Vendor’s 

Agreement Drafting 

Get your vendor contract agreement drafted and reviewed by legal professionals at INR 2,999/- only

Ebizfiling helps you  prepared clear, customized, and legally valid Vendors Agreement to protect your business interests.

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Vendor’s Agreement 

About Our Service

What is a Vendors Agreement?

A Vendors Agreement is a legally binding contract between a business and its vendor or supplier that defines the terms of supply, delivery, payment, and responsibilities of both parties. It ensures that the vendor provides goods or services as agreed, within the specified time and quality standards.

This agreement helps prevent misunderstandings, delays, or disputes by clearly outlining details such as pricing, payment terms, warranties, confidentiality, and termination clauses. In simple terms, a Vendors Agreement protects both the business and the vendor by ensuring transparency and accountability in all commercial transactions.

Why is a Vendors Agreement Important?

  • Defines Clarity: It clearly outlines the roles, responsibilities, and expectations of both the business and the vendor.

  • Avoids Disputes: A written agreement helps prevent conflicts over pricing, delivery, or service quality.

  • Legal Protection: It provides legal backing in case either party fails to meet the agreed terms or breaches the contract.

  • Ensures Quality: The agreement sets quality standards and timelines, ensuring consistent delivery of goods or services.

Your-Vendor-Relations,-Legally-Secured

When Should You Draft a Vendors Agreement?

A Vendors Agreement should be drafted before starting any business transaction or partnership with a vendor or supplier. It must be in place before goods are delivered or services are provided to ensure both parties understand their obligations. This agreement is essential when a business hires vendors for regular supply, outsourced services, or project-based contracts.

It should also be updated or renewed whenever there are changes in pricing, scope of work, payment terms, or vendor policies. Drafting it early helps prevent legal risks and ensures smooth, transparent business operations.

Why Ebizfiling for Vendors Agreement Drafting?

Ebizfiling provides expert help in drafting a Vendors Agreement that protects your business interests and ensures legal compliance. Our professionals prepare customized contracts covering payment terms, delivery, confidentiality, and dispute resolution as per the Indian Contract Act, 1872. We handle the entire process from consultation to final drafting with precision and confidentiality. Our expert deliverables are, Specific Power of attorneyMortgage DeedForeign Collaboration Agreement, Web Development Agreement, Franchise Agreement and Joint Venture Agreement.

For expert guidance, visit www.ebizfiling.com or call 09643203209 or email to us at info@ebizfiling.com.

Charges for Vendors Agreement

Choose Your Package

ESSENTIAL

2999/-

(All Inclusive)

  • Drafting of Vendor's Agreement

ENHANCED

9999/-

(All Inclusive)

  • Drafting of Vendor's Agreement (Aggregator)

 Key Clauses in a Vendor Contract Agreement 

Scope of Work Clause

Defines the goods or services to be supplied, including specifications, quantity, and delivery timelines.

Payment Terms Clause

Specifies the payment amount, schedule, mode of payment, and penalties for late payments.

Confidentiality Clause

Ensures that sensitive business or client information shared with the vendor remains protected.

Quality Standards Clause

Sets the minimum quality requirements, inspection rights, and procedures for defective goods or services.

Termination Clause

Outlines the conditions under which either party can terminate the agreement before its expiry.

Indemnity Clause

Protects both parties from losses or damages caused by negligence, breach, or non-performance.

Dispute Resolution

Provides a clear process for resolving disputes through negotiation, arbitration, or legal action.

Governing Law Clause

Specifies that the agreement will be governed and interpreted under Indian laws and jurisdiction.

 Documents Required for Drafting a Vendors Agreement 

Documents for Vendors Agreement

  • Certificate of Incorporation or business registration proof of both parties

  • PAN card and GST registration details of the vendor and the company

  • Address proof of both parties (utility bill, rent agreement, or ownership proof)

  • Identity proof of authorized signatories (Aadhaar, Passport, or Driving License)

  • Business proposal or scope of work details from the vendor

  • Payment terms, pricing details, and delivery schedule

  • Existing purchase orders or service contracts (if any)

  • Authorized signatory details and company seal for execution

 Advantages of Having a Vendors Agreement 

Clear Responsibilities

A vendor agreement defines each party’s duties, timelines, and payment obligations to avoid misunderstandings.

Legal Protection

It safeguards both the business and the vendor by providing legal remedies in case of a contract breach.

Quality Assurance

The agreement ensures that vendors deliver goods or services that meet the agreed quality standards.

Payment Clarity

It sets clear payment schedules, modes, and penalties, ensuring smooth financial transactions.

Dispute Resolution

It provides a defined mechanism for handling conflicts through negotiation or arbitration.

Confidentiality Protection

Sensitive business information shared with the vendor remains protected under this agreement.

Operational Continuity

It ensures uninterrupted supply and consistent service performance from the vendor.

Relationship Strength

A written agreement builds trust and transparency, fostering long-term vendor partnerships.

 Stepwise Process of Vendors Agreement Drafting with Ebizfiling 

1

Initial Consultation

2

Information Collection

3

Draft Preparation

4

Client Review and Revisions

5

Final Agreement Delivery

 What Does Ebizfiling Do for Vendors Agreement Drafting?

  • Ebizfiling understands your business requirements and the nature of services or goods involved in the vendor relationship.

  • Our experts draft a customized Vendors Agreement that includes clauses for payment, delivery, confidentiality, and dispute resolution.

  • We ensure the agreement fully complies with the Indian Contract Act, 1872, and protects the interests of both parties.

  • The draft is reviewed with you to include any specific terms or modifications required for your business.

  • Once finalized, we deliver a legally sound, ready-to-sign agreement and assist with related documents such as Service Contracts and Non-Disclosure Agreements (NDA).

FAQs

FAQs on Vendors Agreement in India 

Get answers to all your queries

  • What is a Vendors Agreement?

    A Vendors Agreement is a legal contract between a company and its vendor that defines the terms of supply, service, payment, and responsibilities of both parties.

  • Is a Vendors Agreement mandatory in India?

    While not legally mandatory, it is highly recommended to protect business interests and avoid future disputes.

  • Who can enter into a Vendors Agreement?

    Any individual, company, LLP, or partnership involved in the sale or supply of goods or services can enter into a Vendors Agreement.

  • When should a Vendors Agreement be signed?

    It should be signed before starting any business transaction or exchange of goods or services between the company and the vendor.

  • What is the purpose of a Vendors Agreement?

    The purpose is to clearly outline payment terms, delivery conditions, quality standards, and responsibilities of both parties.

  • Is a Vendors Agreement legally enforceable in India?

    Yes, if drafted properly under the Indian Contract Act, 1872, it is legally binding and enforceable in court.

  • What are the key clauses in a Vendors Agreement?

    Key clauses include scope of work, payment terms, confidentiality, quality standards, dispute resolution, and termination conditions.

  • What happens if a vendor breaches the agreement?

    The business can take legal action, terminate the agreement, or claim compensation for losses caused by the breach.

  • Can a Vendors Agreement be used for service providers?

    Yes, the same format can be used for vendors providing goods, services, or both.

  • Is it necessary to mention the payment schedule in the agreement?

    Yes, payment terms must be clearly stated to avoid misunderstandings or delayed payments.

  • Can a Vendors Agreement include confidentiality terms?

    Yes, it should include a confidentiality clause to protect sensitive business or pricing information.

  • Can the terms of a Vendors Agreement be changed later?

    Yes, both parties can modify the agreement through a written addendum signed by mutual consent.

  • What is the difference between a Vendors Agreement and a Purchase Order?

    A Purchase Order is a single transaction document, while a Vendors Agreement governs the overall relationship and recurring business terms.

  • Is stamp duty required for a Vendors Agreement?

    Yes, depending on the state, nominal stamp duty is payable to make the agreement legally valid.

  • What law governs Vendors Agreements in India?

    They are governed by the Indian Contract Act, 1872, and relevant commercial laws based on the nature of the transaction.

  • Should a Vendors Agreement be notarized?

    Notarization is not mandatory but recommended to add authenticity and evidentiary value.

  • Can a Vendors Agreement be signed electronically?

    Yes, it can be signed using a Digital Signature Certificate (DSC) as per the Information Technology Act, 2000.

  • How long is a Vendors Agreement valid?

    It remains valid for the term specified in the agreement or until it is terminated by either party under agreed conditions.

  • Can a foreign vendor sign a Vendors Agreement with an Indian company?

    Yes, foreign vendors can enter into such agreements, subject to compliance with FEMA and other applicable Indian laws.

  • Why choose Ebizfiling for Vendors Agreement drafting?

    Ebizfiling ensures accurate, customized, and legally compliant vendor contracts that protect your business from disputes and ensure smooth operations.

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