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Supply Framework Agreement

Supply Framework Agreement Template for England and Wales

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Key Requirements PROMPT example:

Supply Framework Agreement

"I need a Supply Framework Agreement to establish a three-year relationship with multiple IT hardware suppliers across Europe, with quarterly pricing reviews and the ability for our subsidiaries to place orders directly, starting from March 2025."

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Document background
A Supply Framework Agreement is used when parties anticipate an ongoing trading relationship requiring multiple transactions over time. This agreement, governed by English and Welsh law, establishes the master terms governing future supplies, allowing for streamlined ordering through call-off arrangements. It typically includes pricing structures, quality standards, ordering processes, and performance requirements, while ensuring compliance with relevant legislation such as the Sale of Goods Act 1979 and Supply of Goods and Services Act 1982.
Suggested Sections

1. Parties: Identifies contracting parties and their details

2. Background: Sets out context and purpose of the agreement

3. Definitions: Defines key terms used throughout agreement

4. Framework Structure: Explains operation of framework and call-off arrangements

5. Ordering Process: Details process for placing and accepting orders

6. Supply Obligations: Sets out core supply obligations and standards

7. Quality and Compliance: Details quality standards, warranties and regulatory compliance requirements

8. Pricing and Payment: Details pricing structure, payment terms and invoicing process

9. Term and Termination: Specifies duration, renewal terms and termination provisions

10. Liability and Indemnities: Sets out liability limitations and indemnification obligations

11. Force Majeure: Addresses circumstances beyond parties' reasonable control

12. Confidentiality: Protects confidential information exchanged under the agreement

13. General Provisions: Contains standard boilerplate clauses including governing law

Optional Sections

1. Exclusivity: Used when supplier is granted exclusive rights or territories

2. Minimum Purchase Obligations: Specifies minimum purchase commitments and consequences of not meeting them

3. Service Levels: Details performance metrics, KPIs and service credits

4. Volume Rebates: Sets out volume-based pricing incentives and rebate calculations

5. Data Protection: Required when personal data processing is involved

6. Anti-Bribery Compliance: Enhanced compliance provisions for high-risk jurisdictions or sectors

7. Insurance Requirements: Detailed insurance obligations beyond standard coverage

Suggested Schedules

1. Products/Services Description: Detailed specification of goods/services covered under the framework

2. Pricing Schedule: Detailed pricing structure, mechanisms and review processes

3. Service Levels: Detailed performance metrics, measurement methods and reporting requirements

4. Order Form Template: Standard form for placing orders under the framework

5. Call-off Terms: Standard terms applying to individual orders under the framework

6. Key Personnel: Lists key contacts and responsible personnel from both parties

7. Change Control Procedure: Process for managing changes to agreement terms or specifications

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Background IPR
Business Day
Call-off Contract
Call-off Terms
Charges
Commencement Date
Confidential Information
Customer
Customer Materials
Deliverables
Delivery Location
Force Majeure Event
Good Industry Practice
Group
Group Company
Initial Term
Intellectual Property Rights
Key Personnel
Law
Minimum Purchase Commitment
Order
Order Form
Parties
Products
Quality Standards
Quarter
Renewal Period
Schedule
Services
Service Levels
Specification
Supplier
Supplier Personnel
Supply Requirements
Term
Territory
VAT
Working Hours
Clauses
Interpretation
Supply Obligations
Ordering Process
Framework Structure
Delivery
Quality Standards
Price and Payment
Invoicing
Service Levels
Key Performance Indicators
Warranties
Customer Obligations
Intellectual Property Rights
Data Protection
Confidentiality
Anti-Bribery
Modern Slavery
Force Majeure
Term and Duration
Termination
Consequences of Termination
Liability and Indemnity
Insurance
Audit Rights
Change Control
Assignment and Subcontracting
Variation
Notices
Entire Agreement
Severability
Waiver
Third Party Rights
Governing Law
Dispute Resolution
Compliance with Laws
Health and Safety
Environmental Compliance
Business Continuity
Reporting Requirements
Records and Documentation
Industries

Sale of Goods Act 1979: Primary legislation governing sale of goods, covering quality requirements, title transfer, delivery obligations, and breach remedies

Supply of Goods and Services Act 1982: Legislation covering service quality standards, reasonable care requirements, performance timing, and payment terms

Commercial Agents Regulations 1993: Regulations governing relationships with commercial agents in the supply chain

Consumer Rights Act 2015: Legislation protecting consumer rights, covering unfair terms, quality standards, and remedies if end users are consumers

Late Payment of Commercial Debts Act 1998: Legislation governing payment terms and interest on late payments in commercial transactions

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of contracts made between other parties

Competition Act 1998: Legislation preventing anti-competitive practices and abuse of market dominance

Data Protection Act 2018 and UK GDPR: Legislation governing data protection obligations and processing requirements

Modern Slavery Act 2015: Legislation requiring supply chain transparency and anti-slavery provisions

Bribery Act 2010: Legislation covering anti-corruption provisions and corporate compliance requirements

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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