Procurement Agreement

Procurement Agreement

Prepared by: [Your Name]

I. Parties Involved

A. Buyer

ForBiz
Address: Irving, TX 75038
Hereinafter referred to as the "Buyer."

B. Supplier

[Your Company Name]
Address: [Your Company Address]
Hereinafter referred to as the "Supplier."

II. Scope of Work/Description of Goods or Services

A. Goods or Services

This Agreement pertains to the procurement of premium organic fruits and vegetables for use in the Buyer’s hotel chain kitchens.

B. Specifications

The goods must meet the following requirements:

  1. Certified organic by the National Organic Certification Board.

  2. Delivered in fresh, undamaged condition with no more than 48 hours since harvest.

  3. Packaged in environmentally sustainable materials.

III. Pricing and Payment Terms

A. Pricing

The total cost for the goods is determined based on the following rate:

  • Fruits: $3 per pound.

  • Vegetables: $2.50 per pound.

B. Payment Terms

  • Deposit: 20% of the estimated monthly cost upon signing this Agreement.

  • Monthly Billing: The Supplier will issue an invoice at the end of each month for goods delivered during that period.

  • Payment Due Date: Payments must be made within 15 days of invoice receipt.

  • Late Payment Penalties: A 1.5% monthly penalty will be charged on overdue balances.

IV. Delivery Terms

A. Delivery Schedule

The Supplier agrees to deliver goods twice per week on Mondays and Thursdays, starting January 8, 2051.

B. Delivery Location

Delivery will be made to ForBiz Warehouse, Irving, TX 75038.

C. Shipping Responsibility

The Supplier will handle transportation and ensure goods are kept at optimal temperatures during transit.

V. Quality Standards and Inspection

A. Standards

The produce must adhere to the following quality standards:

  1. Free from visible defects, bruises, or discoloration.

  2. Meeting or exceeding the USDA Grade A standard for fresh produce.

B. Inspection

The Buyer will inspect the goods upon delivery and notify the Supplier of any defects or non-compliance within 24 hours. The Supplier must replace non-compliant goods within 48 hours at no additional cost.

VI. Termination Clause

A. Termination by Buyer

The Buyer reserves the right to terminate this Agreement if:

  1. Deliveries are delayed by more than three consecutive instances.

  2. The Supplier repeatedly fails to meet quality standards.

B. Termination by Supplier

The Supplier may terminate this Agreement if the Buyer fails to make payments as outlined in the Payment Terms section, with a notice period of 30 days.

VII. Liability and Indemnification

A. Liability

The Supplier will be held liable for:

  1. Any contamination or safety issues related to the produce.

  2. Damages incurred during transportation.

B. Indemnification

The Supplier agrees to indemnify and hold the Buyer harmless against:

  • Claims arising from unsafe or improperly certified produce.

  • Losses resulting from delivery delays caused by the Supplier.

VIII. Confidentiality and Intellectual Property

A. Confidentiality

Both parties agree to keep pricing and terms of this Agreement confidential and not disclose such information to third parties without written consent.

B. Intellectual Property

The Supplier retains all rights to proprietary farming methods and techniques.

IX. Dispute Resolution

A. Governing Law

This Agreement will be governed by the laws of Oregon, United States.

B. Resolution Mechanism

Any disputes will be resolved through:

  1. Negotiation: The parties will first attempt to resolve disputes amicably through good-faith discussions.

  2. Mediation: If negotiations fail, mediation will be conducted by a neutral third party.

  3. Arbitration: If mediation is unsuccessful, binding arbitration will be conducted under the rules of the American Arbitration Association (AAA).

X. Signatures

By signing below, both parties agree to the terms and conditions outlined in this Agreement.

For the Buyer:

Name: Naomi Ortiz 
Title: Procurement Manager
Date: January 5, 2051

For the Supplier:

Name: [Your Name]
Title: Sales Director
Date: January 5, 2051

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