Contract terms to check before signing an amenity supply deal

This is a checklist, not legal advice

The points below are practical items buyers commonly review. They are not legal advice, and every agreement differs. Have a qualified adviser read the final document, especially for anything covering exclusivity, liability or cross-border supply.

The aim here is to help you ask better questions before you reach that stage.

Scope, specification and samples

Does the contract attach the approved specification and sample by name and date?
Does it say what happens if bulk stock differs from the approved sample?
Are product names, sizes, fragrance codes and packaging all listed?
Is any change to the formula, material or packaging subject to your written approval?

This last point matters. A silent substitution of a component is a classic cause of problems, and the wording should block it.

Watch for words such as equivalent, similar or comparable. They sound harmless, but they give the supplier freedom to swap one item for another. Replace them with the exact product code wherever you can.

Price, validity and adjustments

Check how long the quoted price holds and what can change it. Look for clauses linking price to raw material, freight or currency. If adjustments are allowed, ask how they are calculated, how much notice you get and whether you may cancel a pending order. Clarify who pays for freight, insurance, taxes and duties, and which delivery terms apply.

Ask whether prices depend on volume tiers and what happens when your volume falls short. A discount that disappears at the first missed target is worth knowing about before you sign.

Payment terms deserve their own check. Look at the deposit, the balance and the due date, and whether late payment carries a charge. If you are paying in advance for custom production, ask what protection you have if the order is delayed.

Minimum commitments and exclusivity

Some agreements ask for a minimum annual quantity. Read the consequence of missing it. Is there a penalty, a price change or nothing at all? Exclusivity clauses, which bar you from buying similar products elsewhere, should be narrow in scope and time. A hotel that opens a new property may want freedom to buy locally in the first year.

If you are building a custom range, check who may sell the product or its packaging to other customers, and for how long.

For example, if you agree a minimum of 10,000 units a year and use only 7,000 because occupancy fell, see whether the contract asks you to pay for the missing 3,000, carry them forward or simply reprice. These are three very different outcomes from the same sentence.

Delivery, quality and remedies

Delivery dates and what counts as late.
Inspection rights and the period in which you may reject goods.
What happens to rejected stock: replacement, credit or refund.
Batch records and traceability, in case a recall is needed.
Storage and shelf-life statements, if relevant.

A clear rejection process is more helpful than a promise of high quality. It tells both sides what to do when something goes wrong.

Do not skip the practical side of delivery either. Agree where goods are unloaded, who counts them and how damage is recorded on receipt. A signed delivery note with a note of damage is stronger evidence than an email a week later.

Termination, ownership and disputes

Look at how either side can end the agreement, with what notice and what happens to stock already produced for you. Check ownership of artwork, moulds, labels and any custom formula. Review how disputes will be handled, including where and under which law, and whether there is a step for discussion before formal action.

Finally, ask for a single named contact on both sides and a way to record changes in writing. Read the supplies information and the private label process to see which terms apply to your programme, and ask for a sample and a quote before negotiating.

Keep a one-page summary of the agreement on file for the property team: the product list, delivery contact, reorder method and who to call about a fault. Most staff will never read the full contract, but they will read that page.

Questions on this topic

Do I need a contract for a small order?

A purchase order with clear specification, price, delivery and rejection terms is usually enough for small orders. Larger or custom programmes deserve a fuller agreement.

What is the most overlooked clause?

Change control. Make sure no change to formula, material or packaging happens without your written approval.

Should I seek legal review?

Yes, for anything binding or long-term. A short review is inexpensive compared with the cost of a dispute.

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