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Agreement Between Supplier

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Nonexclusive Agreement between Supplier and Business Consultant

Agreement made on the , between

, a corporation organized and existing under the laws of the state of , with its principal office located at

, referred to herein as Consultant, and

, a corporation organized and existing under the laws of the state of , with its principal office located at

, referred to herein as Supplier.

For and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Consultant undertakes and agrees to purchase from Supplier and sell to qualified businesses the following described Products (the Products):

2. Consultant will take reasonable steps to assure that the businesses are qualified to purchase and/or use the Products at the time of each sale.

3. Supplier will keep Consultant supplied with a reasonable quantity of catalogs, service, technical, and advertising materials deemed appropriate by Consultant relating to the Products.

4. All prices and discounts are subject to change without notice.

A. All prices are F.O.B. Consultant’s distribution facilities for the Products. Supplier shall bear all costs, insurance premiums, freight, and all other charges or expenses incurred after Supplier has placed the Products in the custody of a carrier at the place of shipment to Consultant.

B. Supplier will pay for any sales or use taxes prior to the sale of the Products by Consultant to its customers.

C. Title to and risk of loss of the Products shall pass to Consultant on receipt by Consultant, or consultant’s client, of the ordered Products.

5. Supplier shall not be liable in any respect for failure to ship or for delay in shipment of Products pursuant to accepted orders where such failure or delay shall have been due wholly or in part to shortage or curtailment of material, labor, transportation, or utility services, or to any labor or production difficulty in Supplier's plants or those of its suppliers, or to any cause beyond Supplier's control or without Supplier's fault or negligence.

6. Supplier shall from time to time advise Consultant in writing of the warranty or warranties applicable to the Products.

A. In any event and notwithstanding anything in this instrument to the contrary, Supplier's liability under any warranty shall be discharged by replacing or repairing any Products, part or parts which may prove defective under normal or proper use, within the effective period of the warranty, if shown to be defective by proper evidence submitted to Supplier.

B. It is agreed that all warranties and guarantees as dated shall immediately cease and terminate, notwithstanding anything in this instrument to the contrary, in the event that any parts or structural components or appurtenances are altered or modified by Consultant or the user of the Products without the express written consent of Supplier.

C. The names of Consultant’s clients, pricing and purchasing procedures are to be confidential and result from trade secrets owned by Consultant. Client shall not use any such pricing or purchasing procedures in competition with Consultant.

7. Term: This Agreement will begin and will end one year from said beginning date; provided however said agreement will automatically renew at the end of each year unless one of the parties give the other 30 days written notice of its intent not to renew the Agreement.

8. This Agreement does not in any way create the relationship of principal and agent or employer and employee between Supplier and Consultant, and under no circumstances shall Consultant be considered to be the agent or employee of Supplier. Consultant shall not act or attempt to act, or represent itself directly or by implication, as agent or employee of Supplier or in any manner assume or create, or attempt to assume or create, any obligation on behalf of or in the name of Supplier and will not make any representations, guaranties, or warranties on behalf of or in the name of Supplier with respect to the Products. Consultant shall not use Supplier's name, service mark, or trademark without Supplier's prior written consent, except in connection with the sale of Supplier's Products.

9. All pricing, payment, and purchasing procedures are to be confidential and result from trade secrets owned by Consultant. Client shall not use any such pricing or purchasing procedures in competition with Consultant.

10. Non-solicitation: During the period Supplier is under contract with Consultant, and for a period of years after termination of said contract, Supplier will not directly or indirectly:

A. Recruit, solicit, induce, or attempt to induce any of the customers or clients of the Consultant to terminate their contractual relationship with Consultant.

B. Solicit, divert, take away, or attempt to divert or take away, from the Consultant any of its business or the patronage of its customers, clients, or accounts, for Products sold, distributed or processed by the Consultant, and Supplier shall not assist any other person to do so.

C. If any restriction set forth in this Section 10 is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

D. The restrictions contained in this Section 10 are necessary for the protection of the business and goodwill of the Consultant and are considered by Supplier to be reasonable for such purpose. Supplier agrees that any breach of this Section 10 will cause the Consultant substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available, the Consultant shall have the right to seek specific performance and injunctive relief.

11. Independent Contractor

Nothing contained in this Agreement shall be deemed to create any relationship between the parties except the independent contractor relationship specified in this Agreement, and the parties understand and agree that no license or other right or title is granted under or by this Agreement in the other party's business, enterprises, revenues, business opportunities, operating assets, intellectual property rights or any other tangible or intangible assets or properties.

12. If any provision of this Agreement is determined to be invalid or unenforceable by a court, the remaining valid provisions shall constitute the entire agreement of the parties without any action by or further notice to the parties.

13. The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

14. Governing Law: This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

15. Notices: Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

16. Mandatory Arbitration: Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

17. Entire Agreement: This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

18. Modification of Agreement: Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

19. Assignment of Rights: The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

20. Counterparts: This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

WITNESS our signatures as of the day and date first above stated.

By:

By:

Enter text✕

What the Agreement Between Supplier Is and when it applies

An Agreement Between Supplier is a contractual document that sets out the terms under which a supplier provides goods or services to a buyer. It defines scope, deliverables, pricing, delivery schedules, warranties, indemnities, inspection and acceptance criteria, payment terms, and dispute-resolution procedures. The agreement also allocates risk — for example, who bears loss in transit or who carries insurance — and may include confidentiality and IP clauses. Parties often attach schedules (pricing, technical specs, service levels) and reference governing law to make interpretation and enforcement predictable.

Why you use a formal Agreement Between Supplier

A written agreement clarifies expectations, reduces disputes, and documents remedies and performance measures. It creates an enforceable record of each party’s obligations under U.S. law and supports compliance with ESIGN and UETA when executed electronically.

Why you use a formal Agreement Between Supplier

Who typically completes and signs this supplier agreement

Signature authority varies by company policy; see the signatory authority section below to confirm who may sign on behalf of each party.

  • Procurement teams in mid-size and enterprise firms: negotiate terms, manage approvals, and hold executed agreements for audit purposes.
  • Supplier account managers and operations leads: confirm delivery schedules, warranties, and payment milestones for accurate performance.
  • Legal and compliance officers: review indemnity, insurance, IP, and data-handling clauses to ensure regulatory and contractual compliance.

Core components to include in a professional supplier agreement

A complete agreement groups essential clauses into distinct sections so responsibilities and remedies are unambiguous. Use annexes for technical specs, deliverable schedules, and pricing tables to keep the main agreement concise and enforceable.

Scope of Work

Describe precisely the goods or services, deliverables, acceptance criteria, and milestones so performance obligations are measurable and disputes are minimized.

Payment Terms

State price, invoicing cadence, payment due dates, accepted payment methods, and late-payment interest to reduce billing disputes and support cash-flow planning.

Warranties

Define warranty scope, duration, remedy options, and any exclusions for defects, ensuring clarity on repair, replacement, or refund obligations.

Liability & Indemnity

Allocate risk by limiting liability caps, defining indemnity triggers, and specifying insurance requirements so parties understand financial exposure.

Confidentiality

Identify confidential information, permitted uses, and retention or return obligations to protect trade secrets and regulated data.

Governing Law

Select the state law that will interpret the agreement and identify dispute-resolution methods such as arbitration or court venue for predictability.

Step-by-step: how to complete and finalize the agreement

Complete the document sequentially to keep fields aligned and reduce rework. Use tracked changes for negotiation and a clean final copy for execution.

  • 01
    Draft: Fill core terms and attach exhibits.
  • 02
    Review: Legal and procurement review redlines.
  • 03
    Negotiate: Exchange redlines and sign-off on final language.
  • 04
    Execute: Obtain authorized signatures and distribute executed copies.

Suggested online workflow settings for digital completion

Configure a digital workflow that enforces signing order, required fields, and authentication to reduce errors and strengthen evidentiary value.

Field Configuration
Signing Order Set role-based, sequential signing to ensure approvals follow internal controls.
Required Fields Mark signature, date, and price fields as required to prevent incomplete execution.
Authentication Level Use email + SMS code or stronger authentication for higher-risk agreements.
Audit Settings Enable full audit trail capture: IP, timestamps, and action history.

Where to send, file, and who receives executed copies

Define the routing path for signed agreements so records, accounting, and contract managers all receive the final executed copy.

  • Primary Recipient: Send the executed PDF to the buyer’s contract repository and procurement email box.
  • Supplier Copy: Supplier retains an executed copy in its contract management system for fulfilment.
  • Accounting: Forward the signed agreement to accounts payable for invoice processing.
  • Legal Archive: Store the executed document in the legal document library for audit and dispute support.

Digital signing and distribution considerations

Confirm the chosen platform meets your compliance needs (ESIGN/UETA) and matches internal retention and access-control policies.

  • File formats: PDF and DOCX export supported
  • Integrations: CRM and cloud storage links available
  • Authentication: SMS, email, or KBA options

Timelines and common deadlines to track in the agreement lifecycle

Track contractual and administrative deadlines to avoid missed obligations: performance dates, payment due dates, renewal notice windows, and cure periods for defaults.

Performance Deadline:

Date by which supplier must deliver goods or complete services.

Invoice Due Date:

Payment due within the agreed net terms (e.g., Net 30).

Renewal Notice:

Buyer must give notice within the contract’s stated notice period.

Cure Period:

Window for corrective action before termination rights arise.

Record Retention:

Retention start and end dates for contractual records and exhibits.

Common mistakes to avoid when preparing the supplier agreement

  • Leaving scope language vague, which creates disputes over deliverables and acceptance criteria.
  • Failing to list exact legal entity names, causing execution or invoicing problems and payment delays.
  • Omitting renewal or termination notice periods, which can trigger unintended automatic renewals or exposure to liability.
  • Not specifying dispute resolution or governing law, which complicates enforcement and increases litigation costs.

Key risks and potential penalties from an incorrect or incomplete agreement

Breach Liability: Monetary damages or specific performance
Termination Risk: Early contract termination and associated costs
Indemnity Exposure: Third-party claims and defense costs
Insurance Shortfall: Uncovered losses due to insufficient coverage
Payment Disputes: Delayed or withheld payments impacting cash flow
Regulatory Risk: Compliance penalties for mishandled regulated data

Essential security and compliance items to document

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Detailed signing logs and timestamps
HIPAA BAA: Business associate agreement if PHI is handled
Regulatory Standards: ESIGN, UETA, and 21 CFR Part 11 where applicable
Certifications: SOC 2 Type II and ISO 27001 recommended
Access Controls: Role-based access and SSO where available

Practical examples of supplier agreements in use

These short examples show real-world deployments and outcomes from organizations that digitized contracting and signature capture.

Optica Ventures LLC

The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers.

  • Implementation reduced turnaround time for signed supplier agreements by cutting paper routing.
  • Brian Fitzgibbons, COO, explains that consistent digital execution improved recordkeeping and made auditing contract obligations simpler across multiple vendors.

Martin Properties

I can process and execute all of these documents online with 100% compliance and built-in security.

  • The team moved lease and supplier paperwork fully online to avoid in-person signatures.
  • Tim Martin, Founder, reports that mobile signing and offline capabilities allowed field teams to get agreements signed immediately, preventing project delays.

Typical eSignature vendor pricing and feature comparison for executing supplier agreements

Compare starting price, trial availability, bulk-send capability, audit trails, HIPAA compliance, and envelope limits across common eSignature vendors to inform procurement decisions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes (Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies Varies Varies

FAQs: common signing, validity, and execution questions

Answers to frequently asked technical, legal, and procedural questions about completing and enforcing a supplier agreement.


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