Order form: Overview, definition and example
What is an order form?
An order form is a document used in business contracts to specify the exact products, services, quantities, prices, and terms of an order. It acts as a detailed record of what a customer is purchasing and often becomes part of the contract between the buyer and seller.
For example, when a company buys software licenses, the order form might list the number of licenses, the price per license, and the subscription duration.
Why is an order form important?
Order forms are important because they ensure clarity and prevent misunderstandings. They spell out exactly what is being bought, the price, and any special terms, leaving no room for guesswork.
For businesses, an order form simplifies the buying process, helps track purchases, and reduces disputes by documenting all key details of a transaction.
Understanding an order form through an example
Imagine a company signs a master services agreement with a cloud storage provider. The agreement includes an order form where the company specifies it needs 1 TB of storage space, access for 50 users, and a subscription term of one year. The order form becomes part of the contract, ensuring both parties know what’s included and at what cost.
In another case, a retailer orders products from a supplier. The order form details the item types, quantities, and delivery dates, as well as any special terms, like requiring eco-friendly packaging. If the supplier delivers the wrong items, the retailer can refer to the order form to resolve the issue.
An example of an order form clause
Here’s how a reference to an order form might appear in a contract:
“All purchases made under this Agreement shall be documented in an Order Form, which shall specify the products or services ordered, applicable fees, quantities, and delivery terms. Each Order Form shall be incorporated into and governed by this Agreement.”
Conclusion
An order form is a practical tool for detailing the specifics of a purchase, ensuring both parties understand the terms and scope of an order. It provides a clear, documented agreement that simplifies transactions and reduces the risk of disputes.
By using an order form, businesses can manage orders effectively, streamline communication, and ensure accuracy in their contracts. It’s about making transactions straightforward and transparent.
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.