Sample Vendor Contracts – What Is In Them?

What are the common terms or criteria for sample vendor contracts? When you first look at sample vendor contracts they do not seem to make a lot of sense but that is because they use a lot of “whereas and wherefores”. If you take these out they are much simpler to understand, as explained below.

Starting at the beginning:

• The parties to the contract:
  The contract starts by setting out the two people or companies involved. Sometimes they are given a “known as” name for ease of reading the contract.


• Definitions:
  There then follows some definitions of the terms used. This is so that everyone understands what is being referred to if the term is used.


• Statement of work:
  This is the most detailed part of any sample vendor contracts and is where the work to be undertaken is defined. If products are being delivered then they are listed and defined in this section of the contract.
  To make it easier to read, each part of the work or product is listed separately either in a numbered list or under a separate section number.


• Documentation or reports:
  This section lists the documentation to be produced and in the format to be followed. When products are to be delivered this will usually be the invoices and delivery notes. When services are to be provided it could be the reports to be produced as well as invoices etc.


• Staffing:
  This section is used when services are to be delivered and defines the skill levels and sometimes the names of the staff to be used on the project.


• Responsibilities:
  This section details the responsibilities of the parties to the contract. This is particularly important in a service contract. In a product contract it may talk about such matters as who unloads the products and who stores them within the warehouse.


• Payments:
  Any of sample vendor contracts includes this important part. It details such matters as:
  Prices per product or service.Under what conditions payment will be made. This includes deposits, mid contract payments and final payments.Regular payment cycles will be included in vendor product only contracts.Financial penalties for late or poor delivery.


• Quality Measurements:
  Most contracts include some method of measuring the quality of the services or products to be delivered.


• Privacy, Copyrights, Non Disclosure etc.
  All the above are included as standard so that each companies confidentiality and copyrights are preserved.


• Force Majeure: This is information about the processes to deal with the unforeseen.


• Other Legal Clauses:
  Such information as: Ownership of the products and when it happens.Non assignment of the contract.Indemnification from harm.Negligence terms.Taxes due.Insurance required.Country and State for purposes of the governing laws.Legal relationship


• Signatures:
  Perhaps the most important part of any of the sample vendor contracts. Signatures from both parties that are dated, mean that both parties have agreed to the sample vendor contracts in their entirety.

Any of the sample vendor contracts that you read, may seem complex and they do have to have legal terms within them so that they stand up in court, but really they all follow the same structure.

 

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