Document background
A Supplier Rebate Agreement is a crucial commercial document used when establishing volume-based or performance-based incentive arrangements between suppliers and their customers. This agreement type is particularly relevant in Hong Kong's dynamic trading environment, where complex supply chain relationships often require structured rebate programs. The document establishes clear mechanisms for calculating and paying rebates, typically based on purchase volumes, values, or other performance metrics. It needs to comply with Hong Kong's competition law framework while protecting both parties' commercial interests. The agreement is commonly used in wholesale, distribution, and retail contexts, particularly where there are significant recurring purchase volumes that justify a formal rebate structure.
