Vendor and supply relationships generate a disproportionate share of commercial disputes, largely because the underlying agreements are often thin templates rather than contracts fitted to the actual relationship.
Delivery and performance
- Specific delivery timelines with consequences for delay clearly stated
- Quality and inspection standards, and the process for rejecting non-conforming goods or services
- Quantity and specification defined precisely, not by approximate reference
Pricing and payment
- Price and whether it is fixed or subject to adjustment, and on what basis
- Payment terms and consequences of late payment
- Currency and, for cross-border supply, the exchange rate mechanism if relevant
Risk provisions
- Liability for defective goods or services and any cap on that liability
- Termination rights, including for repeated quality or delivery failures
- Force majeure and how it applies to supply interruption
- Exclusivity, if any, and its scope and duration
What to do next
Review your current vendor agreements against this list, since most were signed as templates and never revisited once the relationship became routine.