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Home / Purchase Order Template

Purchase Order Template

Most larger organisations will have an e-procurement system but if you need to use a paper or E-Form  PO then it’s still a legally binding document

A purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It is used to control the purchasing of products and services from external suppliers. (source Wikipedia)

When using a Purchase Order be aware of the Battle of the Forms

A battle of the forms arises when two businesses expect the contract to be concluded on their own terms even if they are very different. Supplier A offers to buy goods from supplier B one issues a PO with their terms and the other issues a delivery note stating that acceptance is on their terms. In this situation, the battle is won by the party who fired the last shot, that is the party who put forward terms not explicitly rejected by the recipient.

To avoid Battle of the Forms most organisations use their own standardised contracts.  Depending on the contract value this often becomes a negotiation between the buyers or lawyers instead.

Typically after a contract is signed this is accompanied by a PO usually accompanied by its own set of terms and conditions. In this instance, the contract should contain provisions to clearly state that the contract terms take precedence.

Adapt the purchase order to suit your needs. PO terms and conditions have not been included in the template, however, there are online legal templates you can purchase to make sure your terms and conditions remain valid and governed by the laws in the UK or country in which the terms are supposed to govern.

If you want more templates check out the A-Z premium documents


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