Vendor Agreement, To make your business easier by providing all the necessary services, you may hire a vendor who is a service provider. A Vendor agreement simply means that a business owner enters into an agreement with a vendor also known as the service provider to supply the necessary good and services which are necessary for the effective running of the business.
For your business to be successful and to attach a goodwill with it, you must hire a good vendor. But it is easy to loose a good vendor when you both do not have any written agreement between, hence in such circumstance you must enter into a vendor agreement.
This Agreement sets the type of service the business owner seeks and what the vendor is rendering, duration and time to deliver the services, about remuneration and mode of payment upon delivery of the services, liability of both the parties, conditions for termination of the agreement, setting down the terms which must be followed by both the parties.
BENEFITS OF HAVING A VENDOR AGREEMENT
- Risk Mitigation.
- Optimization of performance by the Vendor.
- Reduction on unnecessary expenses.
- Long Lasting Relationships.
- Effective functioning of business by regular supply of services.
Vendor Agreement pdf (Sample)
ESSENTIALS OF VENDOR AGREEMENT
- Goods and services to be provided- The vendor Agreement specifies the kind of services which shall be provided by the vendor to your business, specifications about the services will be listed. What exactly the vendor will do must be specified in the agreement.
- REMUNERATION- This agreement consist of the consideration which the vendor will be entitled with in exchange for his performance. The mode and the time for payment will be mentioned, and how much money shall be paid in advance and after fulfilling the vendor’s obligation of providing the services.
- TERMINATION- This Agreement specifies the conditions upon which either party can terminate this Agreement, or you will be able to walk away from the responsibilities and terms mentioned in the agreement. However, this agreement can be terminated upon the period of expiration of the term mentioned in the agreement and will last until the parties do not object.
- CONTRACT BREACH- If it seems for you that the vendor has breached the agreement or if the breach is to such an extent causing you monetary loss, then you are entitled to terminate the agreement without serving any prior notice to the Vendor. The vendor is also entitled with the same rights if the other party causes a breach by violating any terms which are set in the agreement. Vendors may at times, include the terms to settle for any disagreement which may take place by avoiding termination of contract from either of the party.
GET YOUR VENDOR AGREEMENT DRAFTED BY A LEGAL EXPERT
Using a normal template which you may come across online is not the right template to proceed with. Such templates do not necessarily involve all the essential clauses which must be present since all the clauses in the agreement must be drafted keeping in consideration the role of the Vendor and an outline of their rights must be listed. Hence, it is better legally to approach a contract/corporate lawyer who would look into every necessary aspect before drafting a Vendor Agreement. We at VSK & CO ADVOCATES AND LEGAL CONSULTANTS draught commercial, corporate, and IPR agreements from scratch to make sure that you do not face any legal consequences later.