Product Supply Agreement Law and Legal Definition

A product supply agreement is an agreement between a supplier and a buyer for supply and purchase of products. The agreement specifies the terms upon which the parties agree to supply and purchase products from each other. The agreement makes the buyer and seller understand their responsibilities and obligations under the agreement. The supplier supplies the products and the buyer purchases these products for business purposes according to the terms agreed under the product supply agreement

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The agreement also provides the consequences that the parties might face in the event of breach. Both the parties should ensure that their needs and requirements are clearly stated in the agreement by carefully reviewing the product supply agreement.