How to Make a Vendor Contract

A vendor contract clearly defines the services that will be provided by the vendor to the business owner.

In the course of running a business, there will be times when you need to work with outside vendors. It is not required that you draw up a contract before you begin work, but it is the best route. A vendor contract protects both your and the vendor's interest, and it clearly defines the services that will be provided.

Instructions

1. Begin the contract with a clear definition of who the vendor is and who the business owner is. Simply, the vendor can be listed as "Selling" services and the business owner as "Buying" services.

2. Define which goods or services will be provided, the cost of the services and time lines for delivery of the services. Pay attention to specifics, as each should be clearly explained and documented so both parties understand and agree.

3. Document information on how and when payment will be received by the vendor. Common payment time lines are 30 days.

4. Include information on what happens if the contract is terminated or if one party breaches the contract by not fulfilling the obligations. Be clear on how any disagreements will be resolved.

5. Have your lawyer look over the contract to make sure nothing has been missed or omitted.

References

• Sample vendor contract
• Writing a basic vendor contract
• How to write a vendor contract