Vendor Agreement Overview and Template

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Lasya Pamidi

Business contracts
Legal
Vendor Agreement
Last updated on April 30th, 2021

What is Vendor Agreement

Vendor Agreement is a legal document which stipulates the provisions regarding the work performed by the vendor. It is a contract which specifies the conditions regarding the performance of certain work.

The key points to cover in a Vendors Agreement are details such as date, time & location of service. A Vendor Agreement should get along with the Statement of Work (SoW). A vendor agreement should not come into operation without Statement of Work (SoW). It only becomes enforceable after both the parties sign the agreement.

Applicable Law

The principles of contract under Contract Act, 1872 would govern these agreements. Further, the Consumer Protection Act, 1986, also applies to all goods and services, excluding goods for resale or for commercial purpose and services rendered free of charge and under a contract for personal service. It protects rights of customers such as right to be informed, right to safety etc.

Goods and Services Tax (GST) is applicable on supply of services at different rates for different categories of services other than a few services which are exempt.

Advantages of Vendor Agreement

Key Elements in Vendor Agreement

Vendor Agreement Template
Download Vendor Agreement Template for you Company when onboarding Vendors
Download
Vendor Agreement Template
Download Vendor Agreement Template for you Company when onboarding Vendors
Download

FAQs

What is the main purpose behind making a vendors agreement?

It basically acts as a composite insurance made by two parties with mutual consent. It is made when you are dealing on the small-scale business, but now by seeing the benefits, the operativity had increased immensely.

Is registration of vendors agreement is required?

There is no such requirement for registration simply singing the agreement is enough to make it functional.

What is the meaning of statement of work?

Statement of work is basically a document which depicts all the details like activities, time period, cost, duties. It is basically done for project purpose to keep the track of work.

Got Questions? Ask Away!

  1. Hey @HarshitShah

    Yes. Any time the terms of the agreement change, this should be documented in a new contract. The new contract should also make clear this contract replaces the old contract.