Example Digital Device Purchase
EXAMPLE
DIGITAL DEVICE PURCHASE
AGREEMENT
This agreement is by and between Calum
Tech International (“Buyer”), and the
mobile telephone company,
Falcons (“Seller”).
Whereas, the Seller desires to sell to the
Buyer a comprehensive group of 100 cell
phones within 90 days of signing, with
costs summarized below.
Cost Summary
1. Product: Cell phones = $200 each
2. Quantity: 100
3. Contract type: Typically, for a
product acquisition, Lowest prices,
technically acceptable (LPTA)
4. Period of performance: 60 months
5. Data usage per phone (monthly
without contract): $100 × 60
months = $6,000. Data usage
(monthly with contract): $40 × 60
months = $2,400
6. Video, text, and similar services:
Not applicable to this contract
7. Recycling costs: $75 × 100 =
$7,500
8. Total product cost: $2,675 to
$6,275 per phone; $267,500 to
$627,500 for 100
9. 20% Defense Business Operating
Fund fee = $53,500 to $125,500
10. Total potential cost
a. Without data contract =
$627,500 + $125,500 =
$753,000
b. With data contract =
$267,500 + $53,500 =
$321,000
Therefore, the parties hereby agree as
follows:
1) Purchase and Sale of Product. The
Seller agrees to sell, and the Buyer agrees
to buy, for a total purchase price of
$100,000.00 (“Purchase Price”). The
Buyer shall initiate payment of the
purchase price immediately after receipt
and satisfactory inspection of the
product.
2) Shipping.
a) Costs. Falcons will arrange and
pay for shipping the product to the
Buyer.
b) Risk of Loss. The Seller bears
responsibility for the Product,
including responsibility for the risk
of loss of or damage to the Product,
until such time as the Product
arrives at the Buyer.
c) Inspection and Acceptance. After
receipt of the Product, the Buyer
will have 90 days in which to
inspect the Product, and that
Product is in the same condition as
noted in the master packing list. A
significant discrepancy in the
inventory and/or condition of the
Product, if unresolved by the
parties, is grounds for refusal of the
Product by the Buyer and
withholding of payment. A
“significant discrepancy” is defined
as damaged, missing, or non-
working product. In the event that
such a discrepancy exists, the
Product will be returned to the
Seller at the Seller’s expense, unless
the Seller cures the discrepancy no
later than 90 days after the Buyer
provides written notice of the
discrepancy, or such later time as
may be agreed upon by the parties.
The Buyer will indicate its
acceptance or rejection of the
Product in writing.
3) Warranties and Indemnifications.
a) Warranty of Title. The Seller
represents and warrants that the
Seller is the true and lawful owner
of the property in this agreement
and the title so conveyed is free,
clear, and unencumbered. Other
than as expressly written the
product is being sold “as-is” with no
warranties.
b) Authority to Sign Agreement.
The Seller hereby warrants that the
Seller has the authority necessary
to sign this agreement.
c) Seller Indemnification. The Seller
agrees to indemnify and hold the
Buyer harmless from all claims,
liabilities, damages, loss, and costs
and expenses (including attorneys’
fees), that are the result of any
breach of warranties or
representations of this agreement.
4) Publicity. Seller shall obtain prior
written approval from the Buyer prior to
using the Buyer’s trademarks or trade
names, images or holdings (“Proprietary
Marks”). This applies to all uses
regardless of whether on the web, in
print, or in any other media. Once
approved, similar uses in the same
context and format will not require
additional approval. The contact at the
Buyer for these reviews is Senior
Contract Manager Talia Norduff.
5) Miscellaneous.
a) Nature of relationship. Nothing in
this agreement is intended or is to
be deemed to create a partnership
or joint venture between the Buyer
and the Seller.
b) No waiver. No waiver or
modification of any of the terms of
this agreement will be valid unless
in writing.
c) Force majeure. Delivery by either
party under this agreement is
excused during the period such
delivery is prevented or delayed by
government restrictions (whether
with or without valid jurisdiction),
worldwide pandemic, insurrection
or civil disorder, or any other causes
that are beyond the control of
either party and are not foreseeable
at the time the agreement is
executed.
d) Assignment. Neither party hereto
may assign this agreement without
the written consent of the other,
such consent not to be
unreasonably withheld.
e) Full agreement. This agreement
constitutes the full agreement
between the parties with respect to
the product and supersedes all pre-
existing agreements and
understandings.
f) Applicable law and venue. This
agreement is to be governed for all
purposes by and construed in
accordance with the law of
Maryland and the venue is to lie
exclusively in the courts for Anne
Arundel County.
The effective date of this agreement is
the last date of signature below.
© 2022 University of Maryland Global Campus
All links to external sites were verified at the time of
publication. UMGC is not responsible for the validity
or integrity of information located at external sites.
Buyer Seller
Talia Norduff Senior Contract Manager, CTI
Prudence Trott Falcons Mobile Telephone Rep
Date: 2/13/2016 Date: 2/13/2016
Course Resource
1/17/22, 4:42 PM Page 1 of 1
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Purchase of a Digital Device
EXAMPLE
PURCHASE OF A DIGITAL DEVICE
AGREEMENT
Calum and I have reached an arrangement.
Tech International (“Buyer”), as well as the
Business that provides mobile phones,
The Falcons (“Seller”).
The Seller, on the other hand, wishes to sell to the
Purchase a comprehensive group of 100 cells.
phones within 90 days of signing the contract, with
The costs are summarized here.
Summary of Costs
1. Product: Cell phones = $200 each
2. Quantity: 100
3. Contract type: Typically, for a
product acquisition, Lowest prices,
technically acceptable (LPTA)
4. Period of performance: 60 months
5. Data usage per phone (monthly
without contract): $100 × 60
months = $6,000. Data usage
(monthly with contract): $40 × 60
months = $2,400
6. Video, text, and similar services:
Not applicable to this contract
7. Recycling costs: $75 × 100 =
$7,500
8. Total product cost: $2,675 to
