Vendor Agreement

A Vendor Agreement is an agreement entered into between vendors of products and services, and any individual or business owner. It states the provisions and conditions of service that a contractor must abide by and the business owner must ensure. Such details as the specifics of the service to be provided such as date, time and location must be mentioned in the agreement.

A Vendor Agreement must ideally be accompanied by a Statement of Work. The agreement becomes valid on being signed by the vendor and the individual or business owner.  A vendor agreement is necessary for setting out the terms of expectations between the parties and minimizing the risk of conflict and confusion.

Draft Your Vendor Agreement Online
At INR 6999

What You'll Get In The Package

Inclusion

  • Introduction call for a consultation with the lawyer to get to know your requirements for the Vendor Agreement and regarding the work that will be done together
  • Documents Checklist
  • Verification of necessary documents
  • Drafting of the agreement
  • Draft Vendor Agreement will be sent to you for feedback

Exclusion

  • The lawyer shall not undertake any additional work apart from the vendor agreement
  • You may hire the lawyer for any Startup related disputes that you may face

Information Required for Drafting Vendor Agreement

  1. Information regarding the Vendor and the Business Entity
  2. Information about Goods & Services to be provided
  3. Information about Deliverables

Procedure for Drafting Vendor Agreement

  1. You must hire the top Startup lawyers in your locality to help you draft a Vendor Agreement tailored to meet your specific needs and circumstances.
  2. The Vendor Agreement shall be drafted and sent to you for approval.
  3. The Vendor Agreement shall be drafted incorporating your suggestions(if any).

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FAQs

What is a Vendor Agreement?
A Vendor Agreement is an agreement that lays down the provisions and terms of work that is to be performed by a vendor. The basic information in such an agreement includes time, date and location of the services to be provided.
What are the features of a Vendor Agreement?
The necessary features of a vendor agreement are laying down the cost, products and services, security for conflict resolution, dates for delivery or product or service, etc. It is essential that a vendor agreement is thorough with respect to the terms and conditions of the agreement to prevent any future conflicts as well as to prevent losses for yourself as well as the vendor. You should ensure that the interests of your vendors are served properly so as to increase your market repo. If word goes out in the market that your company is incompetent or inconsistent in dealing with vendors, it may lead to your reputation in the market going down, essentially putting you in the risk of losing vendors. Further, you must ensure that your interests are best served in every dealing to increase profits and diminish losses.
Why do I need to have a Vendor Agreement?
The advantages of having a Vendor Agreement are as follows: 1. Increase in Efficiency: you clearly define the security policies, financial and other such particulars that are required for the same which leads to an increase in efficiency. 2. Management of Risk: you provide a detailed description of rules, regulations, duties of the parties to the agreement and may even identify the risk areas in the specific agreements accordingly. 3. Management of Relationship: you make provision for developing an effective vendor-business relationship by laying down the rights and liabilities of both parties and you can also maintain longterm relationships with the help of this.
Why is a Vendor Agreement required?
A well-written Vendor Agreement clearly lays down the terms and conditions the rights and liabilities of the vendors as well as the business entity. You may follow the following steps to help you frame a structured Vendor Agreement: 1. You must hire the best Startup lawyers to help you draft an agreement that is good in law and well-written 2. You must ensure that the time-frame for which the agreement is being entered into is mentioned 3. The details of the parties, including company names, addresses and other details must be mentioned 4. The vending license must be mentioned within the agreement 5. The rights and liabilities of the parties involved should be mentioned clearly including the dates of deliveries to be made, taxes to be paid, the manner in which the deliveries are to be made etc.
Why is it important to put representations and warranties?
It is important to include a representations and warranties section in a Vendor Agreement as it sets out the representations and warranties that the parties are willing to enter into. Some of the representations and warranties that may be entered into are as follows: 1. The ability of the vendor to enter into agreements and not be prevented from doing so 2. The ability of the vendor to provide the required services including expertise and qualifications 3. The work that is to be done should not infringe intellectual property rights of any parties including any third parties
Why is it necessary to have a confidentiality provision?
When you are entering into a Vendor Agreement, you must necessarily include a confidentiality provision so as to ensure that any information shared and discussed must not be shared with any third parties and that such information must only be for the purpose of service that is specified in the agreement and for no other purpose. It must also mention the liabilities that may be incurred when such information is disclosed and that it should be destroyed at the request of the disclosing party.
What provisions should be made for liability determination?
The Agreement must make provisions for limiting the liability of the vendor as well as the business in case of any dispute. Liability may be limited to the cost of service to be provided, the duration of the same, etc. You must also include provisions regarding who should be paying the losses incurred, if any.
Why should there be a dispute resolution provision?
A Vendor Agreement should contain a dispute resolution clause to determine what dispute resolution mechanism to ensure that the vendor and the business have a predetermined method of resolving disputes. You may choose to go for arbitration, mediation, etc., and mention the same in the agreement. If you choose to go to Court, you must mention the jurisdiction in which you may file the case.