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Supplier Agreement
I need a supplier agreement for a local vendor providing office supplies, with terms specifying a 30-day payment period, a minimum order quantity, and a clause for quality assurance checks. The agreement should also include a termination clause with a 60-day notice period and provisions for handling disputes under Belgian law.
What is a Supplier Agreement?
A Supplier Agreement sets out the binding terms between a business and its vendors under Belgian commercial law. It spells out how, when, and at what price suppliers will provide goods or services, along with quality standards, delivery schedules, and payment terms. This core business contract helps protect both parties and ensures smooth commercial relationships.
Beyond the basics, these agreements must follow Belgian and EU procurement regulations, especially for public contracts. They typically include important safeguards like liability limits, confidentiality clauses, and specific performance metrics. Most Belgian companies use them to manage supply chain risks, ensure legal compliance, and build stable, long-term supplier partnerships.
When should you use a Supplier Agreement?
Use a Supplier Agreement when starting any significant vendor relationship in Belgium, especially for regular deliveries, ongoing services, or high-value purchases. This becomes crucial when dealing with critical components, specialized services, or suppliers who will access sensitive company data. Belgian companies often implement these agreements before the first order or when moving from occasional to regular purchases.
The timing matters most when navigating complex supply chains, meeting EU compliance requirements, or protecting intellectual property. For Belgian public sector contracts, formal agreements need to be in place before any work begins. Having clear terms from the start helps avoid disputes, maintains quality standards, and creates a solid foundation for long-term business relationships.
What are the different types of Supplier Agreement?
- Master Supplier Agreement: Comprehensive framework for ongoing business relationships, covering multiple orders and deliveries over time
- Preferred Supplier Agreement: Establishes priority status and special terms for key vendors, often including volume discounts and guaranteed capacity
- Master Vendor Agreement: Broad template for complex supply chains, including detailed service levels and performance metrics
- Agreement Between Customer And Supplier: Simplified version for straightforward transactions, focusing on basic terms and conditions
- Agreement Between Supplier And Buyer: Standard bilateral contract emphasizing mutual obligations and risk allocation
Who should typically use a Supplier Agreement?
- Business Owners & Executives: Review and approve Supplier Agreements, set procurement policies, and ensure alignment with company strategy
- Procurement Teams: Lead negotiations, manage supplier relationships, and monitor performance against agreement terms
- Legal Departments: Draft and validate agreements to ensure compliance with Belgian commercial law and EU regulations
- Suppliers & Vendors: Provide goods or services under the agreement terms, maintain quality standards, and meet delivery commitments
- Finance Teams: Handle payment terms, track financial obligations, and ensure budget compliance
- Quality Control Staff: Monitor supplier performance and enforce quality standards specified in agreements
How do you write a Supplier Agreement?
- Basic Details: Gather full legal names, registration numbers, and addresses of all parties involved
- Scope Definition: List specific products or services, quantities, quality standards, and delivery schedules
- Financial Terms: Document pricing, payment schedules, currency, and any volume-based discounts
- Performance Metrics: Define measurable service levels, quality benchmarks, and reporting requirements
- Risk Management: Outline liability limits, insurance requirements, and dispute resolution procedures
- Compliance Check: Review Belgian commercial code requirements and EU procurement regulations
- Document Generation: Use our platform to create a legally-sound agreement that includes all mandatory elements
What should be included in a Supplier Agreement?
- Party Information: Complete legal names, registration numbers, and authorized signatories of both parties
- Contract Object: Clear description of goods or services, specifications, and delivery terms
- Payment Terms: Pricing, payment schedule, invoicing procedures, and late payment consequences
- Duration & Termination: Contract period, renewal options, and conditions for early termination
- Liability Clauses: Risk allocation, insurance requirements, and force majeure provisions
- Data Protection: GDPR compliance measures and confidentiality obligations
- Dispute Resolution: Belgian court jurisdiction, applicable law, and mediation procedures
- Quality Standards: Performance metrics, quality control procedures, and acceptance criteria
What's the difference between a Supplier Agreement and a Contractor Agreement?
A Supplier Agreement differs significantly from a Contractor Agreement in several key aspects under Belgian law. While both involve the provision of services or goods, their scope, duration, and legal implications vary considerably.
- Relationship Structure: Supplier Agreements establish ongoing commercial relationships for regular deliveries or services, while Contractor Agreements typically cover specific, time-bound projects or tasks
- Employment Status: Contractors often work more independently and may be subject to self-employment regulations, whereas suppliers operate as separate business entities with their own operational structure
- Payment Terms: Supplier Agreements usually involve regular invoicing based on deliveries or fixed schedules, while Contractor Agreements often use milestone-based or project-completion payments
- Liability Framework: Suppliers typically carry product liability and warranty obligations, whereas contractors mainly bear professional liability for their services
- Integration Level: Suppliers remain external to your organization, while contractors may temporarily integrate into your operational processes
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