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Supply agreement

An important condition of the supply contract is that the buyer must use the purchased goods for business purposes. If the goods are purchased for personal use, such relationships cannot be finalized using the supply agreement. As a supplier can act any legal and physical person who carries out business activities.

The delivery contract is made in writing. The moment of conclusion of such a contract is determined by the moment of presentation in the contract of all essential terms and signing by both parties. If the parties to the contract are individual entrepreneurs and the amount of the contract does not exceed 10 times the size of the minimum wage, the supply contract can be concluded orally.

Mandatory conditions

Mandatory conditions are those conditions that must necessarily be spelled out in this contract.

The following conditions must be specified in the supply agreement:

The subject matter of the contract, i.e., the provision on which goods will be transferred under the supply contract and what is their value. The subject of the supply contract may be any goods that are not excluded from circulation. The contract must contain the ability to clearly define the name and quantity of the goods.
Product Name, i.e. the name of the product supplied, and its consumer characteristics. The name of the goods may be included in the specification attached to the supply agreement.
The quantity of goods must be clearly defined so that both parties can calculate it in physical and monetary terms.
The deadline, i.e. the time interval during which the seller undertakes to deliver the goods, and the buyer to pay for this lot.

Other terms are additional terms of delivery. These terms allow you to specify the mandatory terms of the contract in more detail. Other conditions in the supply contract may be absent, which is not a reason for considering the contract not to be concluded.

Other terms of the supply agreement include the following provisions:

The price of the goods, i.e. the unit cost of production and the total value of the contract. The price of the goods can be spelled out in the specification attached to the contract, which should be indicated in the mandatory conditions.
Buyer reward, which may be provided by the seller. As a rule, the buyer’s remuneration is used for additional incentives and is assigned for certain achievements.
The warranty period, i.e. the period during which the seller provides a guarantee of the quality of the goods. The contract may set the duration of the warranty period, as well as the date from which it will be counted.
Expiration date – the time interval after which the product will be considered unsuitable for further use.
Assortment, i.e. specification of goods according to their types, models, colors, sizes and other distinctive features.
Completeness, i.e. the presence of all components of the goods in the case of its collection.
Packaging. The information that the goods will be delivered in packaging must be indicated in the contract if the particulars of the goods require its packaging.
Delivery, i.e. the possibility of delivery of goods to the buyer by the seller. Delivery can be made at the expense of the buyer or at the expense of the seller.
Responsibility of the parties, i.e. penalties, fines, penalties for non-performance or late execution of the contract.
Features of a supply contract for the seller and the buyer

If the buyer does not agree with the provisions of the supply contract, the seller is entitled to send him a proposal for the approval of certain conditions, in which various options must be listed. If the contract provides for the supply of goods in batches, and the size of batches is not defined, then the batches should be uniform. The contract may establish criteria for the quality of the goods with which the goods must comply. The moment of performance of the obligation under the contract is the moment when the goods are transferred to the buyer. Payment for goods must be made in accordance with the conditions specified in the contract. If the buyer finds that the goods are of inadequate quality, he is entitled to demand a commensurate reduction in price, free repair of deficiencies or reimbursement of expenses. The buyer has the right to refuse to fulfill the terms of the contract unilaterally, if the goods were delivered of inadequate quality and they cannot be eliminated within a reasonable time or the supplier has repeatedly violated delivery times.

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