A vendor is a supplier of any good or services to either an individual or a company. When your company is utilizing the goods or services or a vendor, it is very important to have a vendor contract in place. A vendor contract protects your company in the event that there is a dispute between the company and the vendor.
A vendor contract should contain:
- Party names
- Clause stating that all parties agree to the Terms and Conditions
- Confidentiality clause
- Scope of services being provided
- Expectations of both parties
- Terms of the contracts
- Payment of services, amount and payment due dates
- Performance standards
- Deadlines and schedules
- Indemnification Clause
- Termination clause
- Procedure for any default
Contract litigation is often lengthy and expensive. Before signing any contract, you should be sure that you completely understand all portions of the contract. Often times contracts have language that is complex and unclear to those who do not have experience reviewing and/or drafting contracts. Having an experienced attorney review your vendor contract could save you thousands of dollars in the long run.
Some of the most common errors found in vendor contracts are:
- Having non-specific language
- Not having a clause regarding unseen circumstances and the process in dealing with the issues
- Not having a clause that deals with insurance
- Not including a clause that defines what governing law the contract is operating under
- Not having a non-solicitation clause
- Not having a clause that deals with intellectual property, photographs, advertising rights, etc.
- Not having a clause dealing with warranties and liability
If your company is involved in a dispute surrounding a vendor contract, you should act immediately. If you ignore the problem, you could be putting your clients, employee, or even your company’s reputation on the line. Regardless of whether you are the recipient or the supplier, when contract disputes are not handled quickly and efficiently, they consume a great amount of time and resources. If you are involved in a dispute regarding a vendor contract, having an experienced attorney can make a massive difference.