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Table of Contents


What is a vendor contract?


If your freelance business focuses on sales, or you're an event organizer, there are times when you'll need a vendor contract. There's a high chance you'll need a vendor agreement regularly.

Having access to a vendor agreement template makes it easy to replicate what works and helps you avoid writing a contract for every opportunity coming your way.

A vendor agreement typically includes two parties, the vendor and the organizer. Usually, the vendor sells goods or services at an event run by the organizer.

Note: Get instant access to your vendor contract template today, sign-up now for Bonsai, and we'll guide you through the process in just a few clicks.

Why you need a vendor agreement


Vendor contracts are necessary to align on the specific details of what both parties have previously agreed on.

This legally binding agreement protects both parties by law should the contract terms be broken. As a freelancer or small business owner, this vendor contract helps identify payment terms, applicable laws and gives a clear overview of the vendor's promised services.

What should be included in a vendor contract template


There are a few specific clauses that your vendor agreement needs to have to be a legally abiding business contract.

The legal agreement should include the delivery date of services, the fixed price of services, and general terms, including pay, the cancellation process, and workflow for a dispute.

If you're looking to build your own vendor agreement, then read on to get a clear overview of clauses we deem as absolutely necessary for these types of legal documents.

Scope of services or product

Your vendor contract should give a clear overview of the scope of services you're expecting from a vendor. What are they selling, how much of the product will they have, and at which event are they selling? Get all of these questions answered upfront.

A few types of products need to be specified here if your vendor is selling them. For example, if the vendor is selling raw materials, tobacco, food products, or alcohol, you'll also want to note this down.

Contract Length And Duration

Vendor contracts need to clearly outline the length of the contract and the duration of sales hours within that time. Are you hiring a vendor for a three-day event? Or, will this vendor have a semi-permanent place at your market? Make sure this is clear.

Client responsibilities

Vendor agreements also need to outline the client's responsibilities. What is the client responsible for to ensure the vendor's success and to create happy customers all around? Clearly state the responsibilities of the client here to put the vendor's mind at ease.

Payment details

Every retail vendor contract template needs a section for the payment terms and conditions.

  • How much will the vendor be paid or need to pay?
  • What's included with that price?
  • Will the cost of services be per hour, per event, or something else?
  • When will the payment take place, and in what quantity?

Street vendors typically earn around $50,000-$53,000 in the US per year—keep this in mind when deciding on payment. Lastly, include any information necessary to submit an invoice.

Termination of contract

Unfortunately, there may come a moment when you need to terminate the vendor agreement.

However, if you're not clear about why this may happen in your vendor contract, then it's highly likely that either party will pursue legal action. Outline what reasons warrant the immediate termination of your vendor contract and the process for doing so.

Other factors

All vendor contracts are different. Despite that they can be built from the same template, each business relationship will be unique.

This clause is to add anything specific to your vendor contract that will change case by case. In doing so, you won't need to change your entire vendor agreement template every time you secure a new vendor.

Sample vendor contract template  


Here you have your vendor agreement template ready to adapt to your needs for each case. All you need to do is fill in the blanks and use our recommended suggestions for clauses from above.

What's the benefit of using Bonsai instead of editing a template yourself?


Vendor contracts, freelance contracts, events contracts, related contracts, no matter what template you need, you'll have access to all of them via Bonsai.

Plus, all of the templates on the platform have been legally vetted and pre-filled with the information you need.

How to create a vendor agreement with Bonsai


Vendor contracts in Bonsai are simple and quick to make—they're already 90% there!

All you need to do is sign up for the platform, select the contract you need, and fill in the blanks. For example, enter your details and your client's details. Then, send the contract on its way and start working with your new vendor.

Vendor contract template FAQs


There are couple of questions we regularly see when it comes to vendor agreements. Let's get those answered for you now.

How can I get out of a vendor contract?

Vendor contracts are legally binding. If you need to cancel or terminate a contract in a way that's not stated on paper, then it's highly likely that you need to seek legal advice from an attorney or law firm.

Street vendors, like every vendor, have a certain amount of legal rights and are protected by their contract terms. If you want to get out of that contract, you'll need written consent from all parties involved or to be represented by a lawyer.

What is the difference between a service agreement and a contract?

Goods or services agreements and contracts are slightly different; however, depending on the wording, both can be legally binding.

Typically, an agreement is more informal. Whereas, a contract is a way of formalizing an agreement and is often what any business requires to start working with a freelancer.

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