From missed inventory deliveries to disputes over liability and confidential information, problems with vendors can disrupt a retailer’s operations and expose the business to high costs, making careful contract review essential before an agreement is signed. In an article for Total Retail, Galloway Director Andy Waters outlines nine contract provisions retailers should review to help protect their businesses and prepare for potential disputes.
“For retailers juggling day-to-day operations, reviewing vendor contracts can easily fall down the priority list,” Waters writes. “However, the terms of those agreements can have significant consequences when problems arise.”
The article addresses payment schedules, material breach, indemnity, confidentiality, and other key terms. Waters also explains how provisions governing dispute resolution, consequential damages, and attorneys’ fees can affect the costs and risks of a vendor relationship.
