The supply agreement is the frame. The purchase order changes it.

A fixed price against an input cost that is not fixed

A price held for the term with no index and no pass-through moves the whole of raw material and freight movement onto one side. Where an increase mechanism exists, check what triggers it, whether it is capped, how much notice it needs, and whether the other side may walk away instead of accepting it.

Which document wins on a given order

The framework says its terms apply to all orders. The purchase order says its terms apply and supersede. The acknowledgement says something else again. Settle the hierarchy in the framework, and refuse changes made only on the face of an order.

Defects, and what a defect actually costs

The warranty period is the smallest part of it. What matters is whether liability stops at replacing the part or extends to removal, reinstallation, recall and a customer's stopped production line. A systemic defect clause can turn a component price into a very different number.

Your distributor is bought by a competitor

Territory and supply agreements outlive the companies that signed them. A change of control right, and a restriction on assignment that runs in both directions, is what stops your route to market ending up inside a rival.

Consequential loss and the stopped line

The exclusion of indirect and consequential loss is where a component supplier's exposure is really decided. Check how loss of production, wasted labour and downstream customer claims are characterised, because a definition that pulls them inside direct loss makes the cap close to meaningless.

Committed material and unamortised tooling

A convenience termination on ninety days leaves raw material bought to a forecast and tooling paid for against a volume that will now never be reached. Attach a cancellation charge to whatever you were required to commit in advance.