Purchase Order

A Purchase Order (PO) is a formal written document issued by an importer or buyer to an exporter or seller, specifying the terms and conditions for ordering goods, including product name, specifications, quantity, unit price, total price, delivery date, payment method, packaging requirements, and shipping method. It serves as both the buyer's offer to purchase and the basis for the seller to arrange production, stock preparation, and shipment. Usage scenario: The buyer issues a PO after confirming purchase intent, and the contract is formed once the seller countersigns. Precautions: Once accepted by the seller, a PO is legally binding, so terms must be accurate and complete; if there is a conflict with a Proforma Invoice, the PO usually prevails; any changes require written consent from both parties. Difference from a Sales Contract: A PO is a unilateral order document issued by the buyer, while a Sales Contract is a formal agreement signed by both parties with stronger legal effect. Difference from an Order Confirmation: The latter is the seller's confirmation of acceptance of the PO. Foreign trade practitioners should carefully review PO terms to avoid disputes caused by ambiguous specifications, delivery dates, or payment conditions.