Document background
The Master Procurement Agreement serves as the cornerstone document for establishing and managing long-term procurement relationships between organizations. It is particularly useful when a company anticipates regular or multiple purchases from the same supplier over time. This agreement, governed by Dutch law and complying with the Dutch Civil Code, sets out the overarching terms and conditions that will apply to all future transactions, while allowing flexibility for specific purchases through individual purchase orders. It typically includes provisions for pricing, ordering procedures, quality requirements, warranties, and risk allocation, with detailed operational aspects contained in schedules. The Master Procurement Agreement is designed to streamline the procurement process, reduce transaction costs, and provide clear guidelines for both parties while ensuring compliance with Dutch legal requirements and commercial practices.
