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In some instances, an invoice, purchase order, or an order acknowledgement can be declared a formal
sales contract.
· Purchase orders are written by a buyer and sent to a seller. They will state the amount and type of
goods that are being purchased, the cost, and other information pertinent to the sale.
· An invoice is written by the seller and sent to the buyer in response to the purchase order or other
forms of transaction.
· An order acknowledgement helps establish the position of the seller in the event of a dispute. It is
created by a seller in response to getting a purchase order. It will clarify additional details of the sale,
including scheduling the delivery if necessary. If an order acknowledgement is also signed by a buyer, it
then becomes a sales contract.