Vendor Agreement

A comprehensive agreement covering various aspects of a relationship with a vendor, including quality of goods supplied, duration of contract and mode of payment.

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What is a Vendor Agreement?

A Vendor Agreement is an agreement stipulating the conditions under which the work is to be performed by the vendor. It is a comprehensive agreement covering various aspects such as the quality of goods supplied or service provided, duration of the contract, terms and mode of payment. Such an agreement would be useful to those hosting a large event (a trade exhibition, for example) where several vendors will be selling their wares.

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Advantage

1

Protects Both Parties A well-drafted Vendor Agreement will minimise risk of future litigation, as the rights and duties of both parties are clearly laid down in the agreement.

2

Lays Down Procedure The agreement can be made to specify exactly how the vendor is to work. On the other hand, the vendor may have it specify the space to be allotted, any amenities available to him and the mode of payment.

3

A well-drafted vendor agreement will minimise the risk of future litigation, as the rights, duties and liabilities of both the parties are engrafted in the agreement.

4

The agreement can be made in such a way to specify exactly how the vendor has to work. On the contrary, the vendor may have it specify the space to be allotted, other amenities available to him, the mode of payment etc.

5

A vendor agreement can provide the way or limit of the service between two businesses i.e. it can specify that one business will provide the products to be sold and the other business will display the products for sale, for a certain period of time.

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