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 Washington State, 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 methods, payment terms, and exclusivity clauses. They may also include provisions for the return of defective or nonconforming goods, as well as unsold goods. The Uniform Commercial Code (UCC), as adopted by Washington State, governs transactions involving the sale of goods, and these agreements must comply with the relevant UCC provisions. Additionally, Washington State law requires that such contracts be made in good faith and with fair dealing. It is advisable for businesses to have an attorney review or draft a product supply agreement to ensure that it meets all legal requirements and adequately protects their interests.