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What Is A Po Agreement

A contract is a document that describes the products sold, sets the agreed prices and defines the terms of the purchase contract for a certain period of time. A lump sum order, also known as a framework purchase agreement or call order, is an order that a customer places with a supplier to allow multiple delivery dates over a period of time, which is usually negotiated to take advantage of predetermined prices. These are usually used when there is a recurring need for consumable goods. Lump sum orders are also legal documents once accepted by the supplier, but do not eliminate the need for a formal contract with the supplier. At first glance, orders and contracts look the same, so the distinction between one and the other can be complex.