Business entities making a deal with each other need to create a written document and not settle only for a verbal agreement. Business deals usually entails an exchange of money or property between parties which explains the need for a contract.
A supply contract has similar terms with a Freelance Writing Contract than on a Consulting Contract. Supply pertains to a promise of the seller to provide particular goods to the purchasing entity at a fixed price for a given period of time. The following templates show various supply contract agreement examples provided for different types of business entity and industry.
Food Supply Contract Template
Vital Elements on Supply Contracts
Format of supply contracts differ between business industries because supply contracts are conformed into the nature of the business. Nevertheless, there are important components generally evident on various Supply Contract Templates. The following are the elements as defined below:
- Pricing Schedule – Pricing agreement on the goods being supplied is always indicated on any supply contract. This involves concessions of parties if they use discount pricing for a specific volume or if they follow a special rate like a flat rate for the goods delivered.
- Delivery Terms of Goods – Stressing out how the goods will be delivered is written on the contract. This includes shipping terms and the time frame of delivery after an order of the goods.
- Payment Terms – The duration as to when the business entity pays a pending invoice and the mode of payment to be used by the entity. Sanctions to be imposed if the business entity fails to pay on the time due should be clearly stated on the contract as agreed by the parties.
- Protection of Contracting Parties’ Rights – Similar to any Business Contract Template, a supply contract must be made for the benefit of the parties involved. There should be no overlap where one party gains more than the other. Both entities should receive the benefits they deserve.
Basic Supply Contract
Purposes of Supply Contracts
The following are the factors that support making of supply contracts in business supply deals:
- Legally Binding – Parties have the obligation to live up to the duties and responsibilities written on the written supply agreement. The contract can be used as a legal support in case of breach of contract from failure of compliance of the responsibilities stated on the contract.
- Easily Created by Parties – A contract is made with less difficulty with the use of available templates. For example, for the loan officer to create contract for loan, there are various formats of a Loan Contract Template to be perused and to be downloaded. Be sure to edit the contract template with the supply agreement as your basis.
- Completeness of Agreement Details – The contract is complete with the necessary information regarding the transaction and the agreement that transpired after negotiation of the parties. For any concerns and issues, the contract serves as a guide for the parties to follow.
Having a supply contract aligns the interests of the contracting parties. With the right compliance of the duties associated in the contract, return of investments for the business entities involved will be evident making the business deal a profitable one.