EXPLANATORY NOTES FOR A CONSIGNMNT STOCK SUPPLY AGREEMENT BETWEEN PARTIES IN THE REPUBLIC OF SOUTH AFRICA AND WHERE THE SUPPLY OF GOODS TAKES PLACE WITHIN THE REPUBLIC

This is a very detailed agreement that may be used for the supply of goods by one party (“the Supplier“) to another (“the Purchaser“) within the Republic of South Africa. It is intended for use by large corporates that fall outside the ambit of the NCA.

This agreement is intended solely for use by seasoned legal practitioners. It is drafted in favour of the Supplier however, with minimal effort, a seasoned legal practitioner can make all rights and obligations reciprocally applicable, or in favour of the Purchaser, as the case may be.

This LOCAL CONSIGNMENT STOCK SUPPLY agreement:

  • is legally substantive (18 pages in total); please feel free to look at the explanatory notes below and compare the substance of this agreement to others for sale elsewhere;
  • is bordered;
  • has pages numbered;
  • is fully justified;
  • is typed up using Tahoma font, size 10;
  • has been meticulously spell-checked;
  • is extremely professional in its appearance;
  • has several drafting notes therein to guide a legal practitioner;
  • may be printed onto 18 A4 pages. (In the interests of the environment, it is suggested that the agreement rather be printed back to back on 9 pages.).

This LOCAL CONSIGNMENT STOCK SUPPLY agreement contains the following clauses:

  1. PARTIES
  2. DEFINITIONS AND INTERPRETATION
  3. RECORDAL
  4. APPOINTMENT AS SUPPLIER OF GOODS
  5. GOOD FAITH
  6. DURATION
  7. OWNERSHIP AND RISK
  8. PRICE AND PRICE ADJUSTMENTS
  9. INVOICING AND PAYMENT
  10. SUPPLIER’S OBLIGATIONS
  11. QUALITY CONTROL
  12. WARRANTIES AND UNDERTAKINGS
  13. LIENS
  14. DELIVERY OF GOODS
  15. FORCE MAJEURE AND EXCUSABLE DELAY
  16. INDEMNITY INSURANCE
  17. SUPPLIER’S LIMITATION OF LIABILITY
  18. INTELLECTUAL PROPERTY
  19. INFRINGMENT OF PATENTS, TRADEMARKS AND COPYRIGHT
  20. INFORMATION
  21. TERMINATION
  22. OPTION TO REPURCHASE GOODS
  23. CONFIDENTIALITY
  24. GOVERNING LAW AND JURISDICTION
  25. DISPUTE RESOLUTION
  26. NOTICES
  27. ASSIGNMENT
  28. SEVERABILITY
  29. TRADE TERMS
  30. APPLICABLE LAW
  31. ENTIRE AGREEMENT
  32. AMENDMENT OF AGREEMENT
  33. WAIVER OF BREACH
  34. SUCCESSORS AND ASSIGNS
  35. COUNTERPARTS
  36. STIPULATION ALTERI

APPENDIX 1: PURCHASE PRICE OF GOODS

APPENDIX 2: FORM OF CONFIDENTIALITY UNDERTAKING

Please read carefully through the agreement and fill in all missing details; in preparing a signature document, please have regard to all the notes we have placed hereon to assist you with the conclusion of a professional, legally binding agreement.

We appreciate any constructive feedback concerning this agreement; such can be emailed to info@sitllegal.co.za