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)

Why it is usefull ?

If you are availing any service through a third party and are selling it as a package on your portal, or are tying up with one particular service provider for any service, say pick up and transit of all your orders, or something along those lines, you would require a vendor agreement.

Advantages of a Vendor Agreement

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.

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.