Supply Agreements for Products / Services
Blacks Solicitors’ Commercial Law team is highly skilled at drafting, and reviewing, bespoke Supply Agreements that govern important relationships for business owners.
From a manufacturer’s need for raw materials, to a tradesman’s need for tools, all businesses and industries require goods and/or services to succeed.
Whilst many businesses and suppliers enjoy good working relationships, the advantages of having a properly drafted Agreement in respect of the supply of goods or services can’t be underestimated.
Not only will the document provide clarity to the parties as to their rights and obligations, but it will also provide adequate mechanisms and processes to deal with, and resolve, any issues which may arise (including any disputes).
Frequently Asked Questions
Can I use a “standard” Supply Agreement?
Whilst a “standard” Agreement may be used for the supply of goods or services, they often attract risk.
By their nature, these Agreements are general and in most cases will not accurately capture the nature of the parties’ relationship or their intentions. Furthermore, where the supply of the goods or services is complex or the value is particularly high, a “standard” Agreement will not be sophisticated or detailed enough to provide the parties with adequate protection.
A custom-drafted contract will ensure that the terms of the Agreement are appropriate, accurate and articulate enough to cover any (and all) pertinent issues arising pursuant to the supply of the goods or services.
What are liquidated damages and can I include them in my Supply Agreement?
Liquidated damages are damages, at a fixed amount, which are payable by one party to the other in the event that there is a breach of the Agreement.
Its purpose is to allow one party to recover the fixed amount in the event of a breach without having to pursue a traditional contract claim, during which it must be shown that there is a breach of contract and a loss suffered as a result of the breach.
Whilst liquidated damages can be extremely beneficial it is important to ensure that the fixed amount is a genuine pre-estimate of the claiming party’s loss as a result of the breach. If a court finds that this is not the case, then it will interpret the liquidated damages clause as a penalty clause and render it unenforceable.
Great care must therefore be taken when deciding the amount of any liquidated damages which may be included in any Agreement, and appropriate advice must be sought.
For more information on the above, or to find out how Blacks’ Commercial Law team can assist you with Supply Agreements, please email or call us today on 0113 207 0000.
