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Thursday, 08 April 2010 04:51

Contract for Sale of Goods With Output or Requirements

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1. Introduction. Agreement made [date] between [name], with principal offices at [address] (Seller), and [name], with principal offices at [address] (Buyer).

2. Sale-Seller's Output. Seller will sell to Buyer all the [items] that Seller can produce during the term of this Agreement by the normal use of its facilities subject to a minimum of [amount] and a maximum of [amount].

[Alternative Paragraph]

2. Sale-Buyer's Requirements. Seller will sell to Buyer all the [items] that Buyer requires for use in its operations during the term of this Agreement, subject to a minimum of [amount] and a maximum of [amount].

3. Variable Purchase Price. The purchase price of the goods is ---------- dollars ($----------) per unit. Seller may, by giving Buyer at least [number] days' prior written notice, increase the purchase price for undelivered goods, but by not more than ---------- percent (----------%) in any [number]-month period.

4. Delivery-Installments. Seller will deliver the goods to Buyer at Buyer's plant located at [address] twice monthly, on the [number] and [number] day of each month. If either of those days is a nonbusiness day, delivery shall be made on the next following business day.

5. Payment. Buyer will pay for each delivery of the goods no later than [number] days following delivery.

6. Exclusive Sale. During the term of this Agreement, Seller will not sell any of the goods to anyone, other than Buyer. Should Seller sell any goods in breach of the Agreement, Buyer, at its option, may either terminate or continue this Agreement. In either instance, Buyer shall retain all other rights and remedies to which Buyer is entitled, whether in law or equity.

7. Seller's Remedies. Should Buyer fail to pay for the goods in accordance with the provisions of this Agreement, Seller, at its option, may either terminate or continue this Agreement. In either instance, Seller shall retain all other rights and remedies to which Seller is entitled, whether in law or equity.

8. Excuse for Delay or Failure of Delivery. Seller will not be deemed to have breached this Agreement if there is a delay in the delivery of the goods or a failure to deliver the goods provided the delay or failure is caused by accident, strike, or other occurrence beyond Seller's control.

9. Term of Agreement. The term of this Agreement shall commence on [date] and terminate on [date], unless changed by the written agreement of the parties.





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