Parties to the agreement are:
ABC Inc, hereinafter the Customer;
DEF Manufacturing, hereinafter the Supplier; and
GHI Shippers, hereinafter the Shipper.
Other terms used in the contract are defined in ISO 20xx.
1) The Customer may order Product from the Supplier.
2) The Supplier shall ship the Product via the Shipper within two days of order.
3) Should the Supplier fail to ship, it shall pay a penalty of 10% of total order value.
4) The Shipper shall deliver the shipment within ten days.
5) The Customer shall pay the Supplier within thirty days of receipt of the shipment.
6) Finally, should the Shipper fail to deliver the shipment, it shall pay its full value to the Supplier.
Signed at _______ on _______ by ________ ________ ________
Contracts are statements of intent that regulate behavior amongst organizations and individuals, ranging from international trade law to verbal offer and acceptance between people. A contract is instantiated as a set of obligations between its parties, which are either fulfilled, cancelled or violated. A good contract defines the rights and obligations in every possible case, including violation, which is illustrated for a hypothetical supply contract.