Agreement For Supply Of Goods On Credit for New Zealand

Agreement For Supply Of Goods On Credit Template for New Zealand

A comprehensive commercial agreement governed by New Zealand law that establishes the terms and conditions for the supply of goods on credit between a supplier and a customer. The document combines elements of a standard supply agreement with credit facility provisions, incorporating requirements under New Zealand's Contract and Commercial Law Act 2017, Personal Property Securities Act 1999, and Credit Contracts and Consumer Finance Act 2003. It includes detailed provisions for ordering processes, credit limits, payment terms, security arrangements, risk and title provisions, and default remedies, while ensuring compliance with New Zealand's commercial and consumer protection legislation.

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What is a Agreement For Supply Of Goods On Credit?

The Agreement For Supply Of Goods On Credit is designed for businesses operating in New Zealand that wish to establish a formal trading relationship where goods are supplied on credit terms. This document is particularly suitable for ongoing supply arrangements where the supplier extends credit facilities to trusted customers, allowing them to pay for goods after delivery within agreed timeframes. The agreement incorporates New Zealand legal requirements, including those under the Personal Property Securities Act 1999 and Credit Contracts and Consumer Finance Act 2003, providing protection for both suppliers and customers. It includes comprehensive provisions for credit assessment, security arrangements, payment terms, and default scenarios, making it suitable for businesses of various sizes and sectors that engage in regular trading relationships requiring credit facilities.

What sections should be included in a Agreement For Supply Of Goods On Credit?

1. Parties: Identifies and provides full legal details of all parties to the agreement

2. Background: Sets out the context and purpose of the agreement, including the supplier's willingness to provide goods on credit

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Supply Arrangements: Details the process for ordering goods, delivery terms, and acceptance procedures

5. Credit Facility: Establishes the credit limit, credit terms, and conditions for maintaining the credit facility

6. Payment Terms: Specifies payment obligations, including credit period, payment methods, and late payment consequences

7. Security Arrangements: Details any security required for the credit facility, including personal guarantees or charges over assets

8. Risk and Title: Establishes when risk and title in the goods passes, including retention of title provisions

9. Warranties and Representations: Sets out warranties regarding the goods and representations about credit worthiness

10. Default and Enforcement: Specifies events of default and remedies available to the supplier

11. Term and Termination: Details the duration of the agreement and circumstances for termination

12. General Provisions: Standard boilerplate clauses including notices, governing law, and dispute resolution

What sections are optional to include in a Agreement For Supply Of Goods On Credit?

1. Credit Assessment: Detailed procedures for credit checks and ongoing credit monitoring - include when dealing with new or high-risk customers

2. Returns and Refunds: Specific procedures for handling returns and issuing refunds - include for retail or consumer goods supply

3. Intellectual Property: Protection of IP rights in branded goods - include when supplying branded or proprietary products

4. Insurance: Insurance requirements for goods in transit or storage - include for high-value goods or international supply

5. Dispute Resolution: Detailed alternative dispute resolution procedures - include for high-value or complex supply arrangements

6. Privacy and Data Protection: Handling of customer data and credit information - include when collecting significant customer data

7. Force Majeure: Provisions for handling unforeseen events - include for long-term or critical supply arrangements

8. Assignment and Subcontracting: Rights to assign or subcontract obligations - include for complex supply chains or when likely needed

What schedules should be included in a Agreement For Supply Of Goods On Credit?

1. Schedule 1: Goods and Pricing: Detailed list of goods supplied and their prices, including any volume discounts

2. Schedule 2: Credit Terms: Specific credit limits, payment terms, and interest rates

3. Schedule 3: Delivery Terms: Detailed delivery requirements, timeframes, and locations

4. Schedule 4: Security Documents: Forms of security documents, including personal guarantees or charges

5. Schedule 5: Order Process: Detailed ordering procedures and requirements

6. Appendix A: Credit Application Form: Standard form for credit application and assessment

7. Appendix B: Personal Guarantee: Form of personal guarantee for directors or principals

8. Appendix C: Product Specifications: Detailed specifications for goods supplied

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 | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Wholesale Trade

Manufacturing

Retail

Construction

Agriculture

Food and Beverage

Industrial Equipment

Automotive

Electronics

Building Materials

Medical Supplies

Chemical Products

Textiles

Relevant Teams

Legal

Finance

Credit Control

Procurement

Sales

Operations

Risk Management

Treasury

Commercial

Accounts Receivable

Relevant Roles

Commercial Director

Credit Manager

Finance Director

Procurement Manager

Supply Chain Manager

Chief Financial Officer

Commercial Lawyer

Credit Controller

Accounts Receivable Manager

Sales Director

Operations Manager

Risk Manager

Treasury Manager

Business Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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