Customer Agreement

A Customer Agreement is a legal document in foreign trade that defines the long-term cooperative relationship between a supplier and a customer. It typically covers core elements such as price terms, payment methods, delivery conditions, quality standards, intellectual property, confidentiality obligations, liability for breach, and dispute resolution. It is often used when the two parties establish a stable supply relationship, such as an annual procurement framework or exclusive agency cooperation. Unlike a single sales contract, a Customer Agreement emphasizes a framework and continuity, with specific transactions executed through subsequent orders or supplementary agreements. Points to note include: clarifying the hierarchy of effectiveness between the agreement and orders to avoid conflicting terms; paying attention to flexibility in payment and delivery to adapt to market changes; and stipulating termination conditions and force majeure clauses. Compared with a sales confirmation, a Customer Agreement is more comprehensive but less immediate; compared with a distribution agreement, it does not necessarily involve resale rights. It is advisable to have it reviewed by legal counsel to ensure compliance with international trade practices and applicable laws.