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Supply contract

An important condition of the supply contract is that the buyer must use the purchased goods for business purposes. If the goods are purchased for personal use, such a relationship cannot be formalized through a supply contract. As a supplier can be any legal and natural person who carries out business activities.

The supply contract is made in writing. The moment of conclusion of such agreement shall be determined by the moment when all essential terms and conditions are stated in the agreement and signed by both parties. If the parties to the contract are individual entrepreneurs and the amount of the contract does not exceed 10 times the size of the minimum wage, the supply contract can be concluded orally.

Obligatory condition
Mandatory conditions are those conditions that must be necessarily spelled out in this agreement.

The following conditions must be specified in the supply contract:

The subject of the contract, i.e. the provision of what goods will be transferred under the contract of delivery and what is their value. The subject of the supply contract may be any goods that are not excluded from circulation. The contract must contain the ability to clearly define the name and quantity of the goods.
The name of the product, i.e. the name of the supplied products, and its consumer characteristics. The name of the goods may be included in the specification attached to the supply contract.
The quantity of the goods must be clearly defined so that both parties can count them in kind and in monetary terms.
The period, i.e. the time interval during which the seller undertakes to deliver the goods, and the buyer – to pay for this batch.
Other conditions
Other terms are additional terms of the supply contract. These conditions allow you to specify the mandatory terms of the contract in more detail. Other conditions in the supply contract may not be present, which is not a reason to consider the contract not concluded.

Other terms of the supply contract include the following provisions:

The price of the goods, i.e. the cost of a unit of production and the total cost of the contract. The price of the goods may be specified in the specification attached to the contract, which shall be specified in the mandatory conditions.
Remuneration of the buyer, which may be provided by the seller. Typically, the buyer’s reward is used for additional incentives and is assigned for certain achievements.
The warranty period, i.e. the period during which the seller provides a guarantee of the quality of the goods. The contract may set the duration of the warranty period, as well as the date from which it will be counted.
Shelf life – the period of time after which the goods will be considered unsuitable for further use.
The range, i.e. the specification of goods by their types, models, colors, sizes and other distinctive features.
Completeness, i.e. the presence of all components of the goods in the case of its collection.
Packaging. Information that the goods will be transferred in the package must be specified in the contract, if the features of the goods require its packaging.
Delivery, i.e. the possibility of delivery of goods to the buyer, carried out by the seller. Delivery can be made at the expense of the buyer or the seller.
Liability of the parties, i.e. penalties, fines, penalties for failure to perform or untimely performance of the terms of the contract.
Features of the conclusion of the supply contract for the seller and the buyer
If the buyer does not agree with the provisions of the supply contract, the seller may send him a proposal for the agreement of certain conditions, which should list the different options. If the contract provides for the supply of goods in batches, and the size of the parties is not determined, the parties must be uniform. The contract may establish criteria for the quality of the goods to which the goods must comply. The moment of performance of the obligation under the contract is the moment when the goods are transferred to the buyer. Payment for goods must be made in accordance with the conditions specified in the contract. If the buyer finds that the goods have been delivered of inadequate quality, he has the right to demand a proportionate reduction in the price, gratuitous elimination of defects or reimbursement of expenses. The buyer has the right to refuse to fulfill the terms of the contract unilaterally, if the goods were delivered of inadequate quality and their elimination can not be carried out within an acceptable time or the supplier has repeatedly violated the delivery time.

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