Five clauses to find before you sign a supplier contract
Price and quantity are the parts you negotiated. The five clauses that decide who pays when an order goes wrong are usually on page six.
This is the written version of our ten-minute talk. You negotiated the price, the quantity and the delivery date. Those are on page one. The clauses below are usually further back, and they decide who pays when something goes wrong.
1. Limitation of liability
Look for a cap on what the supplier owes you if they get it wrong. A cap of “fees paid in the last month” may be far less than a late shipment costs you.
2. Warranty and remedies
What do they promise about the goods, for how long, and is a replacement your only option? “Repair or replace” can mean no refund at all.
3. Price changes
Some agreements let the supplier raise prices with notice. Check how much notice, how often, and whether you can leave if you don’t accept.
4. Renewal and termination
Automatic renewals with a short window to cancel are common. Put the cancellation date in your calendar the day you sign.
5. Where disputes go
A clause can send a fight to arbitration or to a court in another state. That choice can decide whether a claim is worth bringing at all.
This guide is general information, not a review of your contract. Clause wording varies, and so does what’s worth asking for.