Perhaps the most exciting stage of the startup journey is when your product is ready to go to market. The hard work’s starting to pay off, but the real challenge is just beginning. The next step is getting your product to your customers. The best way to ensure this is through a supply agreement.
If your business supplies products to consumers or purchases products from a supplier then a Supply Agreement is essential.
WHAT DOES IT COVER?
A Supply Agreement outlines the purchase of products from a supplier to a customer. It details the terms and conditions of the services or goods to be provided and how the transaction will be invoiced, paid for and billed. Also, a well-written Supply Agreement will be upfront and reasonable about owing no liability when appropriate. You, as a vendor, should never be liable for something that your goods and services should not have been used for.
WHY IS THIS IMPORTANT?
Having a properly drafted Supply Agreement will help you to avoid issues in the future. It may not be glamorous, but it’ll ensure that your client gets your product and your business continues to thrive. It acts as insurance against disputes over the supply of your services. It also minimizes the risk of issues in the future. Crucially, it ensures that both parties are on the same page regarding the terms and conditions of the product’s supply. This gives the agreement the best chance of being fulfilled without any hiccups.