Supply of Goods Agreement

A supply of goods agreement is an agreement between two commercial parties, the Supplier and a Customer, that outlines the terms and conditions under which goods will be supplied and delivered.

What is the difference between a supply or goods agreement and a sale agreement?

A supply of goods agreement is to be used where the goods are not readily available to buy in-store, and have to be made to the Customer's specifications. As such, the Supplier will manufacture the goods for the Customer who will in turn purchase them.

On the other hand, a sale of goods agreement is used for ready-made goods. The sale of goods agreement will usually include a schedule of goods that will be available for purchase.

Is it mandatory to have a supply of goods agreement?

No, it is not mandatory to have a supply of goods agreement. However, it is highly recommended to have one considering the goods will need to be custom made for the customer. As such, it will be beneficial to have the details in writing along with any other terms and conditions.

Who can enter into a supply of goods agreement?

Any form of business can enter into a supply of goods agreement. This includes a sole trader, a general partnership, an LLP or a company.

What can be the duration of a supply of goods agreement?

There is no required maximum duration for a supply of goods agreement. The length of the supply of goods agreement is up to the parties. Hence, a supply of goods agreement can run indefinitely or for a fixed term.

What has to be done once a supply of goods agreement is ready?

Once the supply of goods agreement is ready, it should be signed by both parties or their representatives. Each party should then keep a copy of the signed agreement for their records.

Which documents should be attached to a supply of goods agreement?

The following documents can be attached to a supply of goods agreement:

• Specifications for the products to be supplied;
• Schedule for delivery of the goods; and
• Any appendices to the main agreement.

Is it necessary to have witnesses for a supply of goods agreement?

No, it is not necessary to have a witness for a supply of goods agreement. Once it has been signed by the parties, it will be effective.

What must a supply of goods agreement contain?

A supply of goods agreement must contain:

• The details of the goods;
• The frequency of orders placed by the customer;
• How the goods will be delivered/supplied; and
• How payment will be made.

Which laws are applicable to a supply of goods agreement?

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Supply of Goods Agreement - Template - Word & PDF

Country: United Kingdom

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