Orders and Fulfillment

 
Orders and Fulfillment
 
PLACING THE ORDER

1. Use of order forms 

Unlike quotations and sales letters, correspondence concerning orders is largely routine. Sometimes there is no correspondence at all; instead, buyers use printed order forms and sellers use printed acknowledgments. Ordering on printed forms has a number of advantages:
the forms are pr-numbered and therefore easy to refer to; important details cannot easily be overlooked;
the general conditions under which orders are placed can be printed on the back. (A reference to these conditions must be made on the front, otherwise the seller will not be legally bound by them.)
Orders placed by telephone should be confirmed in writing to avoid misunderstanding. 


2. Orders placed by letter 

The essential qualities of an order-letter are accuracy and clarity.
Failure in either of these may lead to trouble that cannot later
be put right. When sending an order by letter:
(I) include full details of description, quantities and prices and quote catalog numbers, if any,
(ii) state your requirements as to delivery— place, date, mode of transport and whether to be sent carriage paid.’ or carriage forward?
(iii) confirm the terms of payment agreed in preliminary negotiations.

3. Legal position of the parties 

As stated in Chapter 5, a seller who has quoted is not legally bound to accept the buyer’s order, unless the quotation was made as a firm offer. According to English law the buyer’s order is an offer to buy and the arrangement is not legally binding until the seller has accepted the offer. After that, both parties arc legally bound to honor their agreement. 

(a) The buyer’s obligations
When a binding agreement comes into force, the buyer is required by law:
(i) to accept the goods supplied, provided they comply with the terms of the order,
(ii) to pay for them at the time of delivery, unless there is an agreement to the contrary,
(iii) to check the goods as soon as possible (failure to give prompt notice of faults to the seller will he taken as acceptance of the goods). 

(b) The seller’s obligations
The seller is required by law:
(1) to deliver goods exactly of the kind ordered, and at the agreed time;
(ii) to guarantee the goods to be free from faults of which the buyer could not be aware at the time of purchase.
If faulty goods arc delivered, the buyer can demand either a reduction in price, or replacement of the goods, or cancellation of the order. He may also be able to claim damages.
Routine orders for standard goods3 are short arid formal, but they must include essential details concerning the goods, delivery and terms of payment. Where the order covers two or more items they should be tabulated. This lessens the chance of items being overlooked.