2 parties      Purchase order and delivery        Goods/products        Recurring payment        Risk and title        Claims

What is a Purchase agreement?

A Purchase Agreement, also known as a Sales Agreement or Sales Contract, is a legally binding document that outlines the terms and conditions of a purchase transaction between a buyer and a seller. It serves as evidence of the agreement reached between the parties regarding the sale of goods.

Tips

• Conduct Due Diligence: Conduct due diligence on potential suppliers to assess their capabilities, reliability, and track record. Consider factors such as production capacity, financial stability, quality control processes, and reputation in the industry.
• Address Title and Risk of Loss: Clearly define when title and risk of loss transfer from the seller to the buyer. Specify who is responsible for shipping, insurance, and any other costs associated with delivery.