A template for the procurement contract, with placeholders for negotiated terms and conditions
This Procurement Contract (“Agreement”) is made and entered into as of [Insert Date], by and between:
Party A (the “Buyer”)
Name: [Buyer’s Full Legal Name]
Address: [Buyer’s Address]
Phone: [Buyer’s Phone Number]
Email: [Buyer’s Email Address]
AND
Party B (the “Supplier”)
Name: [Supplier’s Full Legal Name]
Address: [Supplier’s Address]
Phone: [Supplier’s Phone Number]
Email: [Supplier’s Email Address]
Each of the above parties is hereinafter referred to individually as a “Party” and collectively as the “Parties.”
1. Recitals
WHEREAS, the Buyer wishes to procure certain goods/services from the Supplier, as set forth herein, and
WHEREAS, the Supplier agrees to provide the goods/services as described below in accordance with the terms and conditions set forth in this Agreement.
2. Scope of Agreement
The Supplier agrees to provide the following goods/services to the Buyer, as detailed below:
| Item Number | Description of Goods/Services | Quantity | Unit Price | Total Price | Delivery Date |
|---|---|---|---|---|---|
| [Item #1] | [Description of the good or service] | [Qty] | [Price] | [Total Price] | [Delivery Date] |
| [Item #2] | [Description of the good or service] | [Qty] | [Price] | [Total Price] | [Delivery Date] |
| [Item #3] | [Description of the good or service] | [Qty] | [Price] | [Total Price] | [Delivery Date] |
3. Contract Price and Payment Terms
The Buyer agrees to pay the Supplier the total amount of [Total Contract Value], which is derived from the total cost of the goods/services listed above.
| Payment Milestone | Amount | Due Date | Payment Method |
|---|---|---|---|
| Initial Deposit | [Amount] | [Deposit Due Date] | [Payment Method] |
| Progress Payments | [Amount] | [Due Date] | [Payment Method] |
| Final Payment Upon Delivery | [Amount] | [Due Date] | [Payment Method] |
4. Delivery Terms
The Supplier agrees to deliver the goods/services as follows:
| Item | Delivery Address | Expected Delivery Date | Shipping/Delivery Terms |
|---|---|---|---|
| [Item #1] | [Delivery Address] | [Delivery Date] | [Shipping Terms: FOB, CIF, etc.] |
| [Item #2] | [Delivery Address] | [Delivery Date] | [Shipping Terms: FOB, CIF, etc.] |
| [Item #3] | [Delivery Address] | [Delivery Date] | [Shipping Terms: FOB, CIF, etc.] |
5. Performance Standards and Service Levels
| Performance Metric | Target/Standard | Penalty for Non-Compliance |
|---|---|---|
| [Metric #1] | [Standard] | [Penalty for Non-Compliance] |
| [Metric #2] | [Standard] | [Penalty for Non-Compliance] |
| [Metric #3] | [Standard] | [Penalty for Non-Compliance] |
- The Supplier must meet these performance standards as outlined. Any failure to comply with these standards will result in the penalties described above.
6. Term of Agreement
This Agreement shall commence on [Insert Start Date] and shall remain in effect until [Insert End Date or Term], unless terminated earlier as provided herein.
7. Termination Clause
Either Party may terminate this Agreement for any of the following reasons:
- Material Breach: If any Party fails to perform their obligations under this Agreement and does not cure such failure within [X] days after receiving written notice of breach.
- Mutual Agreement: If both Parties mutually agree to terminate the contract in writing.
- Force Majeure: In the event of circumstances beyond the control of either Party, such as natural disasters or war, which prevent the performance of obligations.
Upon termination, the Supplier agrees to provide a final invoice for all outstanding payments due to the Supplier, and the Buyer agrees to pay such amounts in accordance with the payment terms specified above.
8. Confidentiality
Both Parties agree to keep confidential any proprietary or sensitive information exchanged during the term of this Agreement, including but not limited to pricing, business strategies, and customer information. This confidentiality obligation shall remain in effect for [X] years after the termination of this Agreement.
9. Warranties and Representations
- Supplier’s Warranty: The Supplier warrants that the goods/services will meet the specifications agreed upon in this contract and will be free from defects in material or workmanship for a period of [X] months/years from the delivery date.
- Buyer’s Warranty: The Buyer warrants that it has the legal authority to enter into this Agreement and will perform its obligations in good faith.
10. Indemnity and Liability
- Indemnity by Supplier: The Supplier shall indemnify and hold harmless the Buyer against any claims, damages, or liabilities arising from the Supplier’s failure to meet the terms of this Agreement, including any defects in the goods/services provided.
- Limitation of Liability: Neither Party shall be liable for any indirect, incidental, or consequential damages arising out of this Agreement.
11. Governing Law and Dispute Resolution
This Agreement shall be governed by and construed in accordance with the laws of [Insert Jurisdiction].
In the event of any dispute, the Parties agree to attempt to resolve the dispute through negotiation. If negotiation fails, the dispute will be resolved through [Arbitration/Mediation] under the rules of [Insert Arbitration/Mediation Organization].
12. Miscellaneous Provisions
- Force Majeure: Neither Party shall be held liable for failure to perform due to events beyond their reasonable control, including but not limited to natural disasters, strikes, or war.
- Amendments: Any amendments to this Agreement must be made in writing and signed by authorized representatives of both Parties.
- Assignment: Neither Party may assign or transfer this Agreement without the written consent of the other Party.
13. Signatures
IN WITNESS WHEREOF, the Parties hereto have executed this Procurement Contract as of the date first above written.
For Buyer:
Signature: ____________________________
Name: _______________________________
Title: _______________________________
Date: _______________________________
For Supplier:
Signature: ____________________________
Name: _______________________________
Title: _______________________________
Date: _______________________________
Conclusion:
The Procurement Contract Template serves as a formal and comprehensive document to capture the terms and conditions negotiated between the Buyer and the Supplier. By including placeholders for negotiated prices, delivery terms, payment schedules, and other critical elements, this template allows for the creation of a contract that reflects the specifics of the SayPro Monthly January SCMR-1 Bid Negotiation and ensures both Parties are clear on their obligations and expectations.
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