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A vendor agreement is a contract between a business and a vendor (supplier) that defines the products or services to be provided, pricing, delivery terms, quality standards, and other conditions.
Key clauses include product/service description, pricing and payment terms, delivery schedule, quality standards, warranties, liability, termination, and dispute resolution.
No. A purchase order is a transactional document for a specific order. A vendor agreement is a master contract that governs the ongoing relationship.
For significant or recurring supplier relationships, a vendor agreement is strongly recommended to protect both parties and ensure consistent terms.
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