Ensuring Continuity of Supply

Jane LambertJane Lambert

13 July 2010

A small specialist electronic instruments manufacturer in the telecommunications industry in a local incubator relied on one of its neighbours to supply it with vital components. The manufacturer was generally satisfied with its neighbour but wanted to ensure quality and continuity of supply. It had no terms and conditions and wanted to ensure payment and manage risk should any of its products be defective.

The landlord of the incubator obtained a grant from the regional development agency which allowed the instruments manufacturer to consult me.

I drafted an agreement with the components supplier which addressed such issues as design, acceptance criteria, delivery times, pricing, payment, invoicing, warranties and dispute resolution. I designed the terms and conditions to dovetail with the components supply agreement so that it covered such matters as formation of contracts, prices, payment, remedies for non-payment, risk, termination and the usual boiler plate clauses.