In the case of a sales contract, it is customary to find a language stipulating that the order is enforceable as long as the contract complies with the order. There are no rules on when both types of documents should be used. The use of an order or sales contract depends on the type of purchase or the usual industry practice. For example, real estate transactions are made with a sales contract and not with an order. If it is a government contract, the rules or guidelines may dictate to the government agency what type of document to use. So what is the point of the sales order? What is their practical purpose? An order (PO) is a commercial document that the buyer delivers to a seller and indicates the types, quantities and prices agreed for the products or services that the seller makes available to the buyer. Sending an order to a supplier is a legal offer for the purchase of products or services. The acceptance of a po by a seller is usually a single contract between the buyer and the seller, so there is no contract until the order is accepted. A sales contract requires each party to sign the contract, while an enforceable order requires only a buyer`s signature and some form of acceptance by the supplier.
When accepting an order, a sales contract and an order are enforceable contracts and there is no longer any difference between the two.