Sale or Return Supply Agreement Template

This Long Term Supply Agreement (Sale or Return) is designed for use in situations in which the buyer (or customer) is purchasing multiple consignments of goods on a long term basis for resale. 

This template is intended for use only where the supplier and buyer are based in the UK and the goods are to be delivered in the UK. For any other case, you should take professional legal advice as to the terms of agreement that will be suitable for your circumstances. 

This document incorporates provisions for liability and indemnity to protect both parties. In certain circumstances, the supplier is required to indemnify the buyer (for example, where a third party takes legal action against the buyer where the goods sold by the supplier breach that third party's intellectual property rights). In other circumstances, the buyer may be required to indemnify the supplier (where, for example, it has sold the goods under a particular brand name or trade mark and a third party has taken legal action against the supplier as a result). Beyond the scope of the indemnity provisions, liability is tightly but fairly limited for both parties.

Other provisions in this template include a range of standard or "boilerplate" clauses designed to provide more certainty and clarity from both practical and legal perspectives.

In addition to regulating the standard transactions between one business and another, the buyer has the option to return goods to the supplier within a defined period in exchange for a full refund. The sale or return provisions should not be confused with provisions governing defective or incorrect goods. Sale or return applies specifically to undamaged, correct consignments of goods which the buyer simply does not want to keep.

The terms of this agreement are written with relationships between manufacturers and buyers in mind. An alternative version of this document, designed for suppliers who themselves source goods from other parties, is available.

Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.

This Long Term Supply Agreement (Sale or Supply) contains the following clauses:

1. Definitions and Interpretation
2. Supply of Goods
3. Specification of the Goods
4. Manufacture and Delivery of the Goods
5. Defective Goods
6. Sale or Return
7. Price and Payment
8. Expert Determination
9. Confidentiality
10. Indemnity
11. Limitation of Liability
12. Force Majeure
13. Term and Termination
14. Effects of Termination
15. No Waiver
16. Further Assurance
17. Costs
18. Set-Off
19. Assignment and Sub-Contracting
20. Relationship of the Parties
21. Non-Solicitation
22. Third Party Rights
23. Notices
24. Entire Agreement
25. Counterparts
26. Severance
27. Dispute Resolution
28. Law and Jurisdiction

And the following schedules:

1. The Goods
2. The Specification
3. [Sale or Return Payment Schedule]

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” link 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.