Aspect Present In A Purchase Order

Aspect present in a purchase order: The purchase order agreement discussed below is between Udhayam printers and Foxconn India Private Limited, where the former is the seller and the latter is the buyer. This purchase order has been issued by the buyer (which is the normal procedure). To avoid legal action, the following terms are including in Purchase Order like: 1. The description of the material and the quantity needed are indicated clearly which reduces vagueness like for example, Item

Parts and Description

Unit

Quantity

Unit price

amount

00010

EPC0010008

PC

10000

0.300

3000

2. The order date and number has been given in the right hand corner which is the basis on which further correspondence with the buyer can be made by the seller. 3. A mention about the acknowledgement has been given in the note at the bottom of the P.O. where it is clearly says that if the seller doesn’t sign the order and return within 7 days, the P.O. will become invalid.

4. Price: Price is clearly mentioned and there is no any ambiguity in the price (Unit

price), the transits insurance as per the P.O. is to be done by the seller as it is given in the item 5 of the P.O. this is an effort taken with respect to protecting the interest of the buyer. Again in the Purchase order a note is given, which is mentioned as important and it goes as follows “Final price and quantity of the P.O. would be effective according to the actual delivery notice with requested quantity”. This clearly explains the risk for goods as well as lawful consideration clause of the purchase agreement. 5. Time of Shipment: The delivery time given can be said as reasonable since a gap of

about 7 days is given.

6. Terms of payment: The settlement of payments has been done in Indian rupees

which is given as (Currency: INR) at the right hand corner. The payment terms are given in the P.O. which in this case is “45 days after GR”. The destination to which delivery is to be made is also given. 7. Quantity: Quantity of the product is clearly mentioned (1000), there is no any vague

for shipment.

8. Description: The product description is mentioned properly or clearly as

EPC0010008 rejected Sticker. 9. Inspection: Manufactures inspection report should be attached to the shipping

documents.

10. Contingency Clause: The safety of the goods during transits has been given higher

importance where it has been mentioned in items 6 and 10.through the purchase order is between two domestic companies, the kind of packing employed has been adapted to the export standards and it has also been mentioned that all documents and out packaging should be marked. 11. Arbitration Clause: The clause of arbitration with relation to the terms and

conditions are mentioned that the purchase agreement has to be executed by both parties. The purchase has been duly signed and it has also been authorized by the seller. This authorization is very important to make the agreement to become valid.