eSign Your Vendor Agreement Online with Aadhaar
Onboard suppliers in minutes with a legally valid eSigned vendor contract. Governed by the Indian Contract Act 1872. Rs. 15 per signature.
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What is Vendor Agreement?
A Vendor Agreement is a B2B contract between a buyer and a vendor (supplier) that governs the terms of supply of goods or services. It is the everyday workhorse of Indian procurement, covering everything from raw material supply for manufacturers, to IT services for enterprises, to facility management for offices, to private label manufacturing for retailers. The vendor agreement sets out what the vendor will supply, at what price, on what schedule, with what quality standards, and on what payment terms.
Vendor agreements vary from short, standard templates (for low-value recurring purchases) to detailed, negotiated contracts (for high-value or strategic sourcing). A typical Indian vendor agreement covers: the products or services to be supplied, pricing and payment terms (often Net 30, Net 45, or Net 60), delivery terms and timelines, quality standards and acceptance criteria, warranties and returns, intellectual property rights (important for design-sensitive sourcing), confidentiality, indemnification, termination rights, and dispute resolution. For goods supply, the agreement also typically covers packaging, labelling, and shipping terms (often using Incoterms like FOB or CIF for international supply).
GST compliance is a major practical concern in Indian vendor agreements. The vendor must issue GST-compliant invoices with the correct HSN/SAC codes, tax rates, and vendor GSTIN. Many buyer organisations withhold payment until a valid GST invoice is received and input tax credit is verified. The vendor agreement should specify the GST responsibilities, the invoicing schedule, and the consequences of invoice errors. For TDS applicable supplies (such as professional services), the agreement should also address TDS withholding rates and certificate issuance.
Vendor onboarding is a major time sink for procurement teams, often involving collection of PAN, GSTIN, MSME certificates, bank details, and a signed vendor agreement before the first purchase order can be raised. Aadhaar eSign accelerates this from days to minutes: the buyer uploads the vendor agreement to SignSetu, adds the vendor's authorized signatory, and the vendor signs with Aadhaar OTP without ever printing the document. For SMBs with dozens of vendors, this turns vendor onboarding into a real-time process.
Sign your vendor agreement in 3 simple steps
No printing. No scanning. Just drop your PDF and sign.
Upload the vendor agreement PDF
Draft or use your standard vendor agreement template. Save as PDF and upload to SignSetu.
Add buyer and vendor as signers
Enter the name and email of the buyer's procurement authority and the vendor's authorized signatory. Each gets a secure signing link.
Both parties sign with Aadhaar OTP
Each party signs independently via Aadhaar OTP from their own office. Once both have signed, the final vendor agreement is delivered to both inboxes and the vendor can be activated in your procurement system.
Who uses SignSetu for vendor agreements?
Real scenarios where Aadhaar eSign saves days of coordination.
Procurement and sourcing teams
Onboard new suppliers quickly with legally valid eSigned vendor agreements, reducing the time from vendor shortlisting to first order.
SMBs and startups
Use a standard vendor agreement template for all recurring suppliers (courier, stationery, cloud services, facility management) and sign via Aadhaar.
Manufacturers
Lock in raw material supply terms, quality standards, and pricing with suppliers through binding vendor agreements.
Retailers and ecommerce sellers
Formalize private label manufacturing, dropship suppliers, and logistics partner relationships with properly drafted vendor contracts.
Essential clauses in a vendor agreement
Make sure your vendor agreement includes these clauses before you sign.
- Parties (buyer and vendor) with GSTINs and authorized signatories
- Products or services to be supplied with detailed specifications
- Pricing, payment terms (Net 30, Net 45, Net 60), and currency
- Delivery schedule, delivery location, and Incoterms where applicable
- Quality standards, inspection rights, and acceptance criteria
- Warranties, returns, and defective goods procedure
- GST invoicing requirements and TDS applicability
- Intellectual property rights and confidentiality
- Indemnification and limitation of liability
- Term, renewal, and termination rights (including for convenience)
- Governing law and dispute resolution mechanism
Common mistakes to avoid
Legal validity of an eSigned vendor agreement
Vendor Agreements are fully eligible for Aadhaar eSign under Section 3A of the IT Act, 2000. They are commercial contracts governed by the Indian Contract Act, 1872, and for supply of goods, also by the Sale of Goods Act, 1930. Both statutes are satisfied by an Aadhaar eSigned agreement. The Sale of Goods Act deals with implied conditions and warranties in a sale (for example, that the goods match their description and are of merchantable quality) and these protections apply automatically unless the vendor agreement expressly excludes them. Stamp duty on vendor agreements is typically Rs. 100 to Rs. 500 at the agreement rate in most states, though many businesses execute low-value recurring vendor agreements on plain paper via Aadhaar eSign, relying on Section 85B of the Indian Evidence Act, which creates a statutory presumption that a secure electronic record is unaltered. GST compliance is critical: the vendor must be registered under GST (if their annual turnover exceeds the threshold) and issue GST-compliant invoices with the correct HSN/SAC codes. The agreement should specify invoicing requirements, payment terms, and consequences of invoice errors. For TDS-applicable services (professional services, contract work, commission), the buyer must withhold TDS at the applicable rate and issue Form 16A certificates. For vendor agreements with foreign suppliers, additional considerations include FEMA compliance, customs duties, import licences, and GST on reverse charge basis for certain imports. The vendor agreement itself does not require notarization or registration.
Reference: Indian Contract Act 1872 + Sale of Goods Act 1930 + Section 3A, IT Act 2000
Powered by eMudhra
Every signature is processed via eMudhra, a CCA-licensed eSign Service Provider (ESP) authorized under the IT Act, 2000.
Important note
For high-value or long-term vendor contracts, consider using Rs. 500 stamp paper for additional evidentiary weight. Always ensure the vendor is GST-registered and that invoicing terms are clearly specified.
Transparent, pay-as-you-go pricing
Pay only for what you sign. No subscription. No minimums.
Buyer + vendor = Rs. 30
See full pricing detailsFrequently asked questions
Everything about eSigning your vendor agreement in India.
Is an eSigned vendor agreement valid for procurement?
Does a vendor agreement need stamp paper?
What GST details should I verify before signing a vendor agreement?
How should I handle TDS in a vendor agreement?
Can I terminate a vendor agreement without cause?
What is the difference between a vendor agreement and a purchase order?
Related document guides
Other documents you can eSign with Aadhaar on SignSetu.
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