A Supplier Rebate Agreement is essential when establishing volume-based purchasing incentives between trading partners. This document, governed by English and Welsh law, provides a framework for calculating, documenting, and paying rebates based on agreed metrics. It includes specific provisions for purchase tracking, rebate calculations, payment schedules, and dispute resolution. The agreement is particularly valuable for long-term supply relationships where regular bulk purchases occur and helps ensure compliance with UK competition and tax laws.
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1. Parties: Details of supplier and recipient of rebates
2. Background: Context of the trading relationship and rebate arrangement
3. Definitions: Key terms including Rebate Period, Qualifying Purchases, Rebate Rate
4. Rebate Calculation: Formula and methodology for calculating rebates
5. Payment Terms: Timing and method of rebate payments
6. Reporting Requirements: Purchase reporting and documentation requirements
7. Term and Termination: Duration and termination provisions
1. Audit Rights: Used when detailed verification of purchases is required
2. Confidentiality: Include when sensitive commercial information is shared
3. Force Majeure: Include for long-term arrangements
4. Change Control: For agreements where rebate terms may need adjustment
1. Rebate Calculation Examples: Worked examples of how rebates will be calculated
2. Qualifying Products: List of products eligible for rebates
3. Rebate Rates: Detailed breakdown of rates and thresholds
4. Reporting Template: Standard format for purchase reporting
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