Specification of the supply contract: what it should be

Specification is an appendix to the supply contract, in which the parties agree on a specific batch: what goods, how much, at what price and on what terms. The contract itself remains a framework: it describes the general rules, and the range and prices vary from party to party.

Why do you need it?

The delivery contract is considered concluded when the name and quantity of the goods are agreed (Articles 455 and 465 of the Civil Code). If they are not in the framework contract and the specification is not signed, the obligation to deliver the goods does not arise: the supplier is not obliged to ship, the buyer is not obliged to accept and pay.

The specification closes this gap and at the same time fixes the price so that it cannot be revised after shipment.

What to indicate

1. Reference to the contract: number and date. Without it, the document will not be part of it.
2. Number and date of specification.
3. Goods: exact name, article or mark, unit of measure, quantity.
4. Price per unit and amount, VAT rate and amount. Indicate whether delivery and packaging are included in the price.
5. Date of delivery: date or period, countdown on prepayment or signing.
6. Conditions of delivery: Self-delivery from the warehouse, delivery to the buyer or to the carrier, address.
7. Payment procedure: Prepayment, deferment, period in days.
8. Disclaimer: The rest of the parties are guided by the contract.

Name and number are essential conditions. The rest can not be specified, then the terms of the contract apply, and if he is silent, the general rules of the code. But the time and order of payment is better to write down directly: they are considered late and forfeit.

You can collect a document with the calculation of the amount and VAT in the form Specification to a supply contract.

How specification differs from order and bill

• Order. - buyer's offer. It becomes mandatory for the supplier after confirmation.
• Account. - a claim for payment. There are usually no delivery terms.
• Specification Bilateral document: it is signed by both parties and becomes part of the treaty.

If the parties agree on the parties with orders and invoices, the contract must expressly allow this - otherwise in the dispute you will have to prove that the terms were agreed.

Typical errors

• No reference to the contract or another contract of the same counterparty.
• Inaccurate name: "Cable in the range" instead of brand and cross section.
• Contradiction to the treaty in terms or order of payment. Write in the contract that in case of discrepancy, the specification applies.
• A man without authority signed: Manager without power of attorney.

Frequent questions

Who signs the specification?

The same persons who are entitled to sign the contract: managers or representatives by proxy.

Is it possible to change the price after signing the specification?

Only by agreement of the parties, if the contract does not give the right to unilateral change.

Is the specification mandatory if everything is in the contract?

Nope. For a single delivery, the goods, quantity and price can be recorded in the contract itself or in account-contract.

Can I sign the specification electronically?

Yes, if the contract allows the exchange of electronic documents or the parties work through the operator of electronic document management.