A vendor contract refers to all those contracts wherein at least one of the involved parties is a vendor to the other party. A vendor is an entity which is selling i.e. vending a commodity or service to another party which is the purchaser of the commodity. The contract records the information of the parties that have formed the contract.
A vendor contract is of varied types, a few types have been given below with a brief description of the content of that contract:
- A Simple Vendor Contract- This type of a contract refers to a contract wherein the party which is the vendor agrees to supply a certain specified amount of the commodity being traded, to the buyer. Here the vendor might be a wholesale vendor or a retail vendor etc.
- A Master Vendor Contract – This type of a contract refers to the contract which is signed between a vendor supplier (i.e. a vendor or supplier who sells commodities to a retail vendor who then retails the commodity) and a retail vendor (i.e. the vendor who sells directly to the consumers).
- A Retail Vendor Contract – This type of a contract refers to those contracts which are signed between a retail vendor of a commodity and a consumer or a buyer of the commodity. Here the vendor is a retail vendor.
Such contracts are prepared and signed with the motive of formalizing the deal. The contract records the details of the item/ commodity which are being traded like its type etc. It also gives the quantity being traded, the price and other relevant information about the deal. The contract has a heading which gives the terms of the contract which must be complied with; any violation of any of the terms by either party is punishable by law.