International

Supply contract


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This contract is used for establishing long-term agreements (i.e. one year or more) between a manufacturer (referred to here as the Supplier) and his/her client (the Buyer) for the supply of products at predetermined prices. Transactions are carried oyt through regular orders (every month, or every three months, etc.). In the contract, the minimum and maximum amounts to be supplied are established, as well as a number of alternatives for the adjustment of the price at the end of each year within the term of the contract.

The contract is valid for two different kinds of supply: a) the regular acquisition of products (prime material, components, etx.) ehich the Buyer is to incorporate in the manufacturing process of its own products; b) the regular acquisition of products which the Buyer is to sell on elsewhere under his/her own brand, and without any significant modifications, in order to complete his/her range of products.

In the most important aspects of the contract (amounts oand orders, formula for adjusting prices, conditions of payment, etc.), a number of alternatives have been suggested in order that the most appropriate version may be chosen for the purposes of whoever writes up the contract (i.e. the Supplier or the Buyer).