The Research Paper should address the topic below and flow according to the outline below: Topic: Purchase Agreements between Businesses Thesis Statement: In the everyday life of the business world,...

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Purchase Agreements between Businesses
Table of Contents
3Introduction
3Purchase agreement
4Importance of Purchase agreement
5Quality of a good Purchase agreement
6Elements of a well written purchase agreement
6Offe
6Acceptance
7Enforceable obligation
8Substantial and inferior performance
8Breach of agreement
9Termination
10Ethical consideration
10Findings
11Recommendation
12Conclusion
13Bibliography
Introduction
Purchasing function of is gaining huge importance now days in organizations because of its direct relation with production cost of the company. This research paper focuses on analyzing the importance of purchasing agreement in the market. On day to day basis customers are buying products from the companies and getting involved in to a common contract. Companies also buy products from their suppliers and sign purchase contract for the same. Main objective of this paper is to analyze and understand the importance of purchase agreement for the business.
This paper aims at understanding the legal concept related to purchase agreement, it includes information about various elements of a purchase agreement, offer, acceptance,
each of contract, performance of the contract, termination of contract, importance of a purchase agreement. Finally, it includes major findings and recommendations for the reader. This report will be of great help for different organizations and suppliers in understanding the role of purchase agreement in the success of business.
Purchase agreement
Purchasing is an act of buying goods or service from someone; it is a type of transaction between two or more parties. Purchase can be of two types, it can be business to business purchase (wisegeek.com, 2012); for example, purchase of raw material from the supplier. Another type of purchase is business to consumers that is purchase of final products and services. In the first case, the purchase agreement is between supplier and the company; whereas, in the second case it is between the customer and the company.
Purchase agreement is contract signed between two parties that is the vendor and the purchaser for the purchase and sell of the goods and services. It creates a legal binding for the both the parties to ensure that they fulfil the promise made (Perkins & Gunasekaran, 1998). A purchase agreement is a legal document prepared and signed by both seller and purchaser. It includes all the terms and conditions of the sales and purchase made, it also include the specification of the product purchaser and all other deadline. In case of any discrepancy during the order execution, this document can be used as a reference. This document helps in creating obligation for both purchaser and the seller.
Importance of Purchase agreement
Purchase agreement can be treated as the most vital document during the transaction, so it is equally important that it is well written in a comprehensive manner. It is a legal document that includes different information such as products sold, its price, its possession, quality, terms of sales and other conditions. It is suggested that both the parties should read and understand the purchase agreement before signing. This document helps in several manners, which have been discussed below;
· As the firm size grows, maintain records become complex, purchase agreement helps in maintaining easy records (Carper & McKinsey, 2011).
· It helps in providing a legal support to both the parties, in case of any illegal activity or other discrepancy, any of the party can go to court and resolve the matter.
· All the terms and condition mentioned in the purchase agreement are approved by the head of the department.
· It acts as an obligatory document for both purchaser and seller and they cannot withdraw from their position later on.
· In case of difference, if mediator is required then purchase agreement helps in settling the situation.
Quality of a good Purchase agreement
A purchase agreement should be clearly written in the language understood by both the parties and aimed at protecting the interest and position of all the parties involved in the purchase agreement. A good purchase agreement must include the information about the goods and services sold, which include information about the quality of the product, its shape, size, features and quantity. Another important point is the conditions to purchase and sale; it must include information about the guarantees, wa
anty and indemnities clause. It should mention clearly a fair discourser about the position of seller and purchaser. It should also include information and clauses about the
each of wa
anty or any other clause decided.
A well written purchase agreement must include information on the consideration of the transaction, their business terms and condition about the completion. Different ways to get access to management should be provided in the agreement. It should also include information about the pre completion covenants. Clear legal consideration should be mention about the jurisdiction that will be involved during any differences. All the above mentioned factors are discussed in detail in the following section of the report, which will help the reader in understanding clearly about the purchase agreement.
Elements of a well written purchase agreement
Offer
Offer is the first stage of the agreement, it is expressed willingness from any of the party to start the transaction, and it is an express contract. It is the intention of the offeror to start the...