Raw Material Supply Agreement Template for United States

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Key Requirements PROMPT example:

Raw Material Supply Agreement

"I need a Raw Material Supply Agreement for our chemical manufacturing company to source specialty polymers from a new supplier in Texas, with specific quality control requirements and monthly delivery schedules starting from March 2025."

Document background
The Raw Material Supply Agreement is essential for businesses requiring consistent supply of materials for their operations. Used when establishing ongoing supply relationships, this agreement provides a comprehensive framework for material procurement, quality standards, delivery schedules, and risk management. Under U.S. jurisdiction, it incorporates UCC requirements and relevant industry regulations, making it particularly vital for manufacturing, chemical, pharmaceutical, and other industrial sectors. The agreement typically includes detailed specifications, pricing mechanisms, quality control procedures, and compliance requirements.
Suggested Sections

1. Parties: Identification and details of supplier and buyer

2. Background/Recitals: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement

4. Supply Obligations: Core obligations regarding supply of materials, quantities, and delivery terms

5. Pricing and Payment Terms: Price structure, payment schedules, and invoicing requirements

6. Quality Requirements: Specifications, standards, and quality control procedures

7. Delivery Terms: Logistics, timing, and delivery responsibilities

8. Term and Termination: Duration of agreement and termination provisions

Optional Sections

1. Forecasting: Process for demand forecasting and planning - used for long-term relationships with regular supply needs

2. Exclusivity: Terms of exclusive supply arrangement - used when parties agree to exclusive supply relationship

3. Storage Requirements: Specific storage conditions and responsibilities - used for materials requiring special storage conditions

4. Compliance with Laws: Specific regulatory compliance requirements - used for heavily regulated materials

Suggested Schedules

1. Product Specifications: Detailed technical specifications of raw materials

2. Pricing Schedule: Detailed pricing structure and any volume-based discounts

3. Quality Control Procedures: Detailed quality testing and acceptance procedures

4. Delivery Schedule: Specific delivery timeframes and locations

5. Safety Data Sheets: Material safety information and handling requirements

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

Clauses
Industries

Uniform Commercial Code (UCC): Primary legislation governing sale of goods in the US, particularly Article 2 which covers contract formation, warranties, title transfer, and risk of loss provisions

Federal Antitrust Laws: Sherman Antitrust Act and Clayton Act which govern competitive pricing and fair trade practices in supply agreements

Food Safety Modernization Act: Federal legislation governing food safety standards and requirements for food-related raw materials

Federal Hazardous Substances Act: Regulations governing the handling, labeling, and transportation of hazardous materials

Environmental Protection Agency Regulations: Federal environmental standards and compliance requirements for handling and processing raw materials

Toxic Substances Control Act: Federal law governing the production, importation, use, and disposal of specific chemicals and toxic substances

State-Specific Laws: Various state-level regulations including state UCC variations, environmental regulations, and specific contract laws

International Trade Laws: Including Incoterms, CISG, import/export regulations, and customs requirements for international material sourcing

FDA Regulations: Food and Drug Administration requirements for materials used in food, drug, or medical applications

OSHA Requirements: Occupational Safety and Health Administration standards for handling and processing raw materials

Statute of Frauds: Legal requirement that certain contracts must be in writing to be enforceable

Common Law Contract Principles: Fundamental contract law principles including offer, acceptance, consideration, and performance 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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