A vendor agreement is a business contract in which a seller of goods or services agrees to sell specific goods or services to a business, and the business agrees to buy the specific goods or services. A vendor agreement should be in writing and include specific terms such as (1) a description of the products or services (the scope); (2) the price of the products or services; (3) payment terms; (4) the time period during which the products or services will be delivered; (5) the circumstances under which the parties may terminate the agreement; (6) designation of confidential information and the agreement to keep it confidential; (7) disclaimers of warranties; (8) indemnifications; and (9) the place and manner of resolving disputes related to the agreement.

In Montana, as in other states, a vendor agreement is a legally binding contract between a seller (vendor) and a business for the provision of goods or services. Montana law does not prescribe a specific format for vendor agreements, but it does require that contracts be made in good faith and that they comply with general contract principles, such as offer, acceptance, consideration, and mutual assent. The elements listed (1-9) are typical components of a comprehensive vendor agreement. Including a clear description of the goods or services, pricing, payment terms, delivery schedules, termination conditions, confidentiality clauses, warranty disclaimers, indemnification provisions, and dispute resolution mechanisms helps to ensure that the expectations and obligations of both parties are clearly defined and legally enforceable. It is advisable for vendor agreements to be in writing to provide a clear record of the terms and to facilitate enforcement. In the event of a dispute, Montana courts would interpret the agreement based on the actual language of the contract and the intent of the parties. It is recommended that businesses consult with an attorney to draft or review vendor agreements to ensure they are compliant with Montana law and to address any industry-specific regulations that may apply.