Conway Schadler

Experienced Attorneys Serving Southeastern Pennsylvania

Call Today

These are common challenges with third-party vendors

On Behalf of | Dec 1, 2020 | Business, Uncategorized |

Working with vendors can be helpful for your business. However, there could be a few different legal issues you run into. Whether it is a vendor that does not deliver on time or one that challenges a contract after it has been signed, it is important to know what to do if you face legal challenges with a third party.

What are some of the common legal challenges with third-party vendors?

Some common legal issues encountered by businesses include violations of your terms and conditions, violations of your intellectual property rights or broken contracts.

Violations of terms and conditions

Violations of terms and conditions included in your contract may result in legal challenges. For example, if you expect the vendor to deliver goods every Friday and to provide you with a specific amount of an item that you need, then that is what they should deliver. However, if they do not bring you the items you need or fail to deliver on time, then they could be violating the terms and conditions of the contract and opening themselves up to a case over a breach of contract.

Violating intellectual property rights

Be clear with third-party vendors about how you want your branding or logos to be used. Some businesses do not want to be used in promotions for third-party vendors, and others have specific requirements for using their information. Make sure you take time to think about what you want before signing any contract with a third-party.

Breaching a contract

If a vendor does breach the contract, your business may suffer as a result. It is important that you have information in your contract on how to handle breaches if and when they occur. Whether it is arbitration or going to court, you need to know the next step.

How can you prevent issues with a third-party vendor?

If you want to prevent issues with a third-party vendor, the best thing you can do is to do your research before selecting whom you want to work with. When you work with an external partner, you want to be sure that they have a history of delivering on time to other clients and that they have not violated contracts in the past. It is important that you make sure that a vendor is actually needed, because it is much safer, legally speaking, to do work yourself than to hire out.