Legal Documents List

Business Sale of Goods (Purchase Order)

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These standard terms are only suitable for sale of goods from business to business. The terms should be incorporated on the back of or attached to a customer's purchase order. The purchase order itself should be signed by a representative on behalf of the business and also by the customer and should provide the company / business details.
 
The actual purchase order should also contain details of the price, (including deposit, VAT and delivery charges) and should include a delivery schedule and specification of any works to be completed. The purchase order should be dated.
 
These standard terms are not suitable for hire purchase, credit or conditional sales where the Consumer Credit Act 1974 would apply.
 
Clauses in this agreement:
 
  • When the customer must pay for their order.
  • The amount of notice the customer must give to cancel their order.
  • Details of guarantees (if any) provided by the business.
  • Complaint details for goods damaged on delivery and losses suffered.
  • When the customer can cancel order due to non-delivery.
  • When title and risk in the goods pass to the customer.
Reasons to buy:
 
All businesses need to have clear terms and conditions of business to reassure customers they are dealing with a professional organisation. For the organisation it provides commercial certainty and clear terms that can be enforced against the customer.
 
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