Factors in Resource Chain Agreement

Parties:

The parties would be the vendor of the products (who perhaps is not the manufacturer of those goods) (Seller) and the purchaser of those goods (who perhaps will on-sell the products or utilize them in manufacture) (Purchaser).

Supply:

The Vendor agrees to sell the products to the Purchaser who agrees to buy them.

Time:

The source usually starts on execution of the contract. It usually ends on the initial of
  • a specified termination date (at the mercy of any rights of expansion or renewal)
  • breach of agreement by a celebration for a particular volume of days
  • insolvency of a party.

Scope of Goods:

The arrangement will identify the goods concerned. It may also lay out the specifications of these goods, such as their source, composition, size or color. It could also bring in any superior goods of the same kind that the Vendor later makes available to the marketplace.

The Supplier may (but usually does not) promise to develop and improve the goods through the period. If operating or maintenance instructions are required by end-users, these should be included.

Exclusivity:

Does the agreement prohibit the Vendor from (straight or through a third party) advertising the same goods in the same market as the Buyer?

Manufacturing:

The Supplier may be obliged to supply a set quantity, or to supply and then order, or to supply only when sufficient inventory is readily available to satisfy orders. The agreement might say that if the Vendor has competing customers for the same inventory, owner is obliged to favor this Customer.

Intellectual Property:

If the goods are of a kind protected by a patent or recorded design, then usually
  • the Vendor warrants it possesses the intellectual property and this it does not infringe one third party's rights
  • the Seller must maintain subscription of the intellectual property through the supply
  • the Vendor may need to take steps against an infringer of the intellectual property.

Orders:

How a number of days in advance must the Buyer place an order with owner? Is there the very least quantity for any one order? May the Vendor drop an order entirely or partly?

Take or pay:

If the Vendor is sourcing goods specifically for the agreement, the Purchaser may become at the mercy of "take or pay" - if the Customer does not order and purchase a minimum amount, owner may sell the shortfall to a third party and have recourse to the Purchaser if net sale proceeds are significantly less than what would they might have been over a deal to the Buyer.

Prices:

While price will depend on the circumstances, they are relevant
  • Are prices including weighing, testing, official certification, packaging, GST, shipping and delivery and transportation costs?
  • Are prices in Australian us dollars?
  • Are prices changeable as time passes and if so, by mention of what?
  • Is there a discount for amount?
  • Is the Customer assured of prices no greater than those being charged by owner to third functions?
  • Is a deposit payable with each order?
  • Are prices secured by a letter of credit, bank warranty or other security?
  • When is the price payable?
  • Is there a discount for early on payment?

Product Guarantees:

The Seller may be asked to warrant that goods supplied
  • conform to technical specs in the agreement
  • conform to the order
  • are shipped in time to meet up with the requirements of the order
  • conform to prospects product guarantees that the Purchaser will give to its customers when it on-sells the products.

If the Vendor intends to limit its responsibility for a defective supply, this will be stated. Ordinarily a Vendor will undertake to correct or replace defective goods, however, not be liable for any consequential reduction the Purchaser or its own customer may undergo.

Consumable Item:

There is a huge range of computer consumable depending on computer peripherals.

CD & DVD's: Single and Dual Part Single, Boxes and Volume on Spindles

Cleaning Products: Computer and peripherals

Computer Diskettes: Boxed and Person, Mono & Coloured

Computer Paper: Invoice, Thermal Newspaper, Statement Newspaper, Transparencies, Photo Newspaper, Plotter Rolls, Chop sheet & Continuous

Printers: Toners, Motion pictures, Drums, Dark colored and Color Ink Cartridges

Removable & Tape Cartridges: ZIP, MO, Click!, DAT, Travan, DLT, Ultrium

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