Purchase order clause: Copy, customize, and use instantly
Introduction
A purchase order clause defines the process and terms under which purchase orders (POs) will be issued by the customer for the products or services provided under the agreement. It ensures that both parties have clear expectations regarding order approval, payment, and delivery timelines.
Below are templates for purchase order clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard purchase order clause
This version defines the basic PO process.
The [Customer] agrees to issue a written purchase order for each purchase of products or services under this Agreement, which will specify the quantity, price, and delivery terms. The [Provider] agrees to accept each purchase order in accordance with the terms of this Agreement.
Purchase order clause with pricing and payment terms
This version specifies pricing and payment terms.
All purchase orders issued under this Agreement will include the agreed-upon pricing as outlined in [Schedule X]. Payments for each purchase order will be due [X] days after receipt of the invoice, subject to the terms set forth in [Schedule Y].
Purchase order clause with approval process
This version includes an approval process.
Each purchase order issued by the [Customer] is subject to the [Provider]’s approval, which will not be unreasonably withheld. The [Provider] shall notify the [Customer] of approval or rejection within [X] business days of receiving the purchase order.
Purchase order clause with order fulfillment timeline
This version defines fulfillment timelines.
The [Provider] agrees to fulfill each purchase order within [X] business days of receiving the order, unless otherwise agreed upon by both parties in writing.
Purchase order clause with order modifications
This version includes modification rights.
The [Customer] may modify the terms of a purchase order, including quantity or delivery dates, by providing written notice to the [Provider] within [X] business days prior to the agreed-upon delivery date.
Purchase order clause with cancellation rights
This version allows cancellation of orders.
The [Customer] may cancel a purchase order without penalty if the cancellation is communicated to the [Provider] in writing at least [X] business days before the delivery date.
Purchase order clause with late payment penalty
This version includes a late payment fee.
If the [Customer] fails to make payment within [X] days of receiving the invoice for a purchase order, a late payment fee of [X]% per month will be applied to the outstanding balance.
Purchase order clause with order acceptance timeline
This version defines the acceptance timeline.
The [Provider] shall accept or reject any purchase order within [X] business days from receipt of the order. If no response is received within this time, the order shall be deemed accepted.
Purchase order clause with shipping instructions
This version includes shipping details.
The [Customer] shall provide shipping instructions with each purchase order, specifying the desired shipping method, address, and delivery date.
Purchase order clause with delivery terms
This version specifies delivery terms.
Delivery of products shall be made within [X] business days after the purchase order has been accepted, and the delivery will be made to the address specified in the purchase order, with costs borne by the [Customer] unless otherwise agreed.
Purchase order clause with quantity adjustments
This version allows for quantity changes.
The [Customer] may adjust the quantity of items ordered in a purchase order by providing written notice to the [Provider] within [X] business days after submitting the order, subject to availability.
Purchase order clause with no minimum order requirement
This version eliminates minimum order thresholds.
There is no minimum order requirement under this Agreement. The [Customer] may issue purchase orders for any quantity of products or services as needed.
Purchase order clause with fixed pricing
This version includes fixed pricing.
The pricing for all products and services provided under a purchase order shall be fixed for the duration of the Agreement, and no price increases will apply unless agreed upon in writing by both parties.
Purchase order clause with return policy
This version includes a return policy.
The [Customer] may return products purchased under a purchase order within [X] days of delivery if the products are defective or do not meet the specifications set forth in the purchase order.
Purchase order clause with acceptance of goods
This version governs acceptance of goods.
The [Customer] shall have [X] days from the delivery date to inspect the products. If no written notice of defects or non-conformance is provided within this period, the goods shall be deemed accepted.
Purchase order clause with exclusive order terms
This version specifies exclusive terms.
All purchase orders made by the [Customer] shall be governed exclusively by the terms of this Agreement, and no additional or conflicting terms from the [Customer]’s purchase order shall apply unless agreed in writing.
Purchase order clause with order tracking
This version includes tracking features.
The [Provider] shall provide the [Customer] with tracking information for all shipments made under a purchase order, including the carrier, tracking number, and estimated delivery date.
Purchase order clause with no substitutions
This version prevents product substitutions.
The [Provider] agrees to supply the exact products and quantities specified in the purchase order. Substitutions of products or services shall not be permitted without the prior written consent of the [Customer].
Purchase order clause with fixed delivery date
This version defines a fixed delivery date.
The delivery date specified in the purchase order is fixed, and the [Provider] shall make reasonable efforts to deliver the goods on or before that date. Any delays shall be communicated to the [Customer] immediately.
Purchase order clause with prepayment requirement
This version includes prepayment terms.
The [Customer] agrees to prepay for all purchase orders before shipment. The [Provider] will issue an invoice for the full amount of the purchase order, and the [Customer] shall make payment within [X] days.
Purchase order clause with product warranty
This version includes a warranty on products.
All products supplied under a purchase order shall be covered by a warranty for [X] months from the date of delivery, ensuring that products are free from defects in materials and workmanship.
Purchase order clause with priority order fulfillment
This version prioritizes certain orders.
The [Provider] agrees to prioritize the fulfillment of purchase orders from the [Customer] in cases of supply shortages or capacity constraints, based on the order value and urgency as determined by the [Customer].
Purchase order clause with dispute resolution for order issues
This version includes dispute resolution.
In the event of a dispute regarding any purchase order, including product quality, pricing, or delivery, both parties agree to resolve the issue through mediation before taking any further legal action.
Purchase order clause with payment upon receipt
This version includes payment terms upon receipt.
The [Customer] shall pay for all products purchased under a purchase order upon receipt of the goods, with payment due within [X] business days of the delivery date.
Purchase order clause with tax inclusion
This version includes taxes in the order total.
All prices specified in the purchase order include applicable taxes, duties, and fees. The [Customer] shall not be responsible for any additional charges unless specified otherwise.
Purchase order clause with cancellation for non-performance
This version includes a cancellation clause for non-performance.
If the [Provider] fails to meet the delivery terms or specifications outlined in the purchase order, the [Customer] may cancel the order and seek a refund for any prepayments made.
Purchase order clause with ordering system integration
This version includes system integration for orders.
The [Customer] and [Provider] agree to integrate their ordering systems to allow for automatic generation and processing of purchase orders, ensuring a seamless ordering process.
Purchase order clause with purchase order number reference
This version requires a reference number for tracking.
Each purchase order shall include a unique purchase order number, which must be referenced on all invoices and shipping documents to ensure proper processing and tracking.
Purchase order clause with product inspection upon delivery
This version includes an inspection upon delivery.
The [Customer] shall inspect the products upon delivery and notify the [Provider] within [X] business days if any defects, damages, or discrepancies are found.
Purchase order clause with volume discounts
This version includes discounts for large orders.
The [Customer] shall be entitled to volume discounts based on the quantity of products ordered, with discount rates outlined in [Schedule X] and applicable to all applicable purchase orders.
Purchase order clause with scheduled deliveries
This version includes scheduled deliveries.
The [Provider] shall deliver the products specified in the purchase order according to the delivery schedule agreed upon by both parties, with no deviation from the agreed dates unless otherwise authorized by the [Customer].
Purchase order clause with additional charges for expedited orders
This version includes expedited order charges.
The [Customer] may request expedited delivery of products under a purchase order, with additional charges for expedited processing and delivery as specified in [Schedule Y].
Purchase order clause with purchase order approval process
This version includes approval steps for purchase orders.
The [Customer] shall submit a purchase order to the [Provider] for approval. The [Provider] will notify the [Customer] of the approval or rejection within [X] business days.
Purchase order clause with third-party vendor management
This version involves third-party vendors.
If the products ordered are sourced from a third-party vendor, the [Provider] shall manage all third-party relationships, ensuring timely delivery and quality compliance as per the purchase order terms.
Purchase order clause with item substitutions upon customer approval
This version allows for item substitutions with approval.
If a requested item is unavailable, the [Provider] may substitute it with a similar product of equal or greater value, but only after receiving written approval from the [Customer].
Purchase order clause with order completion guarantee
This version includes a completion guarantee.
The [Provider] guarantees to complete all orders within the specified delivery window and will be liable for any delays that result in the failure to meet this timeline.
Purchase order clause with advance payment requirements
This version includes advance payment.
The [Customer] agrees to make an advance payment of [X]% of the total order value before the [Provider] will process the purchase order, with the balance due upon delivery.
Purchase order clause with automatic order renewal
This version automatically renews orders.
The [Customer] may elect for automatic renewal of any recurring purchase orders under this Agreement, with each renewal subject to the same terms as the original order, unless otherwise modified by both parties.
Purchase order clause with no minimum order value
This version allows no minimum order.
There shall be no minimum order value required for any purchase order under this Agreement, and the [Customer] may submit orders of any size, subject to the terms of this Agreement.
Purchase order clause with multi-item discount
This version includes discounts for multi-item purchases.
The [Customer] will receive a [X]% discount for each additional item purchased beyond the first [X] items under a single purchase order.
Purchase order clause with delivery acceptance criteria
This version sets delivery acceptance criteria.
The [Customer] will review all delivered items within [X] business days and provide written notice of acceptance or rejection based on non-conformance to the purchase order specifications.
Purchase order clause with invoicing upon shipment
This version triggers invoicing upon shipment.
The [Provider] will issue an invoice for each purchase order upon shipment of goods, with payment due within [X] days of receipt of the invoice.
Purchase order clause with partial order fulfillment
This version allows partial fulfillment of orders.
In the event that the full order cannot be fulfilled at once, the [Provider] may partially fulfill the purchase order, with the remaining items shipped within [X] business days.
Purchase order clause with cancellation due to non-payment
This version includes cancellation for non-payment.
If the [Customer] fails to make payment within [X] days of receiving the invoice for a purchase order, the [Provider] reserves the right to cancel the order and seek recovery for any outstanding balance.
Purchase order clause with shipping cost adjustments
This version allows for shipping cost adjustments.
The [Provider] reserves the right to adjust shipping charges in the event of significant changes in freight costs, with the [Customer] notified of any increase before finalizing the order.
Purchase order clause with credit terms for new customers
This version includes credit terms for new customers.
The [Customer] agrees to pay for the first [X] purchase orders on a cash-on-delivery basis. Upon successful completion of these orders, credit terms of [Y] days may be extended.
Purchase order clause with global shipping restrictions
This version includes global shipping restrictions.
The [Provider] will not ship any products under a purchase order to countries where shipment of such goods is restricted by applicable laws or regulations, and the [Customer] agrees to comply with these restrictions.
Purchase order clause with bulk purchase discounts
This version includes bulk discounts.
The [Customer] shall receive a [X]% discount on any purchase order where the total order value exceeds [Y] dollars or the quantity of items ordered exceeds [Z] units.
Purchase order clause with item returns due to defects
This version allows returns for defective items.
The [Customer] may return any items found to be defective within [X] days of delivery, with a full refund or replacement, at the [Provider]’s discretion.
Purchase order clause with no returns on sale items
This version excludes returns for sale items.
Items purchased under a sale or promotional offer are non-returnable and non-refundable, except in cases of product defects or shipping errors.
Purchase order clause with expedited shipping options
This version provides expedited shipping.
The [Customer] may request expedited shipping for any purchase order, subject to availability and additional fees, which will be calculated and added to the order total.
Purchase order clause with delivery tracking number
This version includes a tracking number.
The [Provider] will provide the [Customer] with a tracking number for each purchase order shipment, enabling the [Customer] to monitor the status of the delivery.
Purchase order clause with delivery within business hours
This version specifies business hours for delivery.
The [Provider] shall deliver products between [X] AM and [Y] PM, Monday through Friday, excluding holidays, and will confirm the delivery time with the [Customer] at least [Z] days in advance.
Purchase order clause with customer responsibility for customs fees
This version assigns responsibility for customs fees.
The [Customer] shall be responsible for any customs duties, taxes, or fees incurred during international shipments, and such costs will not be included in the purchase order total.
Purchase order clause with special packaging requests
This version allows special packaging requests.
The [Customer] may request special packaging for certain items, which will incur additional charges, as outlined in [Schedule X].
Purchase order clause with limited liability for delays
This version limits liability for delays.
The [Provider] shall not be liable for any damages caused by delays in delivery due to circumstances beyond its control, including but not limited to natural disasters, transportation delays, or strikes.
Purchase order clause with order confirmation requirement
This version requires order confirmation.
Upon receipt of a purchase order, the [Provider] must confirm the order in writing within [X] business days. If no confirmation is provided, the order will be deemed cancelled.
Purchase order clause with payment in installments
This version includes installment payments.
The [Customer] may elect to pay for any purchase order in [X] equal installments, with the first installment due upon order confirmation and the remainder due according to the schedule outlined in [Schedule Y].
Purchase order clause with order tracking system access
This version provides tracking system access.
The [Customer] will be granted access to the [Provider]’s order tracking system, allowing real-time tracking and updates for all active purchase orders.
Purchase order clause with item-specific delivery dates
This version sets specific delivery dates for items.
Each item within a purchase order may have a unique delivery date based on availability, with the [Provider] confirming the expected date for each item in the purchase order.
Purchase order clause with automatic shipment notification
This version includes shipment notifications.
The [Provider] shall send an automatic shipment notification to the [Customer] upon dispatch of each purchase order, including the tracking number and estimated delivery date.
Purchase order clause with no substitution without approval
This version prevents unauthorized substitutions.
The [Provider] agrees not to substitute any items listed in the purchase order with alternatives without the prior written approval of the [Customer].
Purchase order clause with exclusive supplier arrangement
This version includes an exclusive supplier arrangement.
The [Customer] agrees to source all products specified in the purchase order exclusively from the [Provider] for the duration of this Agreement, unless otherwise agreed upon.
Purchase order clause with agreed packaging and handling fees
This version includes packaging and handling fees.
The [Customer] shall be responsible for any additional packaging and handling fees, which will be included in the final total for the purchase order, as outlined in [Schedule Z].
Purchase order clause with minimum delivery volume
This version sets a minimum delivery volume.
The [Customer] agrees to meet a minimum purchase volume of [X] units per order, and any orders below this volume will incur additional charges as specified in [Schedule X].
Purchase order clause with return of excess inventory
This version allows returns of excess inventory.
The [Customer] may return any excess inventory within [X] business days of receiving the purchase order, provided the items are in their original packaging and unused.
Purchase order clause with extended delivery timelines for customized orders
This version includes extended timelines for custom orders.
Customized orders, including special configurations or personalized products, may require additional time for production and delivery, with the [Provider] providing the [Customer] with an estimated delivery timeline.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.