- First, the contract is being awarded to the Supplier (not some third party) based on their perceived capabilities, quality and value the Supplier offer
- Second, the contract is being awarded based upon Buyer’s assessment of the Supplier’s quality and processes, not the quality and processes of some third party.
- Third, any problems with performance or quality will cause significantly more damage to the Buyer than the Buyer would be able to collect under the Contract.
The one situation where you won't have control is if the Supplier merges with or is acquired by another company as that is not an assignment. Officers of companies have a fiduciary obligation to do do what's best for their shareholders and as such would never be able to agree that they won't merge with of be acquired by another company. If you had concerns in this area you would more likely include what is called a "change of control" provision where if it happens you as the Buyer will have additional rights you may not have had under the Agreement such as being able to terminate the agreement without liability or the requirement grant you certain licenses so you aren't dependent upon the new entity unless you want to be.