4 Things Vendor Agreement Should Contain
Finding these important elements in a vendor agreement means the agreement is a good one and you are less likely to have disputes with your vendor over the agreement.
A Vendor Agreement Should Contain The Scope Of The Product Or ServicesFor a good vendor agreement, you need to make sure it contains the scope of the product or services that are to be delivered. Things are likely to go more smoothly if parties to an agreement know what to expect from each other. The agreement should contain information about how the goods or services will be delivered, the quantity/length of time, and other specific information.
The Price And The Means Of PaymentFor an agreement to be enforceable in court, it needs to have consideration (the price paid). You need to make sure your vendor agreement clearly states the price you are paying for the goods or services. The agreement should also state how you intend to pay the price. This can either be through cash, bank transfer, cheque, bitcoin, or the performance of another service in return. Whatever it is, make sure it is stated in the agreement.
How To Get Out Of The ContractThis essentially means that the agreement should state what a party can do to be free from further obligations. In a lot of instances, this means that parties have to perform their own obligations in the contract. If it is an agreement that goes on for a long period of time, the contract should state when this time period expires. If it is for an indefinite period, the vendor agreement should state so.
What Happens If A Party Fails In Its Contractual Obligations?This means, what should happen if one of the parties breaches the contract. The agreement can state the cure (an action to be performed) that will free parties from liability. If you are dealing with a huge vendor, this part of the agreement will likely state that disputes will be resolved through arbitration instead of litigation. This part can also state that a serious breach means all parties are free from the obligations of the contract.