Supply of Goods Agreement: Definition, Terms, Example
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What is a Supply Of Goods Agreement?
A supply of goods agreement is a contract between a supplier and purchaser that sets the terms and conditions of their business relationship. The contract details what goods are to be supplied, on what schedule, and what payments should be made against them. It also details the specific roles and responsibilties of each party. For example, the supplier typically agrees to deliver product on a set schedule as long as the purchaser makes timely payments.
The purpose of the supply of goods agreement is to ensure that both parties understand the terms of the agreement. It also provides guidance and can be used as supporting documentation for legal claims.
Common Sections in Supply Of Goods Agreements
Below is a list of common sections included in Supply Of Goods Agreements. These sections are linked to the below sample agreement for you to explore.
Supply Of Goods Agreement Sample
(Translated version)
Party A:
|
Yan Tai New Era Natural Food Supplement Company Limited | |
Party B:
|
Zhejiang University (Hangzhou) Innoessen Bio-technology Inc. |
| a. | Name, Classification and Specification of Products: | |
| Bamboo Leaf Flavone fine powder (EOB-f04); Total flavone: 24 ~ 32%, ash £ 5%, lead (Pb) £ 2mg/kg, Arsenic(As) £ 1mg/kg | ||
| Bamboo Leaf Flavone powder (EOB-f04): Total flavone 12 ~ 16%, ash £ 8%, lead (Pb) £ 1mg/kg, Arsenic (As) £ 0.5mg/kg | ||
| b. | Standard of product technology (including quality requirement): According to corporation’s standard |
| a. | Packing of products: according to the agreed standard | |
| b. | All packing expenses shall be borne by Party B |
| a. | Delivery entity: Zhejiang University (Hangzhou) Innoessen Bio-technology Inc. | |
| b. | Delivery method: Party B is responsible to arrange for delivery | |
| c. | Expenses: To be borne by Party B | |
| d. | Transportation: Railway or truck transportation |
| e. | Delivery destination and products receiving entity (or recipient): The address location of Party A. If Party A wishes to change the delivery destination or products recipient, it has to give 10 days’ notice to Party B before the delivery date. |
| a. | The date of delivery is the date of the transportation company’s stamping to transport the products as instructed by Party B. | |
| b. | The date of withdrawal of products by Party A itself is the date which Party B notifies Party A in accordance with the agreement. In the buyer’s notification of withdrawal of products, it must give the seller necessary time for delivery. The actual delivery or withdrawal of goods being earlier or later than as stipulated in the agreement will be considered as early or late delivery or withdrawal of the products. | |
| c. | The delivery of products by Party B is the actual date of delivery of the products. |
a.
|
Price of goods: | EOB-f02 | RMB700 / kg; | |||
| EOB-f04 | RMB300 / kg |
b.
|
Payment for purchases: | Party B will deliver the products upon receipt of payment from Party A | ||
c.
|
Other agreed terms: | A discount of 5% will be given upon the purchase of the same product up to 5 tons and a discount of 10% will be given upon the purchase of the same product up to 10 tons |
a.
|
Time of inspection: | Within one week after products arrive at destination | ||
b.
|
Method of inspection: | As agreed by both parties | ||
c.
|
Standard of inspection: | According to Clause 1 of the agreement | ||
d.
|
Mode of confirmation: | By Fax or emails |
| a. | In the process of inspection of the products, if Party A is aware of any discrepancy in terms of classification, model, specification and quality, Party A shall store the products properly and notify Party B of the discrepancy found within one week. | |
| b. | If Party A does not notify Party B of the discrepancy found within the time limit, the products shall be regarded as delivered as specified in the agreement. | |
| c. | Party A shall not dispute if the products have been used, kept and maintained improperly by Party A, resulting deterioration thereof. | |
| d. | Upon receipt of Party A’s notification of discrepancy, Party B shall deal with it within a |
| week’s time otherwise it shall be treated as that Party B has agreed to the discrepancy as notified and the rectification as proposed by Party A. | ||
| e. | The purchaser shall specify in its notification of discrepancy the product name, model number, specification, trademark, license number, approval number, certificate of compliance or warranty certificate number, quantity, packing, method of inspection, condition of inspection and certificate of inspection and proposal of rectification and those items which must be specified as agreed. |
| a. | Party B shall promptly notify the purchaser of non-delivery of the products and unless otherwise with the consent of the purchaser, Party B shall pay a damage equivalent to 20% of the purchase price of the products in respect of which Party B failed to deliver. | |
| b. | Products delivered by Party B which classification, model number, specification and quality are not as specified in the agreement, the price of the products shall be adjusted by negotiation if the products are still usable. If the products are un-usable, Party B shall be responsible to arrange for replacement thereof and bear the actual expenses for the replacement. If Party B does not arrange for replacement of the un-usable products, the products ordered shall be considered as not delivered. | |
| c. | Party B shall pay a penalty to Party A in respect of late delivery of products, calculated in accordance with the portion of the sale proceeds of the products of the late delivery and shall be responsible to compensate Party A of all loss and damage which Party A may have suffered as a result of the late delivery. | |
| d. | For the sake of Party B, if the products are delivered to a wrong destination or recipient, Party B, besides that it shall deliver the products to the right destination and recipient as specified in the agreement, it also shall pay all actual expenses incurred and damage to Party A in respect of the late delivery. Party B shall bear all additional expenses if it changes the route and means of transportation by its own. | |
| e. | If the products are delivered earlier than the date as agreed, Party A is only obliged to settle the payment as specified in the agreement. |
| a. | In the case that Party A returns the products as delivered, it has to pay Party B an amount equivalent to 20% of the sale price of the products as the penalty. | |
| b. | If Party A does not withdraw the products on the date as specified in the agreement, it shall pay to Party B a penalty for late withdrawal and in addition, it shall pay a fee for safe keeping and maintenance of the products. | |
| c. | Part A shall compensate Party B for late payment. | |
| d. | If Party A does not accept delivery as specified in the agreement, it shall pay a penalty and damage to Party B as a result of the non-acceptance of delivery. | |
| e. | If Party A wrongly notifies Party B of the destination and recipient, it shall bear the |
| responsibility to compensate Party B. |
| a. | to be decided by arbitration under the supervision of the local arbitration authority; |
|
| b. | to be litigated in the People’s law courts. |
Party A:
|
Yan Tai New Era Natural Food Supplement Company Limited (Company’s Chop) | |
Legal representative:
|
Yin Hesheng | |
Authorized Person:
|
Liu Zhihe (/s/ Liu Zihe, with company chop of Party A) | |
Address:
|
Block 4, No. 30 Zhu Jiang Lu, Yan Tai Development District, Yan Tai | |
Bank:
|
Industrial Bank, Yan Tai Development District | |
Account No.:
|
1606020809022180477 | |
Telephone:
|
0535-6378544 | |
Postal Code:
|
264006 | |
Party B:
|
Zhejiang University (Hangzhou) Innoessen Bio-technology Inc. (Company’s Chop) | |
Authorized Person:
|
Zhang Ying (/s/ Zhang Ying, with company chop of Party B) | |
Address:
|
13th Floor, Qian Jiang Science Building, 388 Wen San Lu, Hangzhou, Zhejiang | |
Bank:
|
Shanghai Pudong Development Bank, Wenhui Branch, Hangzhou | |
Account No.:
|
95140155300000059 | |
Telephone:
|
0571-88216326/88216324 | |
Postal Code:
|
310012 |
Reference:
Security Exchange Commission - Edgar Database, EX-10.4 6 h00634exv10w4.htm EX-10.4 SUPPLY OF GOODS AGREEMENT WITH CHINA NEW ERA, Viewed October 13, 2022, View Source on SEC.
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