JEEKSSHIRE 24 | Legal

JEEKSSHIRE 24 | Legal

Supply agreement

Supplying goods to another business or buying raw materials, components or products in batches for your own? Describe the relationship in your own words — the AI will clarify the goods, specifications, delivery schedule, acceptance and payment and prepare a draft supply agreement under the law of the selected country, with [FILL IN: …] fields instead of anything unknown.

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Supply agreement · Legal

What the AI asks about the supply

The assistant identifies the document type from your description and, before drafting, collects the essential inputs: who the supplier and buyer are — companies or sole traders — and what the buyer needs the goods for; what is supplied, in what range and quantity; whether it is a single batch or deliveries under specifications throughout the term; price, currency, taxes, prepayment or deferred payment; delivery periods and method and, if the goods cross a border, the delivery terms; and the language of the document. It asks up to six related questions per turn and does not repeat questions already answered. Details from a saved party profile are copied word for word, and unknown data is never invented: turn on “Draft with fillable fields” and you get a draft right away, with [FILL IN: …] markers and a “Needs to be completed” list.

How supply differs from an ordinary sale

Supply is a sale between businesses: the supplier delivers goods that the buyer uses in its business rather than for personal or household needs. Some legal systems, such as Russia's, treat it as a distinct type of sales contract; elsewhere the same relationship is documented as a commercial sale or a framework supply agreement. The agreement usually runs for a long time, and the specifics go into annexes: specifications set the name, quantity, price and timing of each batch, while the schedule or the buyer's shipping instructions say when and to whom to ship. If delivery periods are not agreed, some laws assume equal batches over time, so it is better to spell out the schedule. Choose your side before drafting. A buyer cares about deadlines, making up shortfalls, acceptance of quantity and quality and replacement of defective goods. A supplier cares about deferred payment with a credit limit, risk passing on shipment, the deadline for claims and limits of liability. Commercial terms suggested by the AI are shown separately under “Proposed terms — to be agreed” and are never presented as agreed.

Acceptance, delivery terms and layout

Acceptance is usually split into checking quantity and completeness when a batch arrives and checking quality within an agreed period, with a discrepancy report and a call for the supplier's representative. In cross-border supply the delivery term is often expressed as an Incoterms rule with a named place and the edition of the rules, such as FCA, CPT or DAP: it allocates costs and risk but does not decide when title passes, so that is set out separately. Once there is enough information, Legal looks up the requirements of the selected country's law on its official legal portals and only then drafts: city and date under the title, an opening paragraph naming the parties, sections such as “1. Subject of the agreement”, clauses “1.1”, and party details and signatures at the end. A reference to a legal provision stays in the legal notes only if the full text of the source was retrieved. The finished draft opens in the editor, where you can amend it, sign it and save it as PDF, DOCX, ODT, RTF, HTML, MD or TXT.

Sample structure of a supply agreement

Sample sections and wording that make the draft easy to check. This is not a ready-made form: the clauses depend on the goods, the delivery arrangements, the status of the parties and the applicable law.

  1. Supply Agreement No. [FILL IN: number] · [FILL IN: city], [FILL IN: date]
  2. Opening: [FILL IN: name of the supplier], hereinafter the “Supplier”, and [FILL IN: name of the buyer], hereinafter the “Buyer”, have entered into this agreement as follows.
  3. 1. Subject of the agreement — 1.1. The Supplier undertakes to deliver, within the agreed periods, goods for use in the Buyer's business and to transfer ownership of them to the Buyer, and the Buyer undertakes to accept and pay for them. 1.2. The name, range, quantity, price and delivery time of each batch are agreed in specifications: [FILL IN: procedure for agreeing specifications].
  4. 2. Delivery periods and procedure — 2.1. The goods are delivered in batches [FILL IN: schedule or delivery periods, procedure for shipping instructions]. 2.2. Delivery terms: [FILL IN: delivery basis, place, Incoterms edition for cross-border supply].
  5. 3. Packaging, containers and labelling; shipping documents for each batch
  6. 4. Acceptance of quantity and quality — inspection periods, discrepancy report, calling the Supplier's representative, replacement of defective goods
  7. 5. Shortfalls and making them up, early delivery, transfer of title and risk of accidental loss
  8. 6. Price and payment — 6.1. The price is set [FILL IN: in the specification or by price list, currency, tax]. 6.2. Payment: [FILL IN: prepayment or deferred payment, deadline, credit limit].
  9. 7. Liability — penalties for late delivery and late payment, shortfalls and defective goods; force majeure
  10. 8. Claims procedure, governing law and dispute resolution · 9. Term and termination · 10. Party details and signatures

Essential and important terms

Before signing, make sure the draft answers every question. Which of them are mandatory depends on the country's law and the delivery arrangements:

Common mistakes in a supply agreement

Limitations

Drafting a supply agreement with legal research is available on Plus ($5 per month) and Pro ($10 per month); Free keeps the chat, editor, export, party profiles and the local clause check. The draft is a working version to be checked, not a legal opinion: Legal does not guarantee that the agreement will be held valid. If a provision is not confirmed by the full text of an official source, this is stated in the draft's limitations. Show cross-border contracts, purchases under special rules such as public procurement, and large long-term supply deals to a lawyer.

Check your own supply agreement in Legal

Received a draft from the other party? Upload it as PDF, DOCX, TXT or HTML up to 15 MB (recognise a scan first and compare it with the original) and run a contract review. In “Whose interests are we reviewing?” choose “Seller” if you are the supplier, or “Buyer”: the AI will find up to 30 material issues — for example, acceptance without explicit consent, unilateral price changes, penalties for one party only or a missing dispute clause — quote the clauses, compare them with provisions from official sources and suggest draft edits. Free includes a local check of twelve typical clauses without legal research.

Review a supply agreement ↗

Questions about supply agreements

How is a supply agreement different from a sales agreement?

A supply agreement is a form of sale for business relationships: the goods are bought for business rather than personal use, deliveries usually come in batches throughout the term, and each batch is set out in a specification. Russian law, for example, devotes a separate section of the Civil Code chapter on sales to supply. If you are selling an item once, including to a consumer, a sales agreement is the better fit.

Can I draft a framework supply agreement with specifications?

Yes. Explain that the range, quantity, price and timing of each batch will be agreed in specifications or orders. The AI will set out how they are agreed and linked to the agreement, and will mark unknown values with [FILL IN: …] fields.

Is the draft suitable for cross-border supply?

State the parties' countries, the delivery basis and Incoterms edition, the currency and the governing law, and the AI will reflect them in the draft. Customs and currency rules, and whether international treaties such as the 1980 Vienna Convention on Contracts for the International Sale of Goods apply, depend on the parties' countries, so be sure to show a cross-border contract to a lawyer.

Will the AI invent company details, prices or volumes?

No. The model is prohibited from inventing names, addresses, bank and registration details, dates and amounts. Anything unknown is marked with [FILL IN: …] fields and listed under “Needs to be completed”. Saved party profiles are inserted word for word.

Will the draft cite articles of law?

Only if the requirement is confirmed by an official source whose full text was retrieved. Otherwise the reference is not used, and the draft's limitations say plainly that the source was not verified. The AI does not make up article numbers.

How do I revise the draft?

Write in the same conversation what to change — Legal keeps the agreed terms and fixes what you asked for. The draft also opens in the editor, where you can edit it by hand, sign it and save it in the format you need.

Can I create an invoice or an addendum for this agreement?

Yes. Document creation offers thirteen document types, including an invoice, an act, a contract addendum and a claim letter. For an act or an addendum — for example, one changing the price or the delivery schedule — select the original agreement in the “Basis document” field.

How much does drafting cost?

Drafting with legal research is available on Plus ($5 per month) and Pro ($10 per month). A contract you received can be checked for typical clauses on Free as well, using the local check.

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