CHAPTER 14
Purchase Order knows the goods being offered for sale, the price, and the sale conditions, the buyer may submit an order—commonly known as a purchase order, or P.O.—to the seller. In effect, a purchase order is an offer to buy. No contract is formed until the order has been accepted by the seller. Standard clauses are often printed on the reverse side of the purchase order. The parties should be careful that the standard clauses attached to the purchase order are not in conflict with any conditions that the seller has placed on the sale. Conflicting clauses should be renegotiated and changed before the parties sign the contract.
ONCE THE BUYER
Sample Contract: Purchase Order (front side) [buyer’s letterhead] Purchase Order No: [number] Dated: [date] Issued to: [name and address of seller] We are pleased to place the following order, subject to the conditions appearing on the reverse of this purchase order: Model Number [list]
Description [list]
Quantity [list]
Price/Item [list]
Total Price [list]
Subtotal Tax Shipping Total Price Terms of Shipping and Delivery: [specify, including import and export costs and documentation, destinations, delivery times, and insurance requirements]. [signature of buyer]
Sample Contract: Purchase Terms (reverse side) CONDITIONS OF PURCHASE ORDER The Purchase Order on the reverse side is conditioned on the following terms. 1 . A C C E P T A N C E . The Seller is deemed to have accepted the Offer made in this Purchase Order by confirming to the Buyer in writing the Order and the Delivery Date. 2 . D E L I V E R Y . The Buyer has set its own production schedule in reliance on
the delivery period specified in this Purchase Order. If delivery is delayed, the Buyer will incur substantial losses. By initializing this clause, the Seller expressly
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