TIP OF THE MONTH FOR JANUARY 2007!

'Terms and Conditions of Sale' versus 'Terms and Conditions of Purchase'  

Whilst in the midst of the procurement cycle, many firms are under the impression that the purchase of goods or services are conditional to the Seller's 'Terms and Conditions of Sale'. Of course, whom could blame the Seller for wanting to bind you into limited liability, limited warranty, no liability for consequential damages etc. on their part.

Agreement to such documents developed by the Seller's legal counsel has become the norm for firms not employing Purchasing personnel to procure their equipment. Too many times I have the heard the comment, 'Oh, I thought we had to agree to the terms and conditions of sale. We always have in the past'. 

Please consider these points during your next major purchase negotiation:

• Do you really understand the terms and conditions what you are agreeing to, and the consequence of doing so? Is the Seller accepting reasonable liability with regards to their product?
• Are the 'terms and conditions of sale' developed to only protect the Seller? What is your legal recourse for incurred damages in case of equipment failure?

Before issuing your next Request for Quotation (RFQ) package, ensure that you have developed and included detailed 'Terms and Conditions of Purchase' as opposed to the Seller's 'Conditions of Sale' as starting documentation in the purchasing negotiation process. 

For any assistance on the aforementioned, or in the development of 'Terms and Conditions of Purchase' pertinent to your business please contact us.