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 South Carolina, 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 conditions related to exclusivity or the return of goods that are defective, nonconforming, or unsold. The Uniform Commercial Code (UCC), which South Carolina has adopted, governs such transactions involving the sale of goods. The UCC sets forth the general rules for contracts, including those for the sale of goods, and would apply to product supply agreements. It is important for businesses to ensure that these agreements are carefully drafted to protect their interests and to comply with applicable state and federal laws. An attorney can help draft or review a product supply agreement to ensure it meets legal requirements and adequately addresses potential risks.