Supply Agreements: Key Terms for Your Business Safety

A supply contract is the foundation of modern B2B trading, providing not only regular product deliveries but also predictability, legal protection, and mutual interest balance. A well-drafted agreement regulates core rights and duties, minimizing financial, tax, and reputational risks through detailed clauses and precise structure. The essentials of a high-quality contract are clarity, certainty of terms, and internal logic throughout the document. Every provision regarding deadlines, acceptance, payments, liability, and force majeure must be as specific as possible: referencing exact dates, units of measurement, verification methods, or defined dispute procedures. A reliable agreement also covers document exchange rules, returns of defective goods, the option for price indexation amid economic shifts, automatic renewal mechanisms, and liability exemptions in unforeseen situations. It's crucial to consider sector-specific features, currency volatility, tax treatment, and logistics. For international deals, always account for INCOTERMS, dispute jurisdiction, and the applicable law. Typical mistakes to avoid include: using templates without adaptation, vague contract subject, omitting mechanisms for amendments/termination, and lacking a returns process. Involving legal experts at the drafting stage not only heightens legal protection but also business confidence, preventing costly errors and maximizing mutually beneficial, risk-averse relations.