Litigation » Tips For Writing Solid Supplier Agreements

Tips For Writing Solid Supplier Agreements

September 15, 2014

FACTORY PROCESSS 420

Supply agreements are the lifeblood of many manufacturing companies. By failing to think them through at the outset, companies lay the groundwork for lost profits and possible liability, writes Foley & Lardner attorney Nicholas K. Austin. He looks at some of the most important considerations in these agreements and lays out four tips for drafting them. Number one addresses the termination provision, an awkward issue but always a necessary base to cover at the beginning of any supplier relationship. Other key provisions relate to timing, which in some cases will include specifying penalties for delays or non-performance; confidentiality, and exclusivity. The latter can be a double-edged sword, due to antitrust considerations, and it must be approached cautiously.

 

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