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. Vendor Agreement can be made for many purposes like office supplies, consultant, technology, services. While negotiating a clear vendor agreement one clearly puts the goals, strategies for cost minimization risk factor.
A Vendor Agreement is an Agreement which is made by a business owner who hires a person who will provide specific service or goods as per the requirement. There are various types in vendors agreement as per the requirement. The key points to cover in a Vendors Agreement are date, time & location of service. A Vendor Agreement should get along with the Statement of Work (SoW). A vendor agreement should not comes into operation without Statement of Work (SoW). It becomes enforceable after signing of both the parties.
- With the help of Vendors Agreement, it specifies the limitation of the vendor.
- By writing down the business requirements it minimizes the risk for future
- It states the procedure which the vendor should follow while working
- It helps to gear up the work