oboloo Glossary

Is A Purchase Order Legally Binding

oboloo Glossary

Is A Purchase Order Legally Binding

A purchase order is legally binding and it is a document issued by a buyer to a seller, indicating the type, quantity, and agreed price for products or services the seller will provide to the buyer. It serves as an offer to buy and is legally binding when accepted by the seller. A purchase order is considered legally binding when it is signed by both parties and includes all the necessary details such as the type and quantity of goods or services, delivery dates, payment terms, and any other relevant information. Once the purchase order is accepted, the seller is obligated to provide the goods or services as agreed upon in the purchase order. The buyer is then obligated to pay the agreed upon price for the goods or services. A purchase order is a legally binding document and is enforceable in a court of law.