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Sales and commercial

Supply agreement template

Supply agreement: A supply agreement is a long-term contract for a supplier to provide goods to a buyer on agreed terms, with orders placed over time rather than in one sale.

Last reviewed 6 November 2026 · 7 clauses · General guidance, not legal advice

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When to use a supply agreement

  • Ongoing supply of components or ingredients
  • Framework purchasing with forecasts
  • Private-label or contract supply

Supply agreement template: clause-by-clause outline

Sample starting wording for each clause. Replace the text in [brackets] with your details.

  1. Orders

    The Buyer may place purchase orders for Products. Each accepted order forms a contract on these terms.

  2. Forecasts

    The Buyer will provide a non-binding [6]-month rolling forecast each month.

  3. Pricing

    Prices are set out in Schedule 1 and may be reviewed [annually] with [60] days’ notice.

  4. Lead times and delivery

    The Supplier will deliver within [lead time] of order acceptance.

  5. Quality

    Products will meet the specifications in Schedule 2 and applicable laws.

  6. Supply continuity

    The Supplier will give [90] days’ notice of any discontinuation and offer a last-time buy.

  7. Term

    This Agreement lasts [3] years and renews for [1]-year periods unless either party gives [6] months’ notice.

What to check before you sign

  • Is there a minimum purchase commitment?
  • How are price increases handled?
  • What happens if the supplier discontinues a product?

How to send a supply agreement for e-signature

  1. Draft or upload it. Use the outline above with your own wording, upload an existing document, or save it as your organisation’s template.
  2. Check it against your playbook. Points outside your positions are flagged, and approval rules route it to Legal when needed.
  3. Send it by email. Signers get a plain-language review and a secure link, sign on any device in the order you set, and can suggest changes as tracked changes.
  4. Keep the signed PDF. Everyone receives it with a certificate of completion, and key dates go to Upcoming with reminders.

Supply agreement template: frequently asked questions

Are forecasts binding?

Only if the contract says so. Many supply agreements make near-term forecasts partly binding to support production planning.

What is a last-time buy?

A final chance to order a product before it is discontinued, so the buyer can stock up.

Is an electronically signed supply agreement legally binding?

In most countries, yes. E-signatures are recognised for commercial contracts under laws such as the ESIGN Act (US), eIDAS (EU), the Electronic Communications Act (UK) and the Information Technology Act (India). econtracts.ai adds a certificate of completion with each signer’s identity check and a fingerprint of the signed content.

Can I get a supply agreement I received reviewed?

Yes. Upload it to econtracts.ai and you get a plain-language review: key dates, money and points to check, each quoting the clause it comes from.

Related contract templates

This outline is a starting point for discussion, not legal advice, and it is not a complete contract. Laws differ by country and sector; have a qualified lawyer review contracts that matter.