Drafting Standard Forms for the Purchase of Goods From Suppliers: RFQs, Quotes, Purchase Orders, Long-Term Agreements

Description

Buying goods from suppliers is a key function of all businesses. The standard forms used during the procurement process are legal contracts which, if not approached thoughtfully, can lead to future disputes between the parties over the terms of the agreement, including “battle of the forms” disputes.

Standard purchasing forms include:

(1) RFQs, which outline the general terms and conditions of the project, pricing, pre-qualification requirements and award criteria,

(2) The seller’s quote or invoice,

(3) Purchase orders, which describe the type of item, quantity and agreed upon price, and

(4) Long-term supply agreements, which enable the buyer to purchase multiple consignments of goods on a long-term basis.

The language buyers and suppliers include in RFQs, quotes, purchase orders or long-term supply agreements to define each party’s legal obligations and remedies can be a determining factor in a future contract dispute between a buyer and supplier. Therefore, each document should clearly address such issues as the quality of the goods, delivery, risk and ownership, termination, and force majeure, and should be signed by both parties.

Listen as our authoritative panel provides legal and practical tips for drafting the standard forms that are used in the purchasing process, including RFQs, seller’s quotes, purchase orders and long-term supply agreements.