A blanket purchase agreement (BPA) is a type of purchasing agreement that is commonly used by businesses to establish an ongoing relationship with a supplier. This agreement allows the business to purchase goods or services from the supplier over a specified period of time, usually a year or more. BPAs are convenient for businesses that require frequent and multiple purchases of the same product or service.
Here’s a sample of what a BPA might look like:
This Blanket Purchase Agreement (BPA) is made on [date] by and between [business name], hereinafter referred to as “Buyer,” and [supplier name], hereinafter referred to as “Supplier.”
Purpose: The purpose of this BPA is to establish a long-term purchasing agreement between Buyer and Supplier for the purpose of providing [product/service] as needed by Buyer during the term of this agreement.
Term: This BPA shall be effective for a period of [insert duration] beginning on [insert date] and ending on [insert date].
Goods/Services: The goods/services covered under this BPA shall be [insert product/service description]. The exact quantity and delivery schedule shall be determined by Buyer on an as-needed basis and communicated in writing to Supplier.
Pricing: The pricing for the goods/services covered under this BPA shall be [insert pricing terms]. Supplier shall provide Buyer with a price quote for each individual order, which shall be subject to Buyer’s approval.
Delivery: Supplier shall deliver the goods/services covered under this BPA to Buyer’s designated location at Buyer’s expense. Delivery shall be made in accordance with the delivery schedule established by Buyer and communicated in writing to Supplier.
Payment: Payment for goods/services shall be made in accordance with the payment terms established by Buyer and communicated in writing to Supplier.
Termination: Either party may terminate this BPA at any time upon written notice to the other party. In the event of termination, Buyer shall only be responsible for payment for goods/services received prior to the date of termination.
Governing Law: This BPA shall be governed by and construed in accordance with the laws of [insert state/country]. Any legal action arising out of or relating to this Agreement shall be brought exclusively in the courts of [insert state/country].
This sample BPA is just an example and is subject to change depending on the specific needs and circumstances of the business and supplier involved. It’s important for businesses to work closely with their suppliers to establish a BPA that meets their specific needs and requirements. A well-drafted BPA can provide businesses with a reliable source of goods and services, while also helping to establish a long-term relationship with their supplier.