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Or how would you differentiate between a purchase order and a contract?
A purchase order (PO) 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. Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a PO by a seller usually forms a one-off contract between the buyer and seller, so no contract exists until the purchase order is accepted
A purchasing contract defines the purchasing and supply of goods or services at agreed prices and conditions. The quantity and value of the purchase orders, limit confirmations, and invoices are released against the contract.
A contract is a legally binding agreement between two or more parties that creates an obligation to do (or not do) a particular task.
Contracts can be formed in a business or personal sense.
A contract may be an oral or written agreement.
Purchase order (PO) is an official offer issued by a buyer to a seller, expressing the consent to purchase an amount of goods for an agreed price.
Purchase orders can only be formed in a business sense where a transfer of physical goods is intended.
A purchase order is a written agreement.
A purchase order (PO) is defined as "a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer" Sending a purchase order to a supplier constitutes a legal offer to buy products or services. Acceptance of a purchase order by a seller usually forms a contract between the buyer and seller. This issue reflects the importance and legal impact of any document bearing the procurement of Goods and/or Services. As from the time the purchasing process has been launched, it is not easy to negotiate the standard PO T&C, hence, the PO T&C have be to formulated in a manner to cover any probable risk, in almost the same way as any contract is done.
In a manner of speaking, both are same. Terms can vary. Normally PO is used for low value purchases and contract for high value.
A purchase order is document issued by buyer as to agree in terms like QTY , price , delivery.& almost dealing with known seller , small amount & low risk
A Contract is document issued by contract section in procurement or legal to agree in all terms . always the price is big & high risk in delivery or amount
Purchase order is a transaction aligned to set of terms and conditions.
A contract is normally aligned to a long-term relationship with specific desirability ,mutually and subsequently agreed when signed.
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