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Exclusive Supplier Agreement

Exclusive Supplier Agreement Template for England and Wales

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Key Requirements PROMPT example:

Exclusive Supplier Agreement

"Need an Exclusive Supplier Agreement for a UK-based technology hardware manufacturer to be our sole provider of server equipment, with minimum purchase commitments of 1000 units annually, starting from March 2025."

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Document background
The Exclusive Supplier Agreement is used when parties wish to establish a sole supply arrangement, typically in situations requiring consistent quality, guaranteed supply, or volume-based pricing benefits. This document, governed by English and Welsh law, outlines the exclusive nature of the relationship, detailing obligations, pricing structures, quality standards, and compliance requirements. It's particularly valuable for businesses seeking to secure their supply chain, establish long-term partnerships, or maintain competitive advantage through exclusive arrangements.
Suggested Sections

1. Parties: Details of supplier and purchaser including registered addresses and company numbers

2. Background: Context of the agreement, including business relationship and intention to enter exclusive supply arrangement

3. Definitions: Key terms used throughout the agreement including Products, Territory, Term, etc.

4. Supply Obligations: Core obligations including exclusivity commitments, supply requirements, and delivery terms

5. Pricing and Payment: Price determination, payment terms, invoicing requirements, and price adjustment mechanisms

6. Quality Requirements: Product specifications, quality standards, and inspection rights

7. Ordering Process: Procedures for placing and accepting orders, lead times, and forecasting requirements

8. Term and Termination: Duration of agreement, renewal provisions, and termination rights

9. Warranties and Indemnities: Product warranties, supplier representations, and indemnification obligations

10. Force Majeure: Events excusing performance and related procedures

11. Confidentiality: Protection of confidential information and trade secrets

12. Governing Law and Jurisdiction: Application of English and Welsh law and jurisdiction of courts

Optional Sections

1. Minimum Purchase Requirements: Minimum volume or value commitments from purchaser, used when specific purchase quantities are guaranteed

2. Territory Restrictions: Geographical limitations on supply and resale, used when territorial exclusivity is granted

3. Marketing and Promotion: Marketing obligations and brand usage requirements, used when supplier must promote products

4. Insurance Requirements: Specific insurance coverage obligations, used for high-value or high-risk supplies

5. Compliance with Laws: Specific regulatory compliance obligations, used in heavily regulated industries

Suggested Schedules

1. Schedule 1 - Products: Detailed specification of products covered by the agreement

2. Schedule 2 - Pricing: Detailed pricing structure, including any volume discounts or pricing mechanisms

3. Schedule 3 - Service Levels: Performance metrics, measurement methods, and remedies for failure

4. Schedule 4 - Quality Standards: Detailed quality requirements, testing procedures, and acceptance criteria

5. Schedule 5 - Ordering Procedure: Detailed ordering process, including forms and systems to be used

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Competition Act 1998: Key legislation governing anti-competitive behavior. Essential for exclusive arrangements to ensure compliance with Chapter I prohibitions on anti-competitive agreements. Must verify the exclusive supply terms don't create market restrictions.

Sale of Goods Act 1979: Fundamental legislation covering quality of goods, title transfer, delivery terms, and remedies for breach in sale of goods contracts. Sets out basic statutory rights and obligations in goods transactions.

Supply of Goods and Services Act 1982: Governs service elements of supply arrangements, setting standards for quality and requirements for reasonable care and skill in service provision.

Consumer Rights Act 2015: Crucial if end users are consumers. Covers unfair contract terms, quality rights, and remedies. Must be considered even in B2B contracts if goods/services eventually reach consumers.

Contract Law (Common Law): Common law principles governing contract formation, consideration, terms and conditions, breach and remedies. Forms the foundation of contract enforcement.

Unfair Contract Terms Act 1977: Regulates reasonableness of contract terms and limitation of liability clauses. Essential for ensuring enforceability of contract terms.

Commercial Agents Regulations 1993: Specific regulations governing relationships with commercial agents, including rights, duties, and compensation arrangements.

Modern Slavery Act 2015: Requires consideration of supply chain transparency and due diligence requirements to prevent modern slavery and human trafficking.

Data Protection Act 2018 & UK GDPR: Governs processing and sharing of personal data. Must be considered if any personal data is handled within the supply chain.

Bribery Act 2010: Sets out anti-corruption provisions and compliance requirements. Essential for including appropriate anti-bribery clauses and compliance mechanisms.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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