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Is it legal for my customer to force me to sell to their partner (at the same price)?

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Trillous

New member
What is the name of your state? Michigan

Specifically, we have a customer that claims this is in our contract:

CustomerA requires Suppliers to supply Goods to Authorized Third Party Providers at the same prices available to CustomerA, if applicable.
 


Zigner

Senior Member, Non-Attorney
What is the name of your state? Michigan

Specifically, we have a customer that claims this is in our contract:

CustomerA requires Suppliers to supply Goods to Authorized Third Party Providers at the same prices available to CustomerA, if applicable.
Yes, such a contract can be entered in to.
 

Taxing Matters

Overtaxed Member
What is the name of your state? Michigan

Specifically, we have a customer that claims this is in our contract:

CustomerA requires Suppliers to supply Goods to Authorized Third Party Providers at the same prices available to CustomerA, if applicable.
Well, I don't know if that is in your contract. Read it and find out. :D

If your question is whether that kind of provision in a contract is enforceable, in general the answer is yes.
 

PayrollHRGuy

Senior Member
What is the name of your state? Michigan

Specifically, we have a customer that claims this is in our contract:

CustomerA requires Suppliers to supply Goods to Authorized Third Party Providers at the same prices available to CustomerA, if applicable.
Strange that you don't seem to know what is in your contract.

I can think of a reason I'd want that in a contract I had with vendors but I wouldn't think for a second that I should ask the vendor to write it in such a broad way.

But if you signed it there is nothing illegal about it.
 

Zigner

Senior Member, Non-Attorney
Yes, that was basically my question. Can we be forced to sell to these third party providers at the same price that we sell to CustomerA.
To be absolutely accurate, you can't be forced to do it, but if you don't, then you may be found in breach of the contract and be forced to pay damages, per the contract.
 

Trillous

New member
Strange that you don't seem to know what is in your contract.

I can think of a reason I'd want that in a contract I had with vendors but I wouldn't think for a second that I should ask the vendor to write it in such a broad way.

But if you signed it there is nothing illegal about it.
There is some confusion about what we have "signed". No one that I work with has signed the document where the above wording is located.

We have received a purchase order that states:

Unless the Buyer entity is a joint venture (“JV”), this purchase order (“PO”) is governed by the Buyer’s Production Purchasing Global Terms and Conditions (PPGTC Jan. 1, 2004), including the documents incorporated by reference that are in effect in the country where the Buyer is located on the later of the Effective Date or the most recent renewal date.

The wording about selling to third party providers at the same price is not in the Buyer’s Production Purchasing Global Terms and Conditions (PPGTC Jan. 1, 2004) document. It's in a supplemental document, but I don't see where that other document is referenced on the purchase order.
 

cbg

I'm a Northern Girl
I don't see it either; that's because no one here has access to the paperwork in question.

By all means take all the associated documentation to an attorney in your state for review. All we can tell you is that there's nothing illegal about the phrase you reference; we can't tell you what is in documentation that we can't see (and you can).
 

PayrollHRGuy

Senior Member
If this customer is requiring you to do something in order to get their business and you don't want to do that something you have three options.
1. Do it and keep their business.
2. Don't do it and risk NOT keeping their business.
3. Negociate.
 

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