Manufacturing & Distribution Client Advisory - Why Manufacturers Should Always Use Purchase Order Terms and Conditions

Why Manufacturers Should Always Use Purchase Order Terms and Conditions

Unless manufacturers have written contracts with all of their suppliers, they should always submit purchase orders containing their own standard set of purchase order terms and conditions. A properly worded set of purchase order terms and conditions should always reject any inconsistent terms contained in the standard sales terms of the supplier. With such a provision in the purchase order terms, in the face of directly conflicting provisions between the sellers standard terms of sale and the purchasers standard terms of purchase, on such important issues as warranties and remedies, the purchaser strengthens its position to argue that the terms governing the transaction should default to the terms supplied by the Uniform Commercial Code. The Uniform Commercial Code terms are typically very pro-buyer, providing, among other things, robust protection regarding warranties and remedies.

If you do not have a set of standard purchase order terms and conditions and would like to discuss creating one, please contact Steve Story via email at sestory@kaufcan.com or by phone (757.624.3257).


The contents of this publication are intended for general information only and should not be construed as legal advice or a legal opinion on specific facts and circumstances. Copyright 2017.

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