Commercial Contract for Customers
Whether you are purchasing goods, services, or software, we support our clients throughout every stage of their purchasing requirements. We understand our clients’ need as customers within a supply chain to operate on formal supply contracts to obtain price discounts and rebates, security of supply, preferential ordering and delivery timeframes, and potentially exclusivity of supply. Our experience with intellectual property rights and development services means we can ensure that your supply contracts grant you the necessary and relevant rights to the products being developed for you.
A pro-customer supply contract will contain additional terms which benefit the customer, including:
- An obligation on a supplier to maintain minimum stock supplies to guarantee and quickly meet a customer’s order;
- An obligation on a supplier to maintain and provide evidence of industry accreditations or safety certifications of products;
- Attractive credit and payment terms;
- Warranties from manufacturers or suppliers as to the quality of the goods or services being provided;
- Intellectual property licences or an assignment of such rights;
- Restricted ability for suppliers to review or increase the price of the goods or services; and
- Generous (or no) limitations of the supplier’s liability for any loss or damage they cause in relation to supplying the goods or services.
Our Customer Commercial Contract Experience
- Outsourced Supply Agreement. We acted for a large construction company with their outsourced supply agreement. As the customer, our client wanted to ensure that third parties it engaged with to provide goods and services to it were procured on a unified contractual basis. Further, we also prepared a simplified Services Contract for smaller procurements.
- Supply of goods. We prepared purchase terms for the supply and purchase of lateral flow test products and kits. The supply of the goods is the start of a larger supply chain and therefore our client needed to ensure that its orders for the supply of the goods were managed to alleviate risks further in the supply chain and that it could meet its delivery deadlines and product volumes ordered by its customers.
- Supply of Services (recycling services). We act for a national recycling provider and have assisted in the drafting and negotiating of various service contracts with large regional recycling and waste management suppliers.
- Consultancy Services Agreement. We prepared a pro-customer consultancy services agreement governing the provision of regulatory compliance and consultancy services in the biocidal and pesticide sector.
- Software and Services. We have acted for a variety of clients procuring and implementing software and software services within their business including bespoke software development. For more information on our IT services see our pages here.
Customer Contracts FAQs
Why should a customer seek to operate on its own terms?
For a business that sources a range of goods and services from various suppliers, operating on its own terms enables the business to harmonise its operations, and ensure a consistent standard of service delivery is achieved. This can help alleviate the administrative burden of monitoring numerous contracts which may have differing payment terms, delivery timescales and service levels.
How should a customer operate on its own terms?
Customers can attach to their purchase order form (or reference by hyperlink to their website) and their standard terms and conditions when placing an order with a supplier. However, customers seeking to operate on their own terms and conditions should ensure such terms are incorporated into the contract. Many suppliers will wish to operate on their own standard terms. A customer must therefore take steps to ensure that their terms take precedence.
What should a customer do if a supplier operates on its own terms?
For terms and conditions to govern the contractual arrangement between a business and its suppliers, must be incorporated into the contract. Businesses, therefore, need to implement processes that bring the terms and conditions to the attention of the other party(s), and ensure that such terms are accepted by the other party(s).
With many businesses now operating by attaching their standard terms and conditions to their purchase order forms or quotations, or by including a hyperlink to their terms on their website, the risk of failing to properly incorporate terms has increased. This should be monitored regularly to address the risk such approach poses. Further information on incorporating terms and conditions and mitigating risk can be found here.
What terms should a customer consider including in its own contracts?
Pro-customer contracts should contain terms governing the supply of the goods or services that the customer is purchasing, such as the description and quality of the goods or services being supplied, the time of delivery, any service levels and payment terms.
Pro-customer terms should reflect how the customer’s business operates such as delivery timescales that accommodate the customer’s stock rotation schedules, delivery methods that are time and cost-effective for the customer, and credit and payment terms which complement the customer’s payment runs.
Meet Our Specialists
Home-grown or recruited from national, regional or City firms. Our specialists are experts in their fields and respected by their peers.
Carla is a Partner and Head of our Commercial Team
Mohammed Akeel Latif
Akeel is a Partner and Head of the Corporate Commercial Team at Myerson
Andrew is a Partner in our Corporate Commercial Team
Terry is a Senior Associate in our Corporate Commercial Team. Terry is also the Head of the Brexit Team at Myerson.
Richard is a Senior Associate in our Commercial Team
Joanna is a Solicitor in our Commercial Team
Fran is a Solicitor in our Corporate Team
Olivia is a Trainee Solicitor within our Commercial Team
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