Supply of goods agreement (pro-customer)

by Practical Law Commercial

A standard document that is an agreement for the supply of goods, drafted from the perspective of the customer. This standard document provides a robust framework for a medium to long-term, business-to-business (B2B) supply relationship under the law of England and Wales. It addresses key commercial and legal aspects, establishing clear supplier obligations for the manufacture, quality, and packing of goods, with warranties that build on the Sale of Goods Act 1979. The agreement outlines mechanics for forecasting, ordering, and delivery, including customer-favourable remedies for late delivery or defective goods. It also incorporates detailed provisions for pricing, such as mechanisms for annual price reviews, potential volume discounts, and a 'most favoured customer' clause. Further, this standard document manages risk through clauses on supplier indemnities, insurance requirements, and limitation of liability.