Churches routinely rely on vendors to provide products and services that support ministry operations. From copiers and sound systems to roofing projects, software platforms, security systems, and construction services, outside vendors play an important role in helping churches fulfill their mission.
While most vendors operate honestly and professionally, church leaders should be cautious when evaluating claims made during the sales process. Unfortunately, some vendors make promises that are exaggerated, misleading, or simply untrue in an effort to secure a deal.
Sometimes, church leaders are disappointed with a vendor’s performance. This often occurs when the promise of a bargain is not upheld. These situations remind us of the importance of carefully vetting vendors’ claims at the outset.
When clients call us to complain about a vendor, the problem can often be traced back to the guarantees made during the sales process. A company may have asserted a product feature that turns out to be missing. The vendor could have exaggerated the quality of their customer service.
Untrue vendor claims need not be due to fraud. Vendors may mistakenly mislead customers. In a hurry to close a deal, salespeople may omit details important to the church. Church leaders may believe they are getting certain features only to learn afterwards the product does not perform as promised or expected.
Church leaders should consider every aspect of each new product or service. It is important to weigh the importance of the benefits the church needs the most. Must-have features deserve the most attention. If church leaders know a certain characteristic is crucial, they should be careful to include those terms in the final writing.
Some contracts include a clause that excludes oral claims from the transaction. This means handshake promises are unenforceable in a dispute. Church clients may be disappointed when they learn certain verbal claims are unenforceable.
Church officers should ask themselves why they chose a particular vendor over other providers. The difference could be the very qualities that deserve preserving in the service agreement. These features may be added to the contract or supplemented by attaching an addendum.
Many vendors use boilerplate sales agreements for each transaction. The terms of the deal are standardized and apply to all customers. If a customer asks for special features or services, the regular forms may not be sufficient. This is when church leaders should insist on seeing where the special terms are mentioned in the contract.
Sometimes, a vendor’s claims are made in the sales materials. Sales materials include brochures, samples, and marketing stock. The assertions in sales materials may not carry over to the final agreement. Church leaders may insist these claims be added as enforceable parts of the contract.
We advise our clients to read the entire agreement when doing business with a vendor. Some agreements include technical words that have a particular legal meaning. If in doubt, church leaders should seek legal counsel to ensure the terms are understood.
Vendor claims may be observed in different parts of the contract. The part of the agreement that spells out the scope of work may list the promises made. This is the section that details the quantity, descriptions, and particulars of the transaction. Vendor claims may also be included in the terms of the agreement. The terms are often provided as a long list of legal clauses.
Church leaders should be watchful for contracts that reference the existence of another form. This may appear when the sales agreement mentions that “other terms apply.” The other terms could be listed on the vendor’s website or provided upon request only. Other terms could change the meaning of the agreement by taking away promises made or shift liability to the church.
Vendor services can sometimes be disappointing. To avoid legal troubles, be sure all the church’s expectations and vendor promises are part of the written deal.