![]() An example is a purchase order regarding a shipment of goods abroad. In such a case, buyers are bound to the payment schedule as specified on the purchase order, regardless of whether they actually need the delivery or not.Īdditionally, if the purchase order terms and conditions specify that certain transit costs are borne by the buyer, then the supplier could be protected from breaching the contract if these payments are not made in a timely manner. This is to say the supplier may be unable to recover these costs should the buyer make changes or cancel their order after the purchase order has been received and accepted. If the supplier incurs costs in producing the ordered goods or in preparation for providing a service, these could be sunk costs. On the supplier side, providing certain goods and services could require upfront costs, such as ordering inputs. Protections Afforded to Sellers/Suppliers/Vendors in the Purchase Order Should any of these terms be modified by the supplier, this does not constitute an acceptance. The prices at which said goods or services are to be provided, including any discounts, and specifics about the parties responsible in regard to shipping, taxes, tariffs and other costs which may be incurred,Įach of these elements comprising a purchase order afford protection for both the supplier of goods and services as well as the buyer. ![]()
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