The scope of a vendor agreement depends upon the requirement of the recipient and supply from the vendor. Thus, the first step is to define the scope of supply of services or goods followed by the determining the criteria and parameter of the performance of the supply. Thereafter come the provisions of term of the contract, consideration, payment terms, representation, warranty and liability followed by governance and jurisdiction of the vendor agreement. There may be multiple other clauses for protection of data, privacy, safety and security added with personal information and intellectual property rights.