What is a Vendor?

Vendors are individuals or companies that provide their goods or services to other businesses. They are an essential part of a business’s supply chain as they are key inputs to the creation of products. For example, part manufacturers can act as a vendor of parts to other companies that assemble these parts into a product that will be sold by retailers. In order to maintain these valuable relationships between your business and its vendors, it is important to have a contractual agreement in place.

What is a Vendor Contract?

A vendor contract is an agreement between a vendor and the business that the vendor is supplying its services or goods to. The contract can include a variety of terms and conditions, but most all will establish the type of services or goods supplied, the cost of the service or good provided, and the length or term of the agreement. To protect you and your company, vendor contracts are best put into writing.

Managing Vendor Contracts

It’s not unusual for problems to arise between vendors and the businesses they work with. Perhaps the vendor’s goods or services were not to standard or maybe delivery was not on time. Businesses, and especially small businesses, need be prepared for these vendor disputes. To limit the risk you and your business will face when working with vendors, it’s important to manage your vendors and your supply chain carefully. Having an attorney draft your vendor contracts will help limit your vendors, which in turn will save you costs as attorneys have the ability to negotiate and reduce expenditures.

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