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Inventory Supply Agreement

October 4, 2012 by agribusiness in General agreements with 0 Comments
The companies who sell products or receive supplies must have an inventory supply agreement. The first step in drafting an agreement is an evaluation of the items that the company intends to buy. For this purpose, the company orders the sample products so as to ensure that they meet the quality standards of the company. Once the purchaser company decides as to avail the products after evaluation, the next important step is to negotiate an inventory supply agreement.

The agreement outlines the payment terms and the available discounts for the inventory supplies. The agreement also includes other detailed information such as terms and conditions of the return of goods, conditions for the exchange of goods and the validity period of the agreement etc.

The inventory supply agreement is a prerequisite for preparing a purchase order. The purchase order is a confirmation of the purchase of the inventory items as per the conditions of the mutual contract and it outlines the list of materials to be purchased and the shipping address.

Inventory Supply Agreement

Inventory Supply Agreement

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