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Negotiating supplier contracts
Once you have decided to do business with a supplier, it is a good idea to document the terms of trade in a written contract. Written agreements with suppliers minimise disagreements about each party's rights and responsibilities.
Suppliers often have their own written agreements but, if they don't, we recommend establishing them yourself. Written agreements document all the specific details, such as what you want, what you'll get, how much you'll pay and when.
Supplier agreements cover such issues as:
- supply conditions, including volume, price, discounts, ordering periods, take or pay and delivery times
- payment terms
- specifications of goods or services supplied (scope of goods)
- warranty periods for defective goods or services
- limited liability (risk of loss or damage)
- intellectual property
- dispute resolution
- termination and exclusion clauses.
Make sure a lawyer experienced in supply agreements and terms of trade reviews any documents before you sign and begin any transactions.
Disputes with suppliers
Deal with the dispute promptly. If communication with the supplier has failed, address your concerns with their head office or seek advice from your solicitor or business adviser.
- Visit the Australian Competition and Consumer Commission (ACCC) website for more information about your rights and responsibilities.
- Learn more about resolving disputes at the Queensland Civil and Administrative Tribunal (QCAT) website.
- Find out about negotiating successfully.
- Read how to communicate effectively for business.
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