Vendor Agreement

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What is a Vendor Agreement?

It is a comprehensive agreement covering various aspects of a relationship with a vendor. It provides for the manner according to which the work has been performed by the vendor. Generally, agreement covers 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 (for example-a trade exhibition) where several vendors will be selling their wares.

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Advantage

1

It 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

The agreement can be made to specify exactly how the vendor is going to work. On the other hand, the vendor may have it specify that the space to be allotted, any amenities, mode of payment.

3

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.

4

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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