Free Trade Credit Agreement Template

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Free Trade Credit Agreement Template

Trade Credit Agreement

This Trade Credit Agreement (the "Agreement") is entered into on this January 1, 2077 by and between [YOUR COMPANY NAME], a company organized and existing under the laws of the United States with its principal place of business at [YOUR COMPANY ADDRESS] (hereinafter referred to as the "Supplier"), and Zenexus, a company with its principal place of business at Lubbock, TX 79401 (hereinafter referred to as the "Customer").

The parties agree as follows:

I. DEFINITIONS

For the purposes of this Agreement:

  1. "Credit Limit": The maximum amount of credit extended to the Customer by the Supplier under this Agreement.

  2. "Payment Terms": The conditions under which payments must be made by the Customer to the Supplier.

  3. "Due Date": The date by which payment is required to be made.

  4. "Default": Failure by the Customer to adhere to the Payment Terms specified in this Agreement.

II. CREDIT TERMS

  1. The Supplier agrees to provide the Customer with a credit facility up to the amount of $500,000.

  2. All credit purchases must be repaid within 30 days from the invoice date unless otherwise specified in writing by the Supplier.

  3. Interest on overdue payments shall be charged at a rate of 1.5% per month.

III. INVOICING AND PAYMENTS

  1. The Supplier shall issue an invoice for each transaction, specifying the goods/services provided, their cost, applicable taxes, and the Due Date.

  2. Payments shall be made in USD via bank transfer or ACH.

  3. Partial payments may be accepted only with prior written approval from the Supplier.

IV. CUSTOMER’S OBLIGATIONS

  1. The Customer shall provide accurate and updated financial information upon request by the Supplier.

  2. The Customer agrees to use the credit facility solely for purchasing goods or services from the Supplier.

  3. The Customer shall notify the Supplier in writing of any disputes regarding an invoice within 7 days of receipt.

V. DEFAULT AND REMEDIES

  1. The Customer shall be in Default if:

    • Payment is not made by the Due Date.

    • The Customer breaches any other term of this Agreement.

  2. In the event of Default, the Supplier may:

    • Suspend or terminate the credit facility.

    • Demand immediate payment of all outstanding amounts, including accrued interest.

    • Pursue legal action to recover amounts due.

VI. SECURITY AND GUARANTEES

  1. The Supplier may require a personal guarantee or collateral as security for the credit facility.

  2. The Customer agrees to provide such security as may be requested by the Supplier.

VII. REPRESENTATIONS AND WARRANTIES

  1. The Customer represents and warrants that:

    • It is duly organized, validly existing, and in good standing under the laws of Lubbock, Texas.

    • It has the legal capacity and authority to enter into this Agreement.

  2. The Supplier represents and warrants that:

    • It is duly authorized to provide the credit facility under applicable laws.

    • The terms of this Agreement do not violate any applicable laws or regulations.

VIII. TERM AND TERMINATION

  1. This Agreement shall commence on the date first written above and shall continue unless terminated by either party with 30 days written notice.

  2. Termination shall not relieve the Customer of any payment obligations incurred prior to the termination date.

IX. GOVERNING LAW AND DISPUTE RESOLUTION

  1. This Agreement shall be governed by and construed in accordance with the laws of Lubbock, Texas.

  2. Any disputes arising out of or relating to this Agreement shall be resolved through:

    • Negotiation and mutual agreement.

    • If unresolved, arbitration in accordance with the rules of American Arbitration Association (AAA).

    • The jurisdiction of the courts in Lubbock, Texas.

X. MISCELLANEOUS

  1. Amendments: Any changes to this Agreement must be made in writing and signed by both parties.

  2. Assignment: The Customer shall not assign its rights or obligations under this Agreement without prior written consent from the Supplier.

  3. Entire Agreement: This Agreement constitutes the entire understanding between the parties and supersedes all prior agreements or understandings.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

[YOUR COMPANY NAME]:

Name: [YOUR NAME]
Title: Chief Executive Officer
Date: January 1, 2077

Zenexus:

Name: Bennie Goodwin
Title: Chief Financial Officer
Date: January 1, 2077

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