The purchase order is the written evidence of a contract between the buyer and supplier for the purchase of goods or services at an agreed price and delivery date.¹ The purchase order is a vehicle by which the buyer formalizes the contract with the supplier. It is the supplier’s authority to ship and charge for the goods specified in the order.² It is the purchaser’s commitment for the value of the goods ordered.³ It is a legal document and must therefore contain all the elements of the contract.⁴ It should cover clearly and precisely the essential elements of the purchase to be made in a manner that minimizes any confusion between the buyer and seller.⁵ Most counties use preprinted forms that contain general instructions, standard terms and conditions (generally referred to as “boilerplate” and often printed on the back of the purchase order or on a separate preprinted sheet and incorporated by reference), and adequate space to fully define the specific agreement.⁶ At a minimum, the purchase orderform may be used to describe the essential elements of description, quantity, and price of the goods or services to be purchased; purchase order date and number; supplier’s name and address; delivery date(s) and shipping information; payment terms and buyer’s name, and signature. Most organizations also include standard terms and conditions.⁷ Special terms and conditions, detailed specifications and drawings, and additional supporting information and documents that are part of a particular procurement can be incorporated in the purchase agreement by reference on the purchase order.⁸

⁸ibid, Fifth Edition, 88.