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Vendor Agreement

Vendor agreement template for India. Payment terms, delivery, warranties. eSign for ₹15.

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What is a Vendor Agreement?

A vendor agreement is a commercial contract between a buyer and a supplier of goods or services. It governs the terms of the supply relationship. In India, vendor agreements are governed by the Indian Contract Act, 1872 and, for goods, the Sale of Goods Act, 1930.

Essential Clauses in a Vendor Agreement

  1. Parties — buyer and vendor details
  2. Description of goods/services with specifications
  3. Pricing and payment terms (advance, milestones, credit period)
  4. Delivery schedule and location
  5. Quality standards and acceptance criteria
  6. Warranties and representations
  7. Indemnification for defective goods/services
  8. Limitation of liability
  9. Termination clause with notice period
  10. Dispute resolution mechanism

Download & Sign

  1. Download the template PDF below
  2. Fill in your details (names, dates, addresses, amounts)
  3. Upload the completed PDF to SignSetu
  4. Add all signers and send for Aadhaar OTP signing
  5. Signed document delivered in under 2 minutes
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Stamp Duty & Registration

Vendor agreements generally do not require stamp duty in most states. For high-value contracts, check your state's stamp duty schedule.

Can a Vendor Agreement Be Signed with Aadhaar eSign?

Yes. Vendor agreements are fully eligible for Aadhaar eSign under Section 3A of the IT Act, 2000.

Learn more in our Complete Guide to Aadhaar eSign →

Common Mistakes to Avoid

  • ✗Not specifying quality acceptance criteria — leads to disputes about deliverable standards
  • ✗Vague delivery timelines without consequences for delays
  • ✗Not including warranty and indemnity clauses for defective goods
  • ✗Missing GST and TDS provisions in payment terms

Frequently Asked Questions

Is a vendor agreement the same as a purchase order?

No. A purchase order is a specific order for goods/services under the terms of a vendor agreement. The vendor agreement establishes the overall relationship and terms; purchase orders are issued under it.

What GST provisions should be included?

Include the vendor's GSTIN, applicable GST rate, whether prices are inclusive or exclusive of GST, and provisions for GST invoice compliance. The buyer may need the vendor's tax invoices for input tax credit.

Disclaimer

This template is for informational and reference purposes only and does not constitute legal advice. Laws and regulations change periodically. This template may need modification based on your specific circumstances and state laws. Consult a qualified legal professional before executing any legal document. SignSetu is not responsible for any consequences arising from the use of this template. Last updated: April 2026.

Governing Law: Indian Contract Act, 1872 & Sale of Goods Act, 1930

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