A product supply agreement is an agreement in which a supplier sells products to a business, and specifies the terms for the transactions, including the price, timing, quantities, delivery, shipping, payment terms, exclusivity, return of defective or nonconforming goods, and return of unsold goods. A supplier may be a distributor, wholesaler, dealer, or merchant.
In Virginia, a product supply agreement is a legally binding contract between a supplier and a business that outlines the terms and conditions of the sale and purchase of products. These agreements typically cover various aspects such as pricing, order quantities, delivery schedules, shipping methods, payment terms, and exclusivity clauses. They may also include provisions for the return of defective or nonconforming goods, as well as unsold goods. Virginia adheres to the Uniform Commercial Code (UCC), which governs commercial transactions including sales of goods, and these agreements must comply with relevant UCC provisions. Additionally, such agreements may be subject to state-specific laws regarding contracts, consumer protection, and business transactions. It is advisable for parties entering into a product supply agreement in Virginia to consult with an attorney to ensure that the agreement is legally sound and enforceable under state and federal law.