Discussion in 'Business & Tax Advice' started by kharm, Feb 7, 2014.
Does Purchase Order mean they agree to your terms? Would I be better off getting a contract set up?
Not necessarily. It just means they are placing an order.
You then fill the order or provide the service and then issue them with an invoice.
You could have a disclaimer stating that anybody placing an order agrees to your terms of business.
Your terms/conditions should be clearly stated.
If you accept the purchase order then it becomes legally binding.
Some purchase orders come with terms, here is 1 example, I don't know if it helps much, but I'll show anyway.
Definition: A written sales contract between buyer and seller detailing the exact merchandise or services to be rendered from a single vendor. It will specify payment terms, delivery dates, item identification, quantities, shipping terms and all other obligations and conditions. Purchase orders are generally preprinted, numbered documents generated by the retailer's financial management system which shows that purchase details have been recorded and payment will be made.
Companies use purchase orders for several reasons:
Purchase orders allow buyers to clearly and explicitly communicate their intentions to sellers
Sellers are protected in case of a buyer's refusal to pay for goods or services
Purchase orders help a purchasing agent to manage incoming orders and pending orders
Purchase orders provide economies in that they streamline the purchasing process to a standard procedure
Commercial lenders or financial institutions may provide financial assistance on the basis of purchase orders. There are various trade finance facilities that almost every financial institution allows to business people against purchase orders such as:
Before Shipment credit facility
Post Shipment credit facility
Trade Finance facility
Foreign Bill Purchase credit facility
Bill retirement credit facility
Separate names with a comma.