A Raw Material Supply Agreement is essential for businesses requiring consistent supply of materials for their operations. This template, governed by Belgian law, is designed for use when establishing a formal supply relationship for raw materials between a supplier and purchaser. It incorporates key requirements under Belgian commercial law and relevant EU regulations, particularly addressing quality standards, delivery terms, pricing mechanisms, and risk allocation. The document is crucial for businesses seeking to secure their supply chain with legally enforceable terms while ensuring compliance with Belgian and EU regulatory requirements. It's particularly valuable for medium to long-term supply relationships where consistent quality and reliable delivery are essential for business operations.
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1. Parties: Identification and details of the supplier and purchaser, including registered addresses and company details
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Supply Obligations: Core obligations of the supplier regarding the supply of raw materials, including quantities and delivery schedules
5. Quality Requirements: Specifications, standards, and quality control requirements for the raw materials
6. Ordering Process: Procedures for placing and confirming orders, including lead times and minimum order quantities
7. Delivery Terms: Delivery conditions, Incoterms, packaging requirements, and transfer of risk
8. Price and Payment: Pricing structure, payment terms, invoicing procedures, and any price adjustment mechanisms
9. Title and Risk: Transfer of ownership and risk allocation between parties
10. Warranties and Quality Assurance: Supplier warranties regarding the raw materials and quality assurance processes
11. Compliance with Laws: Obligations to comply with applicable laws, regulations, and standards
12. Liability and Indemnification: Allocation of liability and indemnification obligations
13. Force Majeure: Events constituting force majeure and consequences
14. Term and Termination: Duration of the agreement and termination rights
15. Governing Law and Jurisdiction: Application of Belgian law and jurisdiction for disputes
16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Exclusivity: Used when parties agree to exclusive supply arrangements or territorial restrictions
2. Storage and Handling: Include when specific storage or handling requirements are necessary for the raw materials
3. Insurance Requirements: Detailed insurance obligations when specific coverage types or amounts are required
4. Environmental Compliance: Include for raw materials with environmental impact or specific disposal requirements
5. Safety Data Requirements: Used for hazardous materials or those requiring special safety measures
6. Intellectual Property Rights: Include when proprietary processes or technologies are involved
7. Change Control: Used when formal processes for changes to specifications or requirements are needed
8. Business Continuity: Include for critical raw materials requiring backup supply arrangements
9. Import/Export Requirements: Used for cross-border supply arrangements
10. Performance Metrics: Include when specific KPIs or performance standards are to be measured
1. Schedule 1 - Product Specifications: Detailed technical specifications of the raw materials
2. Schedule 2 - Pricing Schedule: Detailed pricing information, including any volume-based discounts
3. Schedule 3 - Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria
4. Schedule 4 - Delivery Schedule: Agreed delivery timeframes and locations
5. Schedule 5 - Safety Data Sheets: Required safety information and handling instructions
6. Schedule 6 - Key Performance Indicators: Metrics for measuring supplier performance
7. Schedule 7 - Contact Details: Key contact persons and their details for both parties
8. Schedule 8 - Form of Purchase Order: Standard form for placing orders
9. Appendix A - Compliance Certificates: Required regulatory or quality certifications
10. Appendix B - Storage Requirements: Specific storage and handling requirements
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