Purchase Requirement Agreement Template

Download this free Purchase Requirement Agreement Template both in text as well as PDF format to quickly prepare your own agreement.

A purchase requirement agreement is a legal contract between a buyer and a supplier, ensuring that the buyer will purchase as many units as the supplier can supply. This agreement binds the buyer from purchasing the specified goods from other suppliers and obligates the supplier to meet the buyer’s demands. This contract is crucial for both parties, providing security and assurance in their business relationship.

Importance of Purchase Requirement Agreement

1. Exclusive Supply Assurance:
   • Guarantees the buyer a consistent supply of goods.
   • Secures the supplier a steady customer.
2. Legal Obligations:
   • Both parties are legally bound to adhere to the agreement.
   • Breach of the agreement can lead to legal consequences.
3. Market Stability:
   • Ensures market stability by preventing the buyer from seeking alternative suppliers.
   • Encourages suppliers to maintain quality and reliability.

Useful Tips for Writing a Purchase Requirement Agreement

1. Include Detailed Party Information:
   • Clearly state the names and business details of both the buyer and the supplier.
2. Specify the Goods and Quantity:
   • Detail the types of goods involved and the quantities the supplier agrees to provide.
3. Outline Terms and Conditions:
   • Clearly state the terms of the agreement, including delivery schedules, payment terms, and quality standards.
4. Set Price and Payment Terms:
   • Specify the agreed-upon prices for the goods and the payment schedule.
5. Include Breach of Agreement Clause:
   • Detail the consequences if either party fails to adhere to the agreement.
6. Legal Consultation:
   • Consider involving a legal professional to ensure the contract meets all legal requirements.

Free Purchase Requirement Agreement Template {PDF Form}

Here is a preview of a Free Fillable PDF of the Purchase Requirement Agreement,

Here is the download link for this Purchase Requirement Agreement,

Sample Purchase Requirement Agreement

Here’s a sample template to help you draft a purchase requirement agreement:

PURCHASE REQUIREMENT AGREEMENT

This Agreement is made and entered into as of [Date], by and between:

Buyer: [Buyer’s Full Name]
[Buyer’s Company Name]
[Buyer’s Address]
[City, State, ZIP Code]

Supplier: [Supplier’s Full Name]
[Supplier’s Company Name]
[Supplier’s Address]
[City, State, ZIP Code]

WHEREAS, the Buyer wishes to purchase, and the Supplier agrees to supply, the goods as described herein;

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties hereto agree as follows:

1. Goods to be Supplied:
   • Description of Goods: [Detailed description of the goods]
   • Quantity: [Specify the minimum and maximum quantities]
2. Term and Duration:
   • This agreement shall commence on [Start Date] and shall continue until [End Date] or until terminated by either party in accordance with the terms of this Agreement.
3. Pricing and Payment:
   • Price per Unit: [Specify price]
   • Payment Terms: [Detailed payment terms, e.g., net 30 days]
4. Delivery Schedule:
   • Delivery Dates: [Specify delivery schedule]
   • Delivery Locations: [Specify locations]
5. Exclusivity:
   • The Buyer agrees not to purchase the goods specified in this Agreement from any other supplier.
6. Breach of Agreement:
   • In the event of a breach of this Agreement by either party, the non-breaching party shall have the right to terminate this Agreement and seek legal remedies.
7. Termination:
   • This Agreement may be terminated by either party with [Number] days written notice to the other party.
8. Governing Law:
   • This Agreement shall be governed by and construed in accordance with the laws of [State/Country].
9. Entire Agreement:
   • This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements, understandings, and negotiations.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

Buyer:

---

[Buyer’s Full Name]
[Buyer’s Title]
[Date]

Supplier:

---

[Supplier’s Full Name]
[Supplier’s Title]
[Date]

By following these guidelines and using the sample template, you can create a comprehensive and legally binding purchase requirement agreement, ensuring that both the buyer and supplier are clear on their obligations and the terms of their business relationship.