purchase order
Definition
A purchase order is an official document you send to a supplier that says exactly what you want to buy, how much of it you need, and what price you agreed to pay. Once the supplier accepts it, that document becomes a legally binding contract between your two businesses. It protects both sides by creating a written record of what was promised before any money or goods change hands.
Example
You email a furniture supplier asking for 20 office chairs at $150 each, and instead of just exchanging casual messages, you send a formal purchase order with those exact details along with your delivery deadline.
Watch Out
If a supplier ships you something different from what your purchase order specified, you have much stronger legal ground to reject the goods or demand a refund because the written document proves what you actually agreed to.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.