Memorandum of Understanding: Supply of Goods Agreement
This Memorandum of Understanding (Supply of Goods Agreement) (“MOU”) is designed to be signed as a preliminary non-binding heads of terms document. The MOU
would then be followed by a binding detailed, definitive Supply of Goods Agreement under which a supplier sells goods to a business customer.
Using an MOU such as this should help prevent misunderstandings. It should also aid the process of focusing on and agreeing all of the important legal and
commercial points that need to be dealt with by the definitive, binding, Supply of Goods Agreement which is to follow the MOU.
This template contains numerous optional clauses (and alternative provisions within those clauses) from which you can select as appropriate.These include the option to require the customer to purchase the type of goods concerned exclusively from the supplier and not from any third party (i.e. on an exclusive purchase basis ) and the option to require the customer not to resell any goods which compete with the supplier's goods (i.e. on exclusive resale basis).
menu of heads of terms can serve as a convenient checklist to assist you to identify, negotiate and record in the MOU all of the points that should be
covered by the parties in a full agreement. Once both parties have agreed and signed the MOU, you can pass it to your legal advisers as your instructions
to them. Their task of drafting a definitive binding Supply of Goods Agreement should be quicker and easier if they have such a detailed MOU to work from,
and hopefully that will be reflected in lower legal fees.
Before using this MOU template, we recommend that you read the Guidance Notes on Heads of Terms, Memoranda of Understanding, Letters of Intent and Term Sheets in the Heads of Terms and Contract Formation subfolder. Those notes deal with a number of important general issues relating to all Memoranda of Understanding,
Heads of Terms, Letters of Intent, Term Sheets and similar pre-contract documents.
We have also included this MOU in the Heads of Terms and Contract Formation subfolder alongside various other types of template MOUs.
This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with
the file. It is recommended that you save the document to a location of your choice prior to viewing.