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An agreement between a supplier and a buyer stating the terms and conditions of the supply and purchase of products a Supply Agreement. The agreement settles the obligations of both parties and lays down the definite path of future transactions or purchase order and payments.
The agreement also provides the outcomes in case of a dispute between the parties and the procedures to resolve the same. Both the parties should carefully review the supply agreement to ensure that the agreement must mention their needs and requirements are unambiguous. The agreement protects the rights of both parties and avoids future confusions regarding the transactions. The terms of the agreement mutually agreed by the parties thus must be detailed and thorough.
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