In the context of an English law agreement what is a ‘preferred supplier’? Might there be any regulatory issues to consider in connection with the appointment of a ‘preferred supplier’?

The Term ‘preferred supplier’ is often used in business, however it has no definitive or clear meaning in English Law. Differing views of the meaning of the term are possible. For example the phrase might be intended to mean that the supplier would fall into one or more of the following (often mutually conflicting) categories or have some other meaning:

  1. • it may not be offered any work but is on an ‘approved’ list and so does not have to repeat certain retendering exercises
  2. • if offered work, it will be offered terms of trade that are no less favourable than those offered to any other supplier
  3. • it will always be offered certain work unless a competing supplier offers better terms
  4. • it will be offered a minimum volume of work

See, for example, ProForce Recruit Ltd v The Rugby Group Ltd, Dunblane

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Jurisdiction(s): United Kingdom
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means: (a) any legislation, regulation, by-law or subordinate legislation in force from time to time to which a party is subject and/or in any jurisdiction that the Services are provided to or in respect of; (b) the common law and laws of equity as applicable to the parties from time to time; (c) any binding court order, judgment or decree; (d) any applicable industry code, policy or standard; or (e) any applicable direction, policy, rule or order that is binding on a party and that is made or given by any regulatory body having jurisdiction over a party or any of that party’s assets, resources or business;

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