Preferred Supplier Agreement Template for Switzerland

A comprehensive commercial agreement governed by Swiss law that establishes a preferred supplier relationship between a customer and a supplier. The agreement sets out preferential terms for the supply of goods or services, including pricing mechanisms, ordering processes, quality requirements, and performance standards. It provides a framework for ongoing supply arrangements while ensuring compliance with Swiss commercial law, particularly the Swiss Code of Obligations, and incorporates relevant regulatory requirements for specific industries. The agreement typically includes detailed schedules for operational matters and may be structured to accommodate multiple jurisdictions while maintaining Swiss law as the governing law.

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What is a Preferred Supplier Agreement?

This document template is designed for situations where a company wishes to establish a long-term, preferential supply relationship with a key supplier under Swiss law. A Preferred Supplier Agreement is particularly valuable when a customer wants to secure favorable terms, guaranteed supply, and preferential treatment from a supplier while maintaining flexibility in ordering volumes. The agreement typically includes comprehensive commercial terms, pricing structures, service levels, and operational procedures. It's especially relevant for businesses operating in Switzerland or those choosing Swiss law for its reliability and well-established commercial jurisprudence. The document addresses key aspects such as exclusivity (if applicable), minimum purchase commitments, performance metrics, and risk allocation, while ensuring compliance with Swiss commercial law principles. This template is adaptable across various industries and can be customized to accommodate specific supply arrangements while maintaining its core structure under Swiss law.

What sections should be included in a Preferred Supplier Agreement?

1. Parties: Identification and details of the supplier and customer entities entering into the agreement

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Defined terms used throughout the agreement

4. Appointment and Scope: Formal appointment of supplier and scope of supply arrangement, including any preferred or exclusive status

5. Ordering Process: Procedures for placing and accepting orders, including any minimum order requirements

6. Pricing and Payment: Pricing structure, payment terms, invoicing requirements, and any volume-based discounts

7. Delivery and Performance: Delivery terms, timeframes, and performance standards

8. Quality Requirements: Quality standards, specifications, and quality control procedures

9. Warranties: Supplier warranties regarding products/services and general business conduct

10. Term and Termination: Duration of agreement and circumstances for termination

11. Liability and Indemnification: Allocation of risks and responsibilities between parties

12. Confidentiality: Protection of confidential information exchanged between parties

13. Force Majeure: Provisions for handling events beyond parties' reasonable control

14. Governing Law and Jurisdiction: Swiss law as governing law and jurisdiction for dispute resolution

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Preferred Supplier Agreement?

1. Intellectual Property Rights: Required when supply involves licensed technology, software, or branded products

2. Data Protection: Necessary when personal data processing is involved in the supply relationship

3. Insurance: Include when specific insurance requirements are needed based on supply nature

4. Environmental Compliance: Important for supplies involving environmental considerations or hazardous materials

5. Import/Export Compliance: Required for international supply relationships

6. Service Levels: Include when specific performance metrics and service levels need to be maintained

7. Business Continuity: Important for critical supplies or services

8. Anti-Corruption Compliance: Required for international relationships or high-risk sectors

9. Subcontracting: Include when supplier may need to subcontract certain obligations

What schedules should be included in a Preferred Supplier Agreement?

1. Schedule 1 - Products/Services Description: Detailed specification of products or services to be supplied

2. Schedule 2 - Pricing Schedule: Detailed pricing structure, including any volume discounts or special pricing arrangements

3. Schedule 3 - Service Levels and KPIs: Detailed performance metrics and measurement criteria

4. Schedule 4 - Technical Specifications: Detailed technical requirements and standards

5. Schedule 5 - Order Form Template: Standard form for placing orders under the agreement

6. Schedule 6 - Contact Details: Key contacts and escalation matrix for both parties

7. Schedule 7 - Quality Control Procedures: Detailed quality assurance and control processes

8. Appendix A - Compliance Requirements: Specific regulatory or compliance requirements applicable to the supply

9. Appendix B - Security Requirements: Information security and physical security requirements if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use

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