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Preferred supplier agreements and contracts to supply are commonly used in businesses, especially in New Zealand. It is crucial to differentiate between the two, as a preferred supplier agreement does not equate to a contract to supply services. Most businesses utilize preferred supplier agreements, which are essential for continuity of service post-sale. For instance, a carpet cleaning business may have a preferred supplier agreement or a casual arrangement for ongoing service provision. Understanding the terms of these agreements is vital for both buyers and sellers in a business transaction.
