A vendor managed inventory contract is a legal written document which is made when the manufacturer or vendor handles or manages the inventory of the distributer or vendee. Such contracts consist of terms and conditions which have to be followed by both parties.

Sample vendor managed inventory contract:

This contract has been made effective as on 20th July 2011

This contract has been made by and between Mr. Roger Fredrick who is herein referred to as the VENDOR and Mr. Paul Harshley who is herein referred to as the VENDEE.

This agreement has been made in relation to the fact that the VENDOR shall be responsible for managing the inventory of the VENDEE for a fixed period of time.

The details of vendor are given as follows:

Address: H-7, first floor, Marks square, London

The vendor deals with the manufacturing of Footwear products and owns a company named Fred footwear.

The details of vendee are given as follows:

Address: 4-p, second floor, Hemingway road, London

Duration of contract: 12 months

Termination of contract: 20th July 2012

Total cost of products: $20000

The following are the terms and conditions of the contract:

  • The vendor shall be responsible for checking and updating inventory on regular basis.
  • The vendee must make payment on time to avoid late compensation charges.
  • The vendor must deliver and transfer only top quality products and any complaint in order will be a responsibility of the vendor
  • The vendee cannot return any order which is according to the standards of production.


Roger Fredrick

Paul Harshley

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