Purchasing terms are core to every purchase from a vendor by a company. When a company requires the services of one or more vendor there are always a set of purchasing terms agreed between them. Usually these are set out in writing and the vendor tries to impose their terms and conditions – also known as T & C’s – on the purchaser.
Larger purchasers are able to insist on their own purchasing terms. At the very least, these terms will consist of:
When more detailed purchasing terms are required, they will also include one or more of the following:
Purchasing terms are often the form of a contract between the purchaser and the vendor and are often negotiated at the start of the business relationship. It is very common for a large purchaser to express their purchasing terms in the form of a Master Agreement that they use for all of their vendors.
Conversely, a large vendor that deals with numerous smaller purchasers will ensure that their purchasing terms are followed by the procuring companies, so the power of the company always seems to prevail.