A business contact can be agreed by speaking or in writing. Small contracts can be agreed by speaking. Big contracts are better to be written. If there is any misunderstanding about the contract, it is easier to solve the problem by checking what was written in the contract.
People who enter into a supplier contract should agree on the following things:
· Who is making a contract with whom,
· When to start and how long to continue,
· What and how much is to be supplied, and where the goods should be,
· The price and how to pay,
· How to make changes or stop the contract.
Sally succeeds in making a contract with a restaurant. It is agreed that starting next Monday, for the next three months, Sally will deliver one canister of fruit juice of the season to the restaurant each Monday to Saturday by eleven o’clock in the morning. If more or less juice is needed, the restaurant will let the juice producer know one week ahead of time. Both Sally and the restaurant agree to keep track of how much juice is delivered. The restaurant agrees to pay X amount per canister to Sally at the end of each week on Saturday. This contract can be changed if both parties agree. This contract can be stopped if one party gives notice one week ahead of time.
Who do you think should be a supplier to your business? How would you plan to make contact and enter into a contract with them?
Sometimes suppliers approach a business owner and want to make a contract. How would you decide if want to make a contract with a supplier?
How are these two situations different? Who has more control in each situation to say what they want? Why is that?