Designated purchaser clause: Copy, customize, and use instantly
Introduction
A designated purchaser clause specifies a party or entity authorized to make purchases under the agreement on behalf of one of the contracting parties. It provides clarity on purchasing authority and prevents disputes over unauthorized transactions. This clause is particularly important in agreements involving multiple stakeholders or subsidiaries.
Below are designated purchaser clause templates tailored to various scenarios. Copy the one you need, customize it, and add it to your contract.
Standard designated purchaser clause
This clause assigns purchasing authority to a named entity or individual.
[Party A] designates [insert entity or individual name] as its authorized purchaser under this agreement. All purchase orders and related transactions must be issued and signed by the designated purchaser to be valid.
Subsidiary purchaser clause
This clause authorizes a subsidiary of the contracting party to make purchases.
[Party A] designates its subsidiary, [Subsidiary Name], as the authorized purchaser for all transactions under this agreement. The subsidiary may issue purchase orders and execute necessary documentation within the scope of this agreement.
Multiple designated purchasers clause
This clause permits multiple individuals or entities to act as purchasers.
[Party A] designates the following individuals/entities as authorized purchasers under this agreement: [Name 1], [Name 2], and [Name 3]. Each designated purchaser may issue purchase orders independently, provided they comply with the terms of this agreement.
Conditional purchaser clause
This clause limits purchasing authority to specific conditions or requirements.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement, provided that any purchase exceeding [insert threshold amount] requires prior written approval from [Party A].
Geographic-specific purchaser clause
This clause assigns purchasing authority based on geographic regions.
[Party A] designates [Name/Entity] as the authorized purchaser for transactions within [specific geographic region]. Purchases outside this region require explicit written approval from [Party A].
Designated purchaser with notification clause
This clause requires the designated purchaser to notify the contracting party of purchases made.
[Party A] designates [insert entity or individual name] as its authorized purchaser under this agreement. The designated purchaser must notify [Party A] within [insert time period] of any purchase exceeding [insert threshold amount].
Exclusive designated purchaser clause
This clause restricts purchasing authority to a single designated entity.
[Party A] designates [insert entity or individual name] as the exclusive purchaser under this agreement. No other individual or entity may make purchases or enter into transactions under this agreement.
Temporary designated purchaser clause
This clause grants purchasing authority for a specific time period.
[Party A] designates [insert entity or individual name] as its authorized purchaser under this agreement for a period of [insert time frame]. Upon expiration of this period, all purchasing authority reverts to [Party A].
Designated purchaser with auditing clause
This clause includes provisions for auditing transactions made by the designated purchaser.
[Party A] designates [insert entity or individual name] as its authorized purchaser under this agreement. All transactions made by the designated purchaser are subject to review and audit by [Party A] on a quarterly basis.
Emergency designated purchaser clause
This clause allows temporary purchasing authority in emergencies.
In the event of an emergency, [Party A] designates [insert entity or individual name] as an authorized purchaser under this agreement. This authority is valid for the duration of the emergency and must be documented in writing within [insert time period] after the emergency is resolved.
Standard purchaser appointment clause
This clause assigns purchasing authority to a specific individual or team.
[Party A] appoints [insert entity or individual name] as the authorized purchaser under this agreement. All orders and requests must be submitted through this designated purchaser to be valid and enforceable.
Purchaser scope limitation clause
This clause restricts the purchasing authority to certain types of transactions.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority limited to the procurement of [specific goods/services]. Purchases outside this scope require prior written consent from [Party A].
Rotational purchaser clause
This clause assigns purchasing authority to rotate among specific individuals or entities.
[Party A] authorizes [insert entity/individual name] to act as the designated purchaser under this agreement for [time period]. Upon expiration of this period, purchasing authority will transfer to [alternate purchaser], as specified by [Party A].
Pre-approved purchaser clause
This clause requires prior approval for appointing a designated purchaser.
[Party A] reserves the right to approve [insert entity or individual name] as the designated purchaser under this agreement. All designations must be confirmed in writing and are subject to periodic review.
Purchaser reporting clause
This clause mandates regular reporting of purchases.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement. The designated purchaser must provide a detailed purchase report to [Party A] every [insert time period], listing all transactions and their corresponding amounts.
Regional purchaser network clause
This clause establishes a network of purchasers for different regions.
[Party A] establishes a network of designated purchasers for specific regions: [Region 1 – Purchaser Name], [Region 2 – Purchaser Name], etc. Each purchaser is authorized to handle transactions exclusively within their assigned region.
Dual authorization purchaser clause
This clause requires joint approval for certain transactions.
[Party A] designates [insert entity or individual name] as the primary purchaser under this agreement. For purchases exceeding [insert threshold amount], co-authorization from [secondary entity/individual name] is required.
Revocable purchaser designation clause
This clause allows revocation of purchasing authority at any time.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement. This designation may be revoked at [Party A]’s sole discretion with [insert notice period] written notice.
Purchaser liability clause
This clause addresses the liability of the designated purchaser.
[Party A] designates [insert entity or individual name] as the authorized purchaser. The designated purchaser assumes responsibility for ensuring compliance with the terms of this agreement and is liable for any unauthorized transactions.
Cross-entity purchaser clause
This clause extends purchasing authority to related entities.
[Party A] designates [insert entity or individual name], including its affiliated entities, as the authorized purchaser under this agreement. Purchases made by affiliates must adhere to the same terms and conditions as those made by [Party A].
Delegated purchasing authority clause
This clause allows the designated purchaser to delegate authority to others under specified conditions.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement. The designated purchaser may delegate purchasing authority to others only with prior written approval from [Party A].
Emergency purchasing clause
This clause grants authority to a designated purchaser for urgent scenarios.
[Party A] designates [insert entity or individual name] as the emergency purchaser under this agreement, authorized to make purchases without prior approval in situations deemed urgent, provided notice is given to [Party A] within [insert timeframe].
Tiered purchasing limits clause
This clause sets purchasing thresholds based on tiers.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority capped at [insert amount] for standard purchases and [insert amount] for exceptional purchases, subject to [Party A]’s review.
Purchaser substitution clause
This clause provides for a backup purchaser if the primary is unavailable.
[Party A] designates [insert entity or individual name] as the primary purchaser. In their absence, [insert secondary entity or individual name] will assume purchasing authority temporarily, with the same responsibilities and limitations.
Purchaser dispute resolution clause
This clause addresses conflicts involving the designated purchaser.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement. Any disputes related to the actions of the purchaser must be resolved through the internal dispute resolution process outlined by [Party A].
Purchaser confidentiality clause
This clause ensures sensitive information remains secure.
[Party A] designates [insert entity or individual name] as the authorized purchaser. The designated purchaser must maintain the confidentiality of all sensitive information obtained during the purchasing process and may not disclose it without prior written consent.
Expiry of purchaser authority clause
This clause sets a termination date for the purchaser’s authority.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement, with purchasing authority to expire on [insert date], unless extended by mutual written agreement.
Multi-tiered purchaser approval clause
This clause requires approval at multiple levels for significant purchases.
[Party A] designates [insert entity or individual name] as the primary purchaser. For purchases exceeding [insert threshold amount], additional approval from [secondary entity or individual name] and [Party A] is required.
Purchaser compliance obligation clause
This clause requires the purchaser to adhere to compliance policies.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement. The designated purchaser must ensure all transactions comply with [Party A]’s internal policies and applicable laws.
Purchaser audit clause
This clause mandates periodic audits of the purchaser’s actions.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement. The designated purchaser’s activities will be subject to periodic audits by [Party A] to ensure compliance with the terms of this agreement.
Purchaser authority verification clause
This clause requires verification of the purchaser's authority before executing significant transactions.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement. For transactions exceeding [insert threshold], the designated purchaser must verify their authority through written confirmation from [Party A].
Joint purchasing authority clause
This clause allows for shared responsibility between multiple purchasers.
[Party A] designates [insert entity or individual name] and [insert additional entity or individual name] as joint purchasers. Both parties must agree and co-sign on any purchases exceeding [insert threshold] to ensure accountability.
Conditional purchaser authority clause
This clause limits the purchaser’s authority based on specific conditions.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority restricted to purchases related to [specific project or purpose]. All other transactions require prior approval from [Party A].
Purchaser reporting obligation clause
This clause requires regular reporting from the designated purchaser.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement. The purchaser must submit a detailed report of all transactions to [Party A] on a [weekly/monthly] basis.
Purchaser training requirement clause
This clause mandates training for the designated purchaser.
[Party A] designates [insert entity or individual name] as the authorized purchaser, contingent upon the completion of training on [specific purchasing procedures or compliance guidelines] provided by [Party A].
Temporary purchaser clause
This clause provides for temporary designation in specific situations.
[Party A] designates [insert entity or individual name] as the temporary authorized purchaser under this agreement, with authority valid only during [specific period or event], after which it will revert to [insert primary entity or individual name].
Prohibited purchases clause
This clause restricts the designated purchaser from engaging in certain transactions.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement. The purchaser is expressly prohibited from making purchases related to [specific items or services], unless explicitly authorized by [Party A].
Purchaser indemnification clause
This clause ensures the purchaser is protected against certain liabilities.
[Party A] designates [insert entity or individual name] as the authorized purchaser. [Party A] agrees to indemnify and hold the purchaser harmless against claims arising from transactions conducted in good faith under this agreement.
Multi-region purchasing clause
This clause permits purchasing authority across multiple regions.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority to conduct transactions in [list regions]. Regional-specific compliance requirements must be adhered to for all transactions.
Purchaser escalation clause
This clause provides a process for escalating disputes or exceptions.
[Party A] designates [insert entity or individual name] as the authorized purchaser. In cases of disputes or exceptions, the purchaser must escalate the matter to [Party A’s legal or compliance team] for resolution before proceeding.
Purchaser approval amendment clause
This clause allows modification of purchasing authority upon mutual agreement.
[Party A] designates [insert entity or individual name] as the authorized purchaser. The scope of the purchaser’s authority may be amended at any time upon mutual written agreement between the parties.
Delegated authority expiration clause
This clause ensures the delegated authority automatically expires after a defined period.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement, with authority automatically expiring on [insert date] unless explicitly extended in writing.
Delegated purchasing oversight clause
This clause includes a monitoring mechanism for designated purchasers.
[Party A] designates [insert entity or individual name] as the authorized purchaser. All transactions conducted by the purchaser are subject to review and oversight by [Party A’s finance or procurement department] to ensure compliance with this agreement.
Restricted budget authority clause
This clause limits the purchaser’s authority to a predefined budget.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority restricted to a maximum budget of [insert amount] for transactions under this agreement. Any purchases exceeding this limit require prior written approval.
Multi-tiered purchasing clause
This clause allows for hierarchical levels of purchasing authority.
[Party A] designates [insert primary entity or individual name] as the lead purchaser and [insert secondary entity or individual name] as the backup purchaser. The backup purchaser may only exercise authority in the absence or unavailability of the lead purchaser.
Emergency purchase authority clause
This clause permits emergency purchases without prior approval.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority to make emergency purchases up to [insert amount] without prior approval. Such transactions must be reported to [Party A] within [insert timeframe].
Purchaser compliance audit clause
This clause mandates regular audits of the purchaser’s activities.
[Party A] designates [insert entity or individual name] as the authorized purchaser under this agreement. The purchaser’s transactions will be subject to periodic compliance audits by [Party A’s audit team] to ensure adherence to the agreement’s terms.
Vendor-specific purchasing clause
This clause restricts the purchaser to specific vendors.
[Party A] designates [insert entity or individual name] as the authorized purchaser, limited to conducting transactions with vendors approved by [Party A]. Unauthorized vendor transactions require prior written consent.
Purchaser liability cap clause
This clause limits the purchaser’s liability for transactions.
[Party A] designates [insert entity or individual name] as the authorized purchaser. The purchaser’s liability for errors or omissions in transactions is capped at [insert amount], provided actions were taken in good faith under this agreement.
Delegated authority retraction clause
This clause outlines conditions for withdrawing purchasing authority.
[Party A] reserves the right to revoke the purchasing authority of [insert entity or individual name] at any time upon written notice, particularly in cases of non-compliance with this agreement.
Cross-departmental purchasing clause
This clause allows for purchases across multiple departments.
[Party A] designates [insert entity or individual name] as the authorized purchaser with authority to conduct transactions across all departments. Department heads must be notified for purchases exceeding [insert amount].
Conditional vendor list clause
This clause ties purchasing authority to an approved vendor list.
[Party A] designates [insert entity or individual name] as the authorized purchaser. Transactions are limited to vendors listed on [Party A’s approved vendor list], unless written exceptions are provided.
Temporary purchasing delegation clause
This clause allows for short-term delegation in specific circumstances.
[Party A] designates [insert entity or individual name] as the temporary authorized purchaser during [specific event or timeframe]. This authority will automatically revert to [Party A] upon the conclusion of the specified period.
Purchaser training completion clause
This clause ties authority to the completion of mandatory training.
[Party A] designates [insert entity or individual name] as the authorized purchaser, contingent upon the completion of training on [insert relevant subject] provided by [Party A or an external trainer].
Tiered approval purchasing clause
This clause requires escalating approvals for higher-value purchases.
[Party A] designates [insert entity or individual name] as the authorized purchaser. Transactions above [insert threshold amount] require written approval from [Party A’s designated authority] before execution.
Joint purchasing authority clause
This clause assigns purchasing authority to multiple parties acting jointly.
[Party A] designates [insert entity names] as joint authorized purchasers. Transactions under this agreement require the mutual consent and signatures of all designated purchasers to ensure compliance.
Discretionary purchasing clause
This clause grants the purchaser discretion within specific parameters.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with discretion to conduct transactions within the scope of [specific goods or services] and a budget limit of [insert amount].
Revocable purchasing delegation clause
This clause allows for immediate revocation of purchasing authority under specific conditions.
[Party A] designates [insert entity or individual name] as the authorized purchaser. This authority is subject to revocation at [Party A’s] sole discretion if any breach of agreement terms or misuse of authority is identified.
Annual review purchasing clause
This clause ties purchasing authority to an annual review process.
[Party A] designates [insert entity or individual name] as the authorized purchaser. The authority granted under this clause will be subject to annual review and renewal by [Party A] based on compliance performance.
Specialized goods purchasing clause
This clause limits authority to specific types of goods or services.
[Party A] designates [insert entity or individual name] as the authorized purchaser for transactions involving [specific goods or services]. Authority does not extend to any other goods or services unless expressly approved in writing.
Delegation by necessity clause
This clause allows delegation only in urgent or critical circumstances.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority limited to transactions deemed urgent or necessary to maintain operations under this agreement.
Technology-based transaction clause
This clause grants authority for technology-related purchases only.
[Party A] designates [insert entity or individual name] as the authorized purchaser, limited to transactions involving technology, software, or IT services, as outlined in [specific section or annex of the agreement].
Temporary alternate purchaser clause
This clause specifies an alternate purchaser for a defined period.
[Party A] designates [insert entity or individual name] as the temporary authorized purchaser during the absence of [primary purchaser]. This authority expires upon the return of the primary purchaser or at the end of [specific timeframe].
Pre-approved budget clause
This clause links purchasing authority to a pre-approved budget.
[Party A] designates [insert entity or individual name] as the authorized purchaser, limited to expenditures within the pre-approved budget of [insert amount] for the duration of this agreement.
Approval-by-category clause
This clause restricts purchasing authority to specific product categories.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority confined to transactions involving [specific category of goods or services]. Transactions outside this category require prior written approval.
Purchaser notification requirement clause
This clause requires the purchaser to notify stakeholders of all transactions.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with the obligation to notify [relevant stakeholders] of all transactions conducted under this agreement within [insert timeframe].
Emergency override clause
This clause grants authority to override standard processes in emergencies.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority to bypass standard purchasing processes during emergencies, provided written justification is submitted within [insert timeframe] following the transaction.
Conditional purchase approval clause
This clause ties authority to fulfillment of specific conditions.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority contingent upon meeting the conditions outlined in [specific section of the agreement].
Value-based purchasing authority clause
This clause ties authority to transactions under a specific value threshold.
[Party A] designates [insert entity or individual name] as the authorized purchaser, limited to transactions with a total value not exceeding [insert amount] per transaction.
Conditional delegation clause
This clause grants authority only after specified conditions are met.
[Party A] designates [insert entity or individual name] as the authorized purchaser, provided that the conditions outlined in [specific section or annex] are fully satisfied before any transaction is executed.
Reimbursement-only authority clause
This clause limits authority to purchases eligible for reimbursement.
[Party A] designates [insert entity or individual name] as the authorized purchaser for expenses eligible for reimbursement under the terms of this agreement, with authority confined to transactions explicitly pre-approved by [Party A].
Tiered escalation clause
This clause requires escalation for approval based on transaction type or complexity.
[Party A] designates [insert entity or individual name] as the authorized purchaser. Transactions involving [specific category or type of transaction] must be escalated to [higher authority] for final approval.
Quarterly review clause
This clause mandates regular evaluation of the purchaser's performance.
[Party A] designates [insert entity or individual name] as the authorized purchaser, subject to quarterly reviews of performance and adherence to the terms of this agreement.
Non-renewable authority clause
This clause restricts authority to a single, non-renewable term.
[Party A] designates [insert entity or individual name] as the authorized purchaser for a term ending on [insert date], after which this authority will automatically terminate without renewal unless expressly extended in writing.
Transaction-specific authority clause
This clause limits authority to a single specified transaction.
[Party A] designates [insert entity or individual name] as the authorized purchaser for the specific transaction described in [specific section or annex]. Authority does not extend to any other transactions under this agreement.
Collaborative purchasing clause
This clause establishes shared authority for multiple parties.
[Party A] designates [insert entity names] as joint authorized purchasers. All purchasing decisions must be agreed upon unanimously by the designated parties before execution.
Independent verification clause
This clause requires verification of purchases by a third party.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with all transactions subject to independent verification by [third-party auditor] to ensure compliance with this agreement.
Sustainability-focused purchasing clause
This clause ties authority to sustainability-focused decisions.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority limited to transactions that comply with the sustainability criteria outlined in [specific section or annex].
Cross-border purchasing clause
This clause designates authority for international purchases only.
[Party A] designates [insert entity or individual name] as the authorized purchaser for transactions involving cross-border goods or services, subject to compliance with applicable import/export laws.
Operational necessity clause
This clause links authority to operational needs.
[Party A] designates [insert entity or individual name] as the authorized purchaser for transactions deemed operationally necessary to fulfill the objectives of this agreement, as determined by [Party A].
Compliance-bound authority clause
This clause conditions authority on adherence to specific compliance standards.
[Party A] designates [insert entity or individual name] as the authorized purchaser, with authority contingent on adherence to the compliance standards outlined in [specific section or annex].
Alternating purchaser clause
This clause allows alternating authority between designated purchasers.
[Party A] designates [insert entity names] as alternating authorized purchasers, with each purchaser responsible for transactions in alternating fiscal quarters unless otherwise agreed in writing.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.