Business Setup

Supplier Agreement

A Supplier Agreement defines the terms of supply between a supplier and a buyer. Covers pricing, delivery, quality standards, warranties, and termination in Kenya.

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What this document covers

Supplier and buyer details
Products or services to be supplied
Pricing and price review mechanism
Delivery terms and Incoterms if applicable
Quality standards and inspection rights
Warranties and defective goods process
Payment terms
Termination provisions
Governing law clause

Frequently Asked Questions

Is a supplier agreement legally binding in Kenya?
Yes, under the Law of Contract Act (Cap. 23). A signed supplier agreement is enforceable and protects both buyer and supplier by clearly defining pricing, delivery terms, quality standards, warranties, liability, and termination rights.
What should a Kenyan supplier agreement include?
Product or service description, pricing and payment terms, delivery timeline and logistics, quality standards and inspection rights, warranties, liability cap, dispute resolution, and termination provisions. For imports, include Incoterms to define risk and responsibility during transit.
Is a supplier agreement valid internationally?
Yes. Supplier agreements are standard commercial contracts across all common law and civil law countries. For international supply, reference the applicable Incoterms (e.g. FOB, CIF, DDP) and the governing law. The UN Convention on Contracts for the International Sale of Goods (CISG) may apply to international sales.