and Mutual Confidentiality Agreement.
- Check out our FAQs
If you’re unsure whether this agreement is what you need, reach out to us at hello@onyourterms.co.nz – we’re happy to help!
If you’re not satisfied with your purchase of this product for any reason, let us know why within 10 days of your purchase and we’ll work with you to make sure you’re happy, including giving you a full refund if necessary.
Disclaimer: On Your Terms was created to provide fast, easy and affordable access to legal information and documentation. We are not a law firm and do not provide legal advice. The information and documents we provide are of a general nature, designed for common situations, and may not be suitable for your needs or circumstances. If you need legal advice, we have a network of specialist law firm partners able to help you here.