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Material Supply Agreement
"I need a Material Supply Agreement under Indonesian law for the supply of electronic components from a Jakarta-based manufacturer to our assembly plant, with strict quality control requirements and quarterly testing protocols, starting March 2025."
1. Parties: Identification of the supplier and buyer, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, including the supplier's business, buyer's requirements, and any relevant pre-contractual arrangements
3. Definitions: Definitions of key terms used throughout the agreement, including technical specifications and industry-specific terminology
4. Supply Obligations: Core obligations of the supplier regarding material supply, including quality standards and quantity commitments
5. Ordering Process: Procedures for placing and confirming orders, including minimum order quantities and lead times
6. Delivery Terms: Delivery arrangements, including timing, location, and Incoterms (if applicable)
7. Price and Payment: Pricing structure, payment terms, invoicing requirements, and any price adjustment mechanisms
8. Quality Requirements: Detailed quality specifications, testing procedures, and acceptance criteria
9. Title and Risk: Transfer of ownership and risk in the materials
10. Warranties: Supplier's warranties regarding the materials and standard of service
11. Term and Termination: Duration of the agreement and circumstances allowing early termination
12. Confidentiality: Protection of confidential information exchanged between parties
13. Force Majeure: Events excusing performance and procedures for handling force majeure situations
14. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution procedures
1. Exclusivity: Used when the supplier is granted exclusive rights or the buyer commits to exclusive purchasing
2. Minimum Purchase Commitment: Include when the buyer commits to purchasing minimum quantities
3. Storage and Warehousing: Required when the agreement includes storage arrangements or consignment stock
4. Insurance Requirements: Detailed insurance obligations beyond standard requirements
5. Intellectual Property: Needed when the supply involves proprietary materials or technology
6. Export/Import Requirements: Include for international supply arrangements
7. Environmental Compliance: Required for materials with environmental impact or hazardous substances
8. Change Control: Include for complex supply arrangements requiring formal change management
9. Performance Metrics: Used when specific KPIs are being tracked
10. Security Requirements: Include when handling sensitive or strategic materials
1. Material Specifications: Detailed technical specifications of all materials covered by the agreement
2. Pricing Schedule: Detailed pricing for each material, including any volume discounts or special pricing arrangements
3. Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria
4. Delivery Locations: List of approved delivery locations and any specific requirements for each
5. Key Personnel: Contact details of key personnel responsible for managing the supply relationship
6. Service Levels: Detailed service level requirements and measurement criteria
7. Forms and Procedures: Standard forms for ordering, delivery receipts, and quality certificates
8. Compliance Requirements: Specific regulatory or compliance requirements applicable to the materials
Authors
Manufacturing
Construction
Mining
Chemical Industry
Automotive
Electronics
Textile Industry
Food and Beverage
Pharmaceuticals
Industrial Equipment
Energy
Infrastructure
Agriculture
Metal Processing
Procurement
Legal
Supply Chain
Operations
Quality Control
Commercial
Logistics
Production
Risk Management
Compliance
Finance
Vendor Management
Procurement Manager
Supply Chain Director
Commercial Director
Legal Counsel
Operations Manager
Quality Control Manager
Contract Administrator
Purchasing Officer
Production Manager
Logistics Manager
Chief Operating Officer
Materials Manager
Vendor Relations Manager
Compliance Officer
Risk Manager
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