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What Is a Supply Contract?

Several types of agreements exist depending upon the subject of a transaction. Most agreements involve the exchange of goods or services between a vendor and a consumer. Such agreements are formalized into written, legal documents that detail the terms and conditions provided for by the supplier and customer. This legal document is referred to as a supply contract. This type of contract is used in order to ensure certain details such as discounted pricing or other benefits agreed upon by both parties.

A supply contract is governed by the rules and regulations stipulated in the Uniform Commercial Code, if the contract is found to be within the jurisdiction of the United States or Canada. However, no matter what jurisdiction, a supply contract has a general format. This format provides for the specific details of the agreement such as what goods or services are to be given in exchange for a certain amount of money. Specifically, a supply contract contains a pricing schedule wherein a set list of prices for the goods or services are listed for the purpose of informing the customer. It is possible that a discounted or special pricing be given to the customer, so the pricing schedule will indicate this. A supply contract also provides the essential information as to how the goods or services is to be given, how, when, and where are the goods or services to be delivered, and other necessary terms and conditions. These terms or conditions are found in the clauses or sections of the supply contract. The contract also provides information regarding the parties who are involved in the sale. Such information includes the full, legal names of the companies and persons of both supplier and customer.

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