Signing a contract with a supplier might seem routine, but even the most digital and legally-savvy companies—like Legal Allies—know that the devil is in the details. If you want to avoid nasty surprises, here are the 5 key clauses every supplier contract must include, no exceptions.
1. Confidentiality and Data Protection Clause
Why is it essential?
Your suppliers may access sensitive information: client data, internal processes, legal content in development… and with the GDPR in force, any data breach can be extremely costly (both in euros and reputation).
Should include:
- Obligation not to disclose information to third parties.
- Required security measures.
- Legal consequences for breaches.
Legal Allies Tip: Customize it based on whether you handle personal data, intellectual property, or strategic information.
2. Service Level Agreement (SLA) Clause
Why is it essential?
A supplier who responds “whenever they can” isn’t helpful—especially if you depend on timely deliveries (like we do with translators and developers). This clause sets the pace.
Should include:
- Clear response and delivery times.
- Penalties for delays.
- Quality indicators.
Legal Allies Tip: Link this clause to internal KPIs to easily assess performance.
3. Intellectual Property Clause
Why is it essential?
If your supplier creates content, design, software, or even a chatbot script… who owns that creation? If it’s not clearly defined, you could face future conflicts or limitations.
Should include:
- Assignment of rights (total, partial, or exclusive use).
- Restrictions on reuse by the supplier.
- Ownership transfer at the end of the contract.
Legal Allies Tip: Especially relevant in creative, IT, and legal or SEO content contracts.
4. Early Termination Clause
Why is it essential?
Not all suppliers meet expectations. This clause allows you to end the relationship in an orderly way, without legal drama.
Should include:
- Justified reasons for termination (non-compliance, poor quality, etc.).
- Notice periods.
- Compensation (if applicable).
Legal Allies Tip: Make sure it’s balanced so you’re not stuck with an underperforming supplier.
5. Review and Audit Clause
Why is it essential?
In technical or legal services, you need to be able to review what the supplier is doing. This clause opens the door to control and continuous improvement.
Should include:
- Right to audit processes or deliverables.
- Review frequency.
- Access to documentation and metrics.
Legal Allies Tip: Use it to maintain quality standards in key services like legal translations or platform maintenance.
A good supplier contract isn’t just a formality: it’s a management, prevention, and growth tool. These five clauses will help you secure your operations, ensure quality, and maintain legal peace of mind in every collaboration.
Want a custom template with these clauses for your supplier contracts? At Legal Allies, we’ll prepare it in your language and tailored to Spanish regulations. Contact us and protect yourself from the very first signature!
