A product supply agreement is an agreement in which a supplier sells products to a business, and specifies the terms for the transactions, including the price, timing, quantities, delivery, shipping, payment terms, exclusivity, return of defective or nonconforming goods, and return of unsold goods. A supplier may be a distributor, wholesaler, dealer, or merchant.
In Texas, a product supply agreement is a legally binding contract between a supplier and a business that outlines the terms and conditions of the sale and purchase of products. These agreements typically cover various aspects such as pricing, order quantities, delivery schedules, shipping logistics, payment terms, and other transactional details. Texas law requires such contracts to be in compliance with the Uniform Commercial Code (UCC) as adopted in the state, which governs commercial transactions. The agreement may also include clauses on exclusivity, which would require the business to purchase certain products only from the supplier, and provisions for the return of defective, nonconforming, or unsold goods. It is important for businesses to ensure that these agreements are carefully drafted to protect their interests, and it is advisable to consult with an attorney to navigate the complexities of Texas commercial law and to ensure that the agreement is enforceable and complies with all relevant statutes and regulations.
