Good Contract Agreement Between Raels Coffee House And Joes Coffee Supply For Delivery Essay Example

- Parties to the contract
This is an agreement between Rael’s Coffee House, here in referred to as the Client and Joe’s Coffee Supply, here in referred to as the supplier for supply of bulk coffee.
(This part of the contract defines parties involved in the agreement and to whom the provisions of the contract shall be binding)
- Duration of the Contract
The contract for supply of bulk coffee by the contract to the client shall be valid for two years within which the prices shall remain valid. The contract shall be renewed after expiry with new prices and any other new terms that the parties may agree to include into the contract. However parties are free to end the contract by giving a three months notice prior to terminating the contract.
(This provision gives a timeframe within which the contract shall be considered valid so that the Client can have an opportunity to review the performance of the supplier).
- Terms of reference – Contractors responsibilities
- Timely delivery and place of delivery
The Supplier agrees to deliver 50% of bulk coffee ordered within seven hours of receiving the order from the client and the balance within 24 hours of receiving the purchase order. (This clause will protect the client from any losses arising from delays in delivering coffee by the supplier after making an order)
- Payment terms
Payment shall be cash on delivery, otherwise where the client requires a credit facility this will be specified in the purchase order. (This provision ensures that the client pays promptly for orders delivered.)
- Making Orders
Orders shall be made through authorized purchase order, however, where the is an urgent need, an email from the Procurement manager will be sufficient. Such an order should not exceed 500 Pounds.
- Quantity delivered
All deliveries must be accompanied with a delivery note which must be signed by the Stores Manager for accountability. Partial deliveries will be accepted subject to delivering the whole consignment within 48 Hours of receiving the purchase order.
- Prices to be charged
The quoted prices shall remain valid the two years. However, under special circumstances when the market prices change to the disadvantage of the supplier, the prices to be charged shall revised at the request of the Supplier.
- Quality of Coffee
The Supplier has an obligation to supply high quality coffee at all times since the supplier is willing to pay for good quality coffee. The Supplier shall be liable to pay a fine of 80% of the cost for any coffee supplied that does not meet the client’s quality standards.
- Dispute resolution
Any disputes arising in the course of this contract shall be resolved through arbitration and if not fully resolved, the parties shall then proceed to the court of law.