Hello purchasing professionals! Welcome to the last post about contractual clauses. Previously, we talked about the less complex negotiation and execution clauses (Price Adjustment, Rebate, Force Majeure and Contingency Plan). We also discussed the medium complexity clauses (Exclusivity, Competition, Initial Right of Refusal and Take or Pay), so now we will finally close this series with the most complex clauses: Most Favored Consumer and Meet or Release.

Most Favored Consumer: Since we are...

Hello purchasing professionals! In the last post, we talked about the contractual clauses considered of low complexity (price adjustment, rebate, force majeure and contingency plan), now that you already know them and understand how important their application is to protect your company and your supplier, let's discuss the medium complexity clauses, which are: Exclusivity, Competition, Right of First Refusal, and Take or Pay.

Exclusivity: This is commonly mixed up with the competition...

So, you are a buyer and received a demand, looked for new suppliers if needed, evaluated the best source of supply, negotiated the commercial conditions, registered the item properly in your system and … done? Not at all! If the item in question is classified as an "A" or "B" item on your ABC curve, the development and signing of a Supply & Purchasing agreement is essential.
A properly written contract is one that clarifies to the parties “who does what.” Ideally, the contract should be...