Free Raw Material Supply Agreement Template
Raw Material Supply Agreement
This Raw Material Supply Agreement ("Agreement") is entered into as of January 1, 2050 by and between:
Supplier: [Your Company Name], a Delaware corporation with its principal place of business at [Your Company Address] ("Supplier"),
Purchaser: Global Manufacturing Co., a Texas corporation with its principal place of business at 456 Industry Avenue, Houston, TX, USA ("Purchaser").
RECITALS
A. Supplier specializes in the production and supply of high-grade titanium alloy (Grade 5) for industrial use.
B. Purchaser requires titanium alloy as a core component for manufacturing aerospace parts and wishes to secure a reliable supply.
NOW, THEREFORE, in consideration of the mutual promises and covenants herein, the parties agree as follows:
1. Scope of Supply
1.1 Supplier agrees to supply high-grade titanium alloy (Grade 5) as specified in Exhibit B.
1.2 Annual quantities shall be as listed in Exhibit A, with an estimated total of 5,000 metric tons.
2. Term and Termination
2.1 This Agreement shall commence on January 1, 2050, and remain in effect until December 31, 2055, unless terminated earlier under Section 2.2.
2.2 Either party may terminate this Agreement:
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With a 90-day written notice, or
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Immediately in case of material breach by the other party.
3. Specifications and Quality
3.1 The titanium alloy must meet the standards detailed in Exhibit B and comply with ISO 9001 certification requirements.
3.2 Purchaser reserves the right to inspect and test materials upon delivery. Rejected goods must be replaced at Supplier’s cost within 15 days.
4. Orders and Delivery
4.1 Purchaser will submit purchase orders electronically at least 60 days in advance of the requested delivery date.
4.2 Delivery terms are FOB Houston, TX, with shipments arriving no later than the 15th day of each calendar month.
4.3 Risk of loss and title transfer to Purchaser upon successful delivery and acceptance at the designated facility.
5. Pricing and Payment
5.1 Pricing is set at $30,000 per metric ton for 2050, subject to annual adjustment based on the Raw Material Price Index (RMPI).
5.2 Payment terms are net 30 days from the invoice date. Late payments will incur interest of 1% per month.
6. Force Majeure
6.1 Neither party shall be liable for delays or failure in performance caused by events beyond their reasonable control, including natural disasters, cyberattacks, pandemics, or government-imposed restrictions.
7. Warranties and Indemnities
7.1 Supplier warrants that all materials:
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Conform to agreed specifications.
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Are free from defects in material and workmanship.
7.2 Each party indemnifies the other for claims arising from negligence, non-compliance with applicable laws, or breach of this Agreement.
8. Confidentiality
8.1 All technical data, pricing, and business strategies shared under this Agreement are confidential and shall not be disclosed without prior written consent, except as required by law.
9. Governing Law and Dispute Resolution
9.1 This Agreement shall be governed by the laws of the State of Delaware, USA.
9.2 Disputes will be resolved through binding arbitration under the American Arbitration Association in Wilmington, DE.
10. Miscellaneous
10.1 This Agreement represents the entire understanding between the parties. Any modifications must be in writing and signed by both parties.
10.2 Neither party may assign this Agreement without prior written consent.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
[Your Name]
[Your Company Name]
[Date]
Franz Davis
Global Manufacturing Co.
[Date]
