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Why is it necessary to have a written "Order Acknowledgement" of Purchase Order from a supplier or contractor?

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Question added by Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd
Date Posted: 2017/02/21
Omar Saad Ibrahem Alhamadani
by Omar Saad Ibrahem Alhamadani , Snr. HR & Finance Officer , Sarri Zawetta Company

Thanks 

Purchase order should be written and documented ( Hard and Soft ) for :

  • Reference when needed.
  • To be an argument in the litigation and the courts.
  • To protect yourself as an administrative or responsible for procurement.
  • To be an historical reference if you want to buy from a new supplier.

Regards

Krishna   KHASANIS  PMP
by Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Written " P O Acknowledgment " is treated as a formal document which is part of highly legal contract agreement which is enforceable & supportable in case of arbitration , mediation or litigation. 

I agree with omar. It is beneficial not only for administrative records but also to protect yourself against disputes.

Syed Zeeshan Faheem
by Syed Zeeshan Faheem , Supply Chain Director , VAMED/Reem Hospital

To avoid any misunderstanding and delivery issues, it is always recommended to receive written order confirmation. 

Thanks for the invitation. I agree with the given answers.

Mark Guillermo
by Mark Guillermo , Project Management - Electrical Engineer II , SRACO Company

For contractual agreement. To provide a product within agreed cost, quantity and specifications.

Nadeem Asghar
by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

The basic objective of a written acknowledgment of a purchase order from supplier is to prove existence of a legally binding contract between the two parties.However, legally speaking , written acknowledgement of a purchase order is not necessary as long as one can otherwise prove the existence of a contract. This may be through actions of the supplier/contractor, any evidence verbal or circumstantial etc etc. However, a clear cut and unambiguous Purchase Order Acknowledgement is the best tool to prove existence of contract.

Mohd Anis Qureshi
by Mohd Anis Qureshi , Accountant , Mansuri and Parikh

To avoid any misunderstanding and delivery issues,for refrence, for legal content,

Cliff James
by Cliff James , Electrical Foreman , Laird Electric

The written acknowledgement acts a legally binding document, and helps to avoid any misunderstandings. 

Moustafa Abouelsaad
by Moustafa Abouelsaad , Procurement & Logistics Director , Al-Kharafi Group

Thank you for your invitation,

 

Of course it is necessary to have a written "Order Acknowledgement" of Purchase Order from a supplier or contractor in order to be legally binding contract and to create a formal Contract between both parties and to 

Syed Tahseen Kazmi Kazmi
by Syed Tahseen Kazmi Kazmi , Logistics & Supply Chain Manager , 786.Com Enterprises

Written Order becomes a legal binding document with subject to certain terms and conditions mutually agreed upon.

 

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