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Basic Supply Agreement Template for England and Wales

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Key Requirements PROMPT example:

Basic Supply Agreement

"I need a Basic Supply Agreement for my manufacturing company to purchase electronic components from a UK supplier, with monthly deliveries starting from March 2025 and specific quality control requirements for automotive industry standards."

Document background
A Basic Supply Agreement is commonly used when businesses need to establish a formal arrangement for the regular supply of goods or services. Under English and Welsh law, this document sets out the essential commercial and legal terms governing the supply relationship, including pricing, delivery, quality standards, and payment terms. It's particularly useful for ongoing supply relationships where parties need clarity on their rights and obligations while ensuring compliance with relevant legislation such as the Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982.
Suggested Sections

1. Parties: Identification and details of contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Supply Obligations: Core obligations regarding supply of goods/services

5. Pricing and Payment: Price, payment terms, invoicing

6. Delivery: Delivery terms, timing, and logistics

7. Quality Requirements: Quality standards and specifications

8. Term and Termination: Duration and termination provisions

Optional Sections

1. Service Levels: Specific performance metrics and KPIs - include for complex or critical supplies

2. Intellectual Property: IP rights and protections - include when IP is involved in supply

3. Data Protection: GDPR compliance provisions - include when personal data is processed

4. Insurance: Insurance requirements - include for high-value or high-risk supplies

Suggested Schedules

1. Products/Services Schedule: Detailed description of goods/services to be supplied

2. Pricing Schedule: Detailed pricing structure including any volume discounts or special rates

3. Service Levels Schedule: Detailed performance metrics, KPIs and measurement methodology

4. Specification Schedule: Technical specifications and requirements for the goods/services

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





















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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Sale of Goods Act 1979: Primary legislation governing sale of goods, covering quality standards, fitness for purpose, title, description, delivery terms, and transfer of risk and property

Supply of Goods and Services Act 1982: Legislation setting standards for service quality and establishing reasonable time and price provisions in supply contracts

Unfair Contract Terms Act 1977: Controls use of exclusion clauses, implements reasonableness test for contract terms, and regulates liability limitations

Consumer Rights Act 2015: Key legislation for B2C contracts covering quality standards, consumer protection provisions, and regulation of unfair terms

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing interest on late payments in commercial transactions

Contract (Rights of Third Parties) Act 1999: Regulates third party rights in contracts and their ability to enforce contractual terms

Bribery Act 2010: Anti-corruption legislation affecting commercial relationships and requiring adequate procedures to prevent bribery

Modern Slavery Act 2015: Requires commercial organizations to ensure transparency in supply chains regarding slavery and human trafficking

Data Protection Act 2018: UK implementation of GDPR, governing handling of personal data in commercial relationships

Common Law Principles: Fundamental contract law principles including formation, consideration, intention to create legal relations, capacity, and remedies for breach

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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