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Whether your company is supplying or buying products on a wholesale basis, you need to have a contract in place so that both sides are clear on the terms of the agreement.
We've put together a guide to writing a wholesale agreement and have included some tips to help you find and use a template to get started.
What is a wholesale agreement?
A wholesale agreement is a contract that sets out the terms of the relationship between a supplier and buyer of goods, specifically on a bulk basis. A wholesale deal supplies goods at a discounted price that must be detailed in the agreement.
When should I use a wholesale agreement?
A formal written contract should be used every time you start a new wholesale relationship with a buyer or supplier, so that the terms are clear from the beginning.
Wholesale agreement vs supply agreement
A wholesale agreement is similar to a supply agreement in that it sets out the terms between the wholesaler and buyer for the supply of products. However, a wholesale agreement adds specific clauses involving the bulk nature of the purchase – including minimum order volume, value and commitment. This protects the wholesaler who is supplying the products at a lower price.
What does a wholesale agreement include and not include?
A wholesale contract includes the obligations that both parties agree to regarding the supply of the products, the payment terms and the length of the agreement.
What is included in a wholesale agreement?
The terms of the agreement include clauses that cover:
- Product details
- Placing an order
- Minimum order quantity
- Minimum order value
- Wholesale pricing
- Minimum commitment period
- Recommended retail pricing
- Payment terms
- Dispatch and delivery
- International shipping
- Return and exchange policy
- Order cancellation policy
- Product ownership
- Liability and warranty
- Contract termination
What is not included in a wholesale agreement?
A wholesale agreement does not include the terms for the retail of the products beyond the recommended retail price. The agreement should not include overly complicated, legalistic language or unnecessary jargon.
How effective is a wholesale agreement?
Signing a written agreement will protect your company if there is a dispute over the goods or terms of the relationship in the future. Using a legal template will make sure that the contract complies with Australian law and is admissible in a law court.
Do I need a lawyer to write a wholesale agreement?
You do not need a lawyer to write a wholesale agreement. There are templates available online that can be used for a legally binding contract as they comply with Australian law. However, having an experienced business lawyer draft or review the agreement will ensure that it contains all the terms needed to protect your company from liability.
Get access to wholesale agreement templates online
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How do I write a wholesale agreement?
A wholesale agreement should be written in clear language. It should be professional and objective, with each section clearly defined.
The agreement should explain in detail how a wholesale order should be placed and the terms for an order; the pricing advantage for the bulk volume; payment terms; and the length of time, waiver and shipping cost of returns. It should also include the warranty, cancellation and termination policies.
Using subheaders, bullet points and numbered lists will make the contract easy to read and reference when needed. If you are unsure about the wording, you can find a customisable template below to help.
Where to get free legal documents and templates like a wholesale agreement
- Lawpath. Lawpath is an online legal resource for small businesses and entrepreneurs. Users can browse the extensive document library for free but must sign up for an account to customise and download templates including a wholesale agreement.
- Legal Zebra. Legal Zebra gives you access to a free sample PDF if you sign up to its marketing emails. To access a customisable wholesale agreement template, you will need to pay a one-time fee of $77.
- Net Lawman. Net Lawman has a library of almost 400 legal document templates. You can preview a document for free, although you will need to pay a one-time fee to download a customisable template.
- Emerge. Emerge is an app designed to help small businesses with efficient inventory management. You can download a wholesale agreement template from its website for free.
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