Material Supply Agreements are essential commercial contracts used to establish and govern the ongoing supply of materials between businesses in New Zealand. These agreements are particularly crucial when regular or substantial material supplies are required for business operations. A Material Supply Agreement typically includes detailed provisions covering material specifications, quality standards, delivery terms, pricing mechanisms, and risk allocation. The document ensures compliance with New Zealand's regulatory framework, including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant industry-specific regulations. It is designed to provide clarity and certainty in commercial relationships while offering flexibility for long-term supply arrangements. The agreement is particularly valuable for businesses requiring consistent material quality, reliable supply chains, and clear commercial terms, while incorporating necessary protections for both suppliers and purchasers.
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1. Parties: Identification and details of the supplier and purchaser, including registered addresses and company numbers
2. Background: Context of the agreement, relationship between parties, and general purpose of the supply arrangement
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Supply Obligations: Core obligations of the supplier to provide materials, including ordering process and delivery terms
5. Quality Requirements: Specifications, standards, and quality assurance requirements for the materials
6. Price and Payment: Pricing structure, payment terms, invoicing requirements, and any price adjustment mechanisms
7. Delivery and Risk: Delivery terms, transfer of risk, acceptance procedures, and rejection rights
8. Title and Security: Transfer of title, retention of title provisions, and security interests
9. Warranties: Supplier warranties regarding materials, quality, compliance with laws, and fitness for purpose
10. Liability and Indemnity: Allocation of risks, limitations of liability, and indemnification obligations
11. Term and Termination: Duration of agreement, renewal provisions, and termination rights
12. Force Majeure: Events excusing performance and procedures for handling force majeure situations
13. Confidentiality: Protection of confidential information and trade secrets
14. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures
15. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law
1. Minimum Purchase Commitments: Used when the purchaser commits to minimum volume or value of purchases
2. Exclusivity: Include when either party has exclusive rights or obligations
3. Insurance: Detailed insurance requirements when specific coverage is necessary
4. Environmental Compliance: Include for materials with environmental implications or hazards
5. Health and Safety: Detailed health and safety obligations for hazardous materials
6. Intellectual Property: Include when materials involve patents, trademarks, or other IP rights
7. Change Control: Include for agreements requiring formal processes for changes to specifications
8. Business Continuity: Include for critical supply relationships requiring disaster recovery plans
9. Compliance with Laws: Detailed compliance obligations for regulated materials or industries
10. Storage and Handling: Include for materials requiring special storage or handling conditions
1. Schedule 1 - Material Specifications: Detailed technical specifications of materials being supplied
2. Schedule 2 - Pricing Schedule: Detailed pricing information, including unit prices and volume discounts
3. Schedule 3 - Service Levels: Performance metrics and service level requirements
4. Schedule 4 - Ordering Procedure: Detailed process for placing and fulfilling orders
5. Schedule 5 - Quality Control Procedures: Specific quality control and testing requirements
6. Schedule 6 - Delivery Locations: List of approved delivery locations and specific delivery requirements
7. Schedule 7 - Key Contacts: Contact details for key personnel from both parties
8. Appendix A - Safety Data Sheets: Safety information and handling instructions for materials
9. Appendix B - Compliance Certificates: Copies of relevant compliance certifications
10. Appendix C - Form of Purchase Order: Template purchase order form to be used
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