Document background
Volume Purchase Agreements are essential commercial instruments in Singapore's business landscape, particularly for companies seeking to establish long-term supply relationships with preferential pricing based on volume commitments. These agreements typically arise when a buyer seeks to secure a reliable supply source while benefiting from economies of scale, and a supplier aims to secure predictable revenue streams. The Volume Purchase Agreement encompasses key elements such as minimum purchase obligations, volume-based pricing tiers, delivery schedules, and quality standards, all while ensuring compliance with Singapore's commercial law framework, including the Competition Act and Sale of Goods Act.
