When it comes to Supplier Agreements, it is important to review them carefully before signing. These agreements establish the terms and conditions for a business relationship between you and your suppliers. The following are some key factors to consider when reviewing Supplier Agreements:
- Payment Terms: One of the most important factors to consider when reviewing a Supplier Agreement is the payment terms. This includes the price, payment schedule, and any discounts or penalties for late payments.
- Delivery Terms: Another important factor to consider is the delivery terms. This includes the delivery schedule, shipping methods, and any liability for damages during shipping.
- Quality Standards: It is important to ensure that the Supplier Agreement specifies the quality standards that the supplier must meet. This includes the quality of the products or services, as well as any certifications or regulatory requirements.
- Intellectual Property: If the supplier is providing any intellectual property, such as software or designs, it is important to review the agreement to ensure that the company has the right to use and modify the intellectual property.
- Termination Clause: It is important to review the termination clause to ensure that the company can terminate the agreement if the supplier breaches the terms or if there are changes in the business environment. A general right to terminate without cause is often useful.
- Confidentiality: If the supplier will have access to your confidential information, it is important to review the confidentiality clause to ensure that the supplier will keep the information confidential.
- Dispute Resolution: Finally, it is important to review the dispute resolution clause to ensure that you and the supplier have a clear process for resolving any disputes that may arise.
Reviewing Supplier Agreements is a critical task for any business and by considering these key factors, you can ensure that you have a solid foundation for your business relationship with your suppliers.
If you require assistance with reviewing a Supplier Agreement, please contact Lachlan Page Practice Group Leader for our Commercial & Business Team.
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