When forming a corporation, you may have many options available.
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Exclusive supply agreements are made between two businesses when one business sells all of its products or services to one company or buyer. A buyer may also agree to purchase all of its goods from only one seller. These agreements will often be formalized using an exclusive supply agreement. Companies might enter into these agreements to get better deals and to corner the competition. When entering into an exclusive supply agreement with another company, it is important to ensure that your agreement complies with antitrust laws and doesn’t create a monopoly. Many exclusive supply agreements won’t be in conflict with antitrust laws. When evaluating whether an exclusive supply agreement is in conflict with antitrust law, the Federal Trade Commission will look at how long the contract is in place and whether there are alternative suppliers available to address the needs of other companies.
Beyond considering the law, exclusive supply agreements should contain details about pricing, delivery, and the parties involved. Some companies might be tempted to use template supply agreements to govern these deals, but with an exclusive supply agreement, much more may be at stake. If you are dealing with a single supplier, if anything goes wrong, your business can end up losing money. If you are supplying only to one company, your entire source of income could be in jeopardy if a deal falls through, if the terms change, or if the company fails to pay you. Both parties need to take steps to protect their interests in these deals. An exclusive supply agreement contract can help.
If you are planning to enter into an exclusive supply agreement with another company or business, you’ll want to have a contract in place to govern the agreement and have a lawyer review your contract. Contact Legal Counsel, P.A. and speak to our exclusive supply agreement lawyer in Orlando, Florida who can review your contracts, help you understand compliance laws, and protect your interests. Contact us today to learn more. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
Exclusive supply agreements will generally contain information about how long the agreement is to be in force, the names of the parties entering into the agreement, and what special provisions the supplier may provide to the buyer. For example, in an exclusive supply agreement, the seller might offer a buyer better prices, additional support for services, or other incentives. It is important that the provisions of an exclusive supply agreement not conflict with governing laws, meaning that your deal cannot prevent other companies from competing with you in the market. Depending on your industry, an exclusive supply agreement may or may not be permitted. Usually, short-term exclusive supply contracts are protected from antitrust lawsuits, but every case is unique, and you may want to pass this by your exclusive supply agreement lawyer first. If you are considering entering into an exclusive supply agreement, you’ll want to have sound contracts in place and protect your rights and interests. Contact Legal Counsel, P.A. in Orlando, Florida and consult with our exclusive supply agreement lawyer who can review your contract and help you understand your rights under the law. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.
While an exclusive supply agreement can be mutually beneficial to suppliers and businesses receiving the goods, they come with a certain degree of risk. When you choose only to work with one supplier or company, you are putting all your business on that one relationship. It is important to get this relationship right from the outset. Contact Legal Counsel, P.A. and speak to our exclusive supply agreement lawyer in Orlando, Florida who can look over this contract, help you understand your rights and responsibilities, and create an agreement that will protect your interests. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.