Question
How do I know if my vendor contract will hold up legally?
We signed a deal with a vendor, but I want to be sure it will hold up if they don’t deliver—what makes a contract enforceable?
Answer
A strong vendor contract protects your business if the vendor fails to deliver. In general, a contract is enforceable if it includes:
- Offer and acceptance – One side makes a clear offer, the other accepts.
- Consideration – Each side provides something of value (goods/services for payment).
- Capacity – Everyone signing has the legal authority to bind their company.
A contract may not hold up if:
- Its subject is illegal or impossible.
- Fraud, coercion, or misrepresentation occurred.
- A signer lacked authority.
Clear and complete terms—such as payment, timelines, and remedies—can make a contract easier to interpret or enforce if issues arise.
What to consider in your specific situation
While these rules apply broadly, each contract can raise unique issues. Your contract’s enforceability may depend on:
- How clearly terms are written.
- Whether all signers had authority.
- The type of goods/services covered.
- State or local laws.
- Any vague or missing clauses.
Because each agreement is different, you can use Rocket Copilot to get more information about your contract or request a Legal Pro review.
At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.
Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
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Explore more breach of contract questions & answers
Explore more questions about enforcing a contract that’s been breached
If another party breaks the agreement, you may need to take action to enforce your rights. These questions explain how to make sure your contracts hold up and what enforcement options exist.
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- Can my business enforce a contract when installation work is left unfinished?
- How do I know if my vendor contract will hold up legally?
- When can a third party enforce a business contract?
- See even more questions about breach of contract
Explore Rocket Lawyer solutions that can help you move forward
Whether you’re drafting agreements, reviewing contracts, or starting a business, Rocket Lawyer offers expert support to make legal tasks easier and more affordable.
- Get your contract reviewed by Rocket Copilot or a Legal Pro
- Connect with a Legal Pro for quick answers to questions
- Make personalized documents that are vetted by lawyers
- Get help forming your business and submitting filings
Disclosures
- This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.