Legal Definitions - Vendor

Vendor

A vendor is the individual or entity that sells goods, services, or property to another party in a transaction. This term is commonly used in legal and business contexts to identify the seller, particularly in contracts involving the transfer of ownership or the provision of services.

• Example 1: Real Estate Transaction

  A homeowner decides to sell their vacation cottage and lists it on the market. After finding a buyer, they sign a sales agreement to transfer ownership.

  Explanation: In this situation, the homeowner is the vendor because they are the party selling the real property (the cottage) to the buyer.

• Example 2: Business-to-Business Services

  A software development company is contracted by a large corporation to create a custom inventory management system. The contract specifies the deliverables, timeline, and payment terms.

  Explanation: The software development company acts as the vendor because it is providing a specialized service (custom software development) to the corporation in exchange for payment.

• Example 3: Supply of Goods

  A local bakery regularly purchases flour, sugar, and other ingredients in bulk from a food wholesaler. The wholesaler delivers the ingredients to the bakery each week.

  Explanation: The food wholesaler is the vendor in this scenario, as they are selling and supplying goods (baking ingredients) to the bakery.