Purchase Contract

Once the vendor has been finalised and negotiations have been completed, a formal purchase agreement is entered into between the firm and the vendor. A Purchase/ sale agreement is a legal document that outlines the terms and conditions related to the act of purchasing goods and services. The terms of a purchase agreement includes specific conditions that both parties agree to comply with as a part of the transaction.

You must ensure that all purchase contracts have laid out Standard Terms and Conditions, which can be developed after seeking legal advice. The purchase contract should protect your interests under all circumstances. Thus, it would be useful to build into the contract terms and conditions in case of failure to deliver as per the contract; this could include penalties for supplying defective goods, making late deliveries, etc.

 

Purchase Order

Purchase order is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer