Businesses must depend on vendors for goods and services. It means specific requirements from both the organization and suppliers. That is why we need a well-written agreement clearly outlining the terms of the relationship. It is the first step towards ensuring all the vendors fulfill their promises throughout the business relationship. It protects companies from future compliance risks, disputes, and delivery failures.

Apart from outlining obligations and conditions, the vendor agreement also states the consequences of a breach of contract. So, if either party fails to comply with the terms, there will be clearly stated legal and financial consequences. However, businesses must first create a competent agreement to reap the full benefits of a well-executed supplier contract. Keep reading this blog to learn how to draft a vendor agreement that safeguards your company.