7.2 Contracts with vendors
When vendors have been selected, all purchases must be confirmed by issuing a purchase order. The purchase order forms the contract to purchase goods.
In some cases, a separate agreement or contract is made to supplement the purchase order. This is usually the case for transportation of commodities or the purchase of a food commodity locally, where some additional clauses need to be incorporated within the agreement and which cannot be accommodated within the body of the printed purchase order. A purchase order should be prepared, and reference an attached detailed agreement or contract.
The purchase order must include some standard clauses, and terms and conditions, covering:
- liability issues
- responsibility for replacement of all losses and damages
penalty for delayed deliveries