Document background
The Master Supply Agreement is a crucial commercial contract used when parties intend to establish a long-term supply relationship with multiple transactions over time. This agreement, governed by Canadian law, provides the overarching framework that governs all future purchase orders and supply arrangements between the parties. It is particularly useful when a business needs to establish consistent terms for regular procurement of goods, ensuring standardization across multiple transactions while reducing transaction costs and negotiation time. The agreement typically includes comprehensive terms covering ordering processes, quality requirements, risk allocation, and commercial terms, with flexibility to accommodate specific requirements through schedules and purchase orders. It incorporates relevant Canadian federal and provincial legislative requirements and is designed to provide clarity and certainty in commercial relationships while maintaining operational flexibility.
