Supply Agreement

The Supply Agreement sets out the relationship between you, a supplier, and the businesses purchasing the products you are supplying.

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Last updated February 3, 2025

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Suitable for Australia

Supply Agreement

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What is a supply agreement?

A supply agreement is a contract that sets out the terms for ongoing supply of products from a supplier to a purchaser, including delivery, pricing, and responsibilities.
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When should you use a supply agreement?

Use a supply agreement when you are entering into an ongoing relationship to supply products to another business, rather than for a one-off sale.
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What should be in a supply agreement?

A supply agreement should include details of products supplied, order process, delivery terms, pricing, payment, warranties, indemnities, KPIs, and termination rights.
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Frequently asked questions

Who is this agreement suitable for?

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Does this agreement cover one-off sales?

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What legal protections does the agreement provide?

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Are there any risks or limitations for suppliers?

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How are orders and deliveries managed?

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What are KPIs and how are they set?

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What compliance or ethical standards are included?

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View Sample Supply Agreement

Supply Agreement
risk level indicator at Medium level

The Legal Risk Score of a Supply Agreement Template is Medium

Our legal team have marked this document as medium risk considering:

  • The document allows for unilateral changes in pricing during extended terms, which could lead to unpredictability in budgeting and financial planning for the buyer.
  • The supplier is required to comply with extensive warranties and standards, which could increase operational burden and risk non-compliance penalties.
  • The agreement places the responsibility for numerous costs, including packaging, handling, and insurance on the supplier, potentially increasing their operational expenses.

Users familiar with such agreements will recognize the need for careful consideration of the terms related to pricing adjustments and the extensive warranties required, which could impact the feasibility and cost-effectiveness of the agreement for the supplier.

Meet Our Users

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