If you own a business and you’re going to be working with a vendor, it’s very important to have a vendor contract that you can use. These contracts can be done digitally or in hard copy. The key is simply to have something in writing that defines the relationship.
This is helpful in many ways. It keeps people accountable and ensures that you’re all on the same page. It also can help if there is ever a dispute in the future over the terms of the contract. A handshake deal is a lot harder to define and prove. So what should you put in a vendor contract?
A description of what is to be provided
Whether you’re buying goods or services, the contract should describe what you are purchasing and what you expect. Remember that it may need to specify the number of items that you expect, as well. There should be no confusion over what you’ve purchased.
A timeframe for the delivery
Many contract violations happen when someone misses a deadline, and that’s why it’s critical to have them defined. A shipment that is a month late can be highly detrimental to your business. Just because the contract has been fulfilled doesn’t mean that the vendor’s end of the deal has been upheld if it was fulfilled far too late.
Potential steps during a dispute
Next, the contract could lay out the terms by which you can cancel or end that contractual agreement. It may also discuss the consequences of a breach dispute, or it may lay out how the two of you will approach any sort of dispute in the future.
At the end of the day, the contractor is there to protect you and ensure that this business relationship goes smoothly. Be sure you know what legal steps to take to create it.