Answer to the question:
The following is the structure of the agreement between the company and supplier.
1. Title : The first part is the title of the contract.
2. Description of the product or the service to be included in the contract.
3. Name of the parties involved : The parties involved are entered in the contract along with their details such as addresses, Company Registration Numbers, Contact details, etc.
4. Area covered : The territory for the supply of product or service is identified and noted in the contract.
5. Definitions of all the items frequently occurring in the contract are noted down for easy understanding.
6. The period or term of the contract is noted.
7. Pricing of the product or services are entered in the contract or if more products or services are involved, a separate annexure or schedule is attached to the contract having reference in the contract.
8. Any pricing adjustment are also entered in the contract with respect to changing conditions such as term of the contract or quality of the product or service.
9. Responsibilities of both the company and supplier are defined and included in the contract.
10. Terms for payment by the company to the supplier are entered.
11. The degree of confidentiality or privacy is entered in the contract. Further, dispute resolution and arbitration process is also defined for any such future event.
12. Terms and conditions for termination of the contract are defined and entered.
13. Renewal process is also defined in the contract in the eventuality of termination of the contract.
14. Laws applicable in the contract are entered.
15. Signatures of all the parties involved is taken along with the signatures of few witnesses present during the execution of the contract.
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