Document background
Framework Supply Agreements are essential commercial contracts used to establish long-term supply relationships between businesses. These agreements are particularly valuable when parties anticipate regular transactions over an extended period and want to avoid negotiating terms for each individual order. In the Hong Kong context, these agreements must comply with local commercial law while incorporating international business practices. The Framework Supply Agreement typically includes provisions for ordering procedures, delivery terms, quality requirements, pricing mechanisms, and risk allocation. It's especially useful for businesses requiring regular supply of goods or materials, providing both flexibility for future orders and certainty on fundamental terms. The agreement serves as a master document under which individual purchase orders can be placed, streamlining the procurement process while maintaining clear legal and commercial parameters.
