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Supplier Agreement
I need a supplier agreement for a local vendor providing office supplies on a monthly basis, with a focus on sustainable and eco-friendly products. The agreement should include terms for a 30-day payment period, a clause for quality assurance, and an option for contract renewal every year.
What is a Supplier Agreement?
A Supplier Agreement sets the rules and expectations between a company and the businesses that provide its goods or services. Under Swiss law, these contracts spell out crucial details like delivery schedules, quality standards, and payment terms while following the Swiss Code of Obligations (Obligationenrecht).
The agreement protects both parties by clearly defining each side's responsibilities, pricing structures, and what happens if something goes wrong. Swiss businesses commonly include specific provisions about confidentiality, liability limits, and dispute resolution methods - often specifying local cantonal courts or arbitration in major Swiss commercial centers like Zurich or Geneva.
When should you use a Supplier Agreement?
Use a Supplier Agreement anytime your business starts working with a new vendor or updates terms with an existing one. This becomes especially important when ordering raw materials, specialized equipment, or critical services that keep your operations running. Swiss companies need these agreements to comply with local procurement regulations and protect themselves under the Code of Obligations.
The agreement proves essential when dealing with high-value purchases, regular deliveries, or services that affect product quality. It helps prevent misunderstandings about prices, delivery schedules, and quality standards. Many Swiss businesses create these agreements before starting any supplier relationship worth more than CHF 10,000 or lasting beyond three months.
What are the different types of Supplier Agreement?
- Agreement Between Customer And Supplier: Basic framework for one-time or simple ongoing supply relationships
- Product Supply Agreement Between Manufacturer And Buyer: Detailed terms for manufacturing-specific requirements and quality controls
- Preferred Vendor Agreement: Establishes special terms and volume discounts for primary suppliers
- Contract For Supply Of Goods And Services: Comprehensive agreement covering both product delivery and related services
- Vendors Agreement: Simplified template for small-scale or short-term supply arrangements
Who should typically use a Supplier Agreement?
- Purchasing Managers: Lead the negotiation and implementation of Supplier Agreements, ensuring terms match business needs and budgets
- Legal Counsel: Review and modify agreement terms to comply with Swiss law, especially the Code of Obligations
- Company Directors: Approve major supply contracts and sign on behalf of their organizations
- Supplier Representatives: Negotiate terms and commit their companies to delivery obligations
- Quality Control Teams: Monitor compliance with product specifications and standards outlined in agreements
- Finance Departments: Handle payment terms, invoicing procedures, and financial compliance aspects
How do you write a Supplier Agreement?
- Company Details: Gather exact legal names, addresses, and registration numbers for both parties under Swiss law
- Supply Specifics: Document precise product descriptions, quantities, quality standards, and delivery schedules
- Payment Terms: Define prices, currency, payment methods, and deadlines aligned with Swiss banking practices
- Performance Metrics: Outline measurable quality standards and acceptable delivery timeframes
- Risk Management: Include liability limits, warranty terms, and dispute resolution procedures
- Compliance Check: Our platform generates agreements that automatically include all required elements under Swiss law
- Internal Review: Have key stakeholders verify commercial terms before finalizing
What should be included in a Supplier Agreement?
- Party Identification: Full legal names, addresses, and registration numbers of supplier and buyer
- Contract Subject: Clear description of goods or services, including specifications and quantities
- Financial Terms: Pricing, payment schedules, and currency details as per Swiss standards
- Delivery Terms: Specific timelines, locations, and Incoterms where applicable
- Quality Standards: Performance metrics and acceptance criteria
- Liability Provisions: Risk allocation and limitation clauses under Swiss law
- Termination Rights: Conditions for ending the agreement and consequences
- Dispute Resolution: Swiss jurisdiction choice and arbitration options
What's the difference between a Supplier Agreement and a Contract Manufacturing Agreement?
A Supplier Agreement differs significantly from a Contract Manufacturing Agreement in several key ways, though both deal with business relationships in Switzerland's supply chain. While Supplier Agreements cover general product or service provision, Contract Manufacturing Agreements specifically focus on custom production arrangements.
- Scope of Control: Supplier Agreements mainly govern delivery and quality terms, while Contract Manufacturing Agreements include detailed production specifications and intellectual property rights
- Production Involvement: Contract Manufacturing Agreements give buyers more control over manufacturing processes and quality standards
- Intellectual Property: Contract Manufacturing Agreements typically include stronger IP protections and confidentiality clauses
- Duration: Contract Manufacturing Agreements often involve longer-term commitments and more complex termination provisions
- Cost Structure: Contract Manufacturing Agreements usually include detailed production cost breakdowns and volume-based pricing models
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