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that many businesses use, but it is important to understand the difference between a preferred supplier agreement and a contract to supply services. In New Zealand, suppliers often have preferred supplier agreements in place, which are not the same as contracts. Preferred supplier agreements are commonly used, especially in the services industry. It is crucial for businesses to understand the implications of these agreements, particularly when buying or selling a business for continuity of service. For example, a carpet cleaning business may have a preferred supplier agreement or a casual arrangement for smooth operations.
