AGREEMENT FOR SUPPLY OF PRODUCTS
BETWEEN with a principal address at (“Supplier”).
AND with a principal address at . (“Purchaser”)
WHEREAS
A. The Supplier is a supplier of construction materials.
B. The Purchaser wishes to purchase products from the Supplier on the terms and conditions contained in
this Agreement.
AS AGREED
I. Interpretation
In this Agreement the following words will have the meanings assigned to them in this clause, except
where inconsistent with the context.
i. “Agreement” means this agreement including any schedules or annexures and as varied from time
to time;
ii. “Order” means an order placed by the Purchaser with the Supplier for the Products;
iii. “Parties” means the parties to this Agreement and their respective successors and permitted
assigns, and Party means any one of them;
iv. “Price” means the means the price list for the Products set out by the supplier;
v. “Products” means construction materials;
II. Term of Agreement
The Agreement commences on and, unless extended or terminated earlier in the manner set out in
this Agreement will continue for a period of twelve (12) months (Initial Term).
The Purchaser may at its sole discretion renew this Agreement for a further twelve (12) month term by
providing the Supplier with notification in writing no later than thirty (30) days prior to the expiry of the
Initial Term.
If the Agreement is renewed for an extended term, with the exception of the Price which may be the
subject of further negotiation between the parties, the terms and conditions of this Agreement apply to
any extended term.
III. Placement of Orders and Supply of Products
The purchaser may from time to time place Orders with the Supplier setting out the requirements for the
Order, including the date for pick up or delivery and the delivery address.
Following receipt of each Order, the Supplier will:
i. supply the Orders;
ii. abide by all laws, rules and regulations that apply to the performance of its obligations under this
Agreement;
iii. use all reasonable skill and diligence in accordance with best industry practices; and
iv. comply with all relevant policies in performing its obligations under this Agreement
The Purchaser is under no obligation or requirement to place Orders for any minimum quantity of Product
during the term of the Agreement.
IV. Risk and delivery
Title to and risk in the Products will pass to the Purchaser only after the Purchaser has accepted the
Products. Products purchased are subject to the Purchaser’s reasonable inspection, testing, and
approval at the pick up or delivery point nominated in an Order.
The Purchaser may reject the Products, even after they have been accepted, if they are defective or are
not in accordance with the Purchaser’s specifications or do not meet the requirements under the Order
(“Rejected Products”). Rejected Products will be returned to the Supplier and replaced. In case that
there is no available replacement, the Purchaser may in its sole discretion change or terminate the order.
As soon as the Supplier is aware that it will be unable to fulfil an Order or meet the delivery date set out
in an Order, the Supplier must notify the Purchaser.
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V. Price and Payment
The Supplier must provide the Purchaser with a valid tax invoice for each Order detailing the Products
supplied and the Price.
Following acceptance of the Order, the Purchaser will pay the Supplier either by cash or checks dated no
longer than sixty (60) days upon receipt of the Products and a valid tax invoice. The Purchaser will notify
the Supplier if there is an error in the tax invoice, or if it disputes some of the charges. Notwithstanding
this, The Purchaser may withhold payment of any disputed portion of the invoice pending resolution of
the dispute, but remains obligated to pay the remaining balance of the tax invoice on time.
The Purchaser is entitled to set off any amount the Supplier owes the Purchaser under this Agreement
against any amount that the Purchaser owes the Supplier under it.
The Price of the Product may vary according to the discretion of the Supplier. Thus, the Purchaser may,
at its discretion, at any time during this Agreement, conduct benchmarking exercises to compare the
Prices the Supplier has been charging, with other suppliers who supply similar Products during a similar
period. The Supplier must provide the Purchaser with all reasonable assistance with regard to the
benchmarking exercise. Where the benchmarking exercise demonstrates that the Supplier’s Prices under
this Agreement is not competitive, The Supplier and the Purchaser will agree to vary the prices to reflect
a competitive position.
VI. Warranty
The Supplier warrants that all Products supplied to the Purchaser:
i. are new;
ii. are of merchantable quality;
iii. are free from defects;
iv. are fit for their intended purpose;
v. are of good material and workmanship;
vi. in quality and in manufacturing process, comply with all relevant standards;
The warranties in this Agreement and other warranties as may be prescribed by law will extend to the
Purchaser, its successors and assigns and will run through to any expiration date on the Products, or if
no expiration date is stated, then for a period of twelve (12) months after delivery of the Products to the
Purchaser.
VII. Termination
This Agreement may be terminated by either party, with or without cause, by giving the other party ninety
(90) days' written notice to be sent via registered mail. On termination, payment will be made only in
respect of orders finalized or closed on or before the termination date and which are subsequently
completed and paid for.
EXECUTED as an Agreement this .
Name: Name:
Job Title: Job Title:
Company: Company:
Contact no.: Contact no.:
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