Are These Key Clauses Included In Your Supplier Contract?

Every supplier contract will be slightly different, as every business is slightly different. However, there are important clauses that should be included in a supplier contract. When drafting a supplier contract, or entering into a supplier agreement, you need to make sure these clauses are included.

It is recommended that you always speak to our commercial solicitor that is experienced in supplier contracts. They can review or draft supplier contracts for you to ensure that you are protected. Call our supplier contract experienced commercial lawyers now to review or draft your supplier agreement.

• Goods or Services Description

This key clause in your supplier contract needs to specific. You need to clearly explain what is being supplier, the quantity, standards and any other specifications.

• Payment Terms

You need to clearly state the price and payment terms within the supplier contract. This will include the agree price and when payments are due. You should also state how invoices are submitted and if payment is made late, the consequences for this.

• Timescales

The supplier contract should clearly state when the goods or services will be delivered and the expected timescales. If there was to be a delay with delivery, what are the penalties for this and how will it be resolved?

• Terms

Another of the key clauses to be included in your supplier contract are details surrounding the contract term and termination. It needs to state how long the contract will last and if it can be renewed. You should also include the grounds for termination and how much notice must be given for this.

• Liability

The supplier contract should limit your liability as appropriate. It is important that the supplier takes responsibility for any losses caused by their products or services. There may also be indemnities for specific risks too.

• IP

If a supplier is creating materials or products for a client, it needs to be stated clearly who owns the intellectual property (IP) for this. This is the case for services and products such as designs, software and content for example.

• Confidentiality

There may be times when sensitive information is shared between a client and a supplier. There needs to be a confidential clause within the supplier contract. This will prevent either party from disclosing the sensitive information.

• Dispute Resolution

Even the best businesses with the most thorough plans will have issues. This is why the key clause of dispute resolution must be included in your supplier contract. By agreeing or stating in advance how disputes will be handled, this helps to avoid further issues.

Investing a little time, and gaining the skills from a legal expert, for your supplier contracts can save you a lot of time, stress, worry and money later down the line. Never rely on generic templates that can be found online. These are not unique to your business and are unlikely to cover all the key clauses that are relevant to your business and will protect you.

Call our commercial lawyers in Peterborough now to help ensure the key clauses and included and reviewed within your supplier contracts before supplier agreements are entered into.