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  2. Legally binding contract
    • According to 2 sources
    A purchase order is also considered a legally binding contract between the buyer and the supplier once both the parties agree on the terms and conditions of the document. It represents the first handshake between the parties and builds transparency and trust to ensure the material’s smooth processing to the delivery site.
    In general terms, a purchase order (also known as a PO) is a document sent from a buyer to a seller, distributor, or manufacturer requesting to purchase a product. Plus, a purchase order becomes a legally binding contract after the seller accepts the order.
     
  3. People also ask
    What is the difference between a purchase order and a contract?Let’s distinguish between a Purchase Order (PO) and a Contract. A Purchase Order is a formal document issued by a buyer to a supplier, outlining the specific products or services the buyer intends to purchase. A Contract is a legally binding agreement between two or more parties that spells out the parties’ terms, conditions, and obligations.
    Does the seller have to accept the purchase order?Note that the seller does not have to accept the purchase order. It isn’t considered a legal contract until it’s accepted by the seller. A contract is a document that outlines descriptions and costs of goods.
    Can a purchase agreement and purchase order be combined?However, both contracts (purchase agreements) and purchase orders can be combined if the parties find it convenient and efficient. For instance, a buyer and a seller can sign a general-type agreement and then use POs for every business transaction.
    When does a purchase order become a legally binding contract?Plus, a purchase order becomes a legally binding contract after the seller accepts the order. Once accepted, the buyer is legally obligated to submit payment for the product, and the seller is legally obligated to deliver or produce the product.
     
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  9. Is a purchase order a contract? | Acrobat Sign - Adobe

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  12. Purchase Orders, Purchase Agreements, & Contracts | Ironclad

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  15. Purchase Order Law | UpCounsel 2024

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