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Vendor agreement template

Vendor agreement: A vendor agreement sets the terms on which a company buys goods or services from a vendor, often using the buyer’s standard procurement terms.

Last reviewed 6 November 2026 · 6 clauses · General guidance, not legal advice

Upload yours for a review and e-signature, or save it as a team template.

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When to use a vendor agreement

  • Onboarding a new supplier
  • Standardising terms across many vendors
  • Procurement with compliance requirements

Vendor agreement template: clause-by-clause outline

Sample starting wording for each clause. Replace the text in [brackets] with your details.

  1. Supply

    The Vendor will supply the goods or services in each purchase order.

  2. Compliance

    The Vendor will comply with applicable laws, including anti-bribery, sanctions and modern slavery laws, and the Buyer’s supplier code.

  3. Invoicing

    Invoices must quote the purchase order number. Payment is due within [45] days of a valid invoice.

  4. Audit

    The Buyer may audit the Vendor’s compliance on reasonable notice once a year.

  5. Data and security

    The Vendor will protect the Buyer’s data with appropriate security measures and report incidents within [48] hours.

  6. Termination

    The Buyer may terminate for convenience on [30] days’ notice, paying for goods or services delivered.

What to check before you sign

  • Are payment terms within your playbook?
  • Is termination for convenience mutual?
  • Are security and incident notice terms realistic for the vendor?

How to send a vendor agreement for e-signature

  1. Draft or upload it. Use the outline above with your own wording, upload an existing document, or save it as your organisation’s template.
  2. Check it against your playbook. Points outside your positions are flagged, and approval rules route it to Legal when needed.
  3. Send it by email. Signers get a plain-language review and a secure link, sign on any device in the order you set, and can suggest changes as tracked changes.
  4. Keep the signed PDF. Everyone receives it with a certificate of completion, and key dates go to Upcoming with reminders.

Vendor agreement template: frequently asked questions

Whose terms should apply, buyer’s or vendor’s?

Whoever has more leverage. Agree in the contract that it overrides terms printed on order forms or invoices.

What is a supplier code of conduct?

A set of ethical, labour and environmental standards a buyer requires vendors to follow.

Is an electronically signed vendor agreement legally binding?

In most countries, yes. E-signatures are recognised for commercial contracts under laws such as the ESIGN Act (US), eIDAS (EU), the Electronic Communications Act (UK) and the Information Technology Act (India). econtracts.ai adds a certificate of completion with each signer’s identity check and a fingerprint of the signed content.

Can I get a vendor agreement I received reviewed?

Yes. Upload it to econtracts.ai and you get a plain-language review: key dates, money and points to check, each quoting the clause it comes from.

Related contract templates

Supply agreement templateSupply agreementMaster services agreement templateMaster services agreement (MSA)Data processing agreement templateData processing agreement (DPA)

This outline is a starting point for discussion, not legal advice, and it is not a complete contract. Laws differ by country and sector; have a qualified lawyer review contracts that matter.