All purchases made as a business need to have a paper (or digital) trail. It helps with record keeping, inventory, taxation, compliance, and disputes with the supplier, among other things. Following the proper purchase management contracts process ensures the business will not have to bear the liability arising out of faulty, inferior or delayed supplies.
Would you like to know more about the laws surrounding business purchases? Our business lawyers can help. Contact a business law attorney near you today for more information.
Listed below are the legal aspects of business purchases:
Purchasing contracts begin with an RFP, followed by a bidding process that has to be transparent. Quotations have to be accepted from at least three different suppliers and samples checked. If possible, the buyer or a purchasing manager then has to visit all the shortlisted suppliers on-site to ensure their capacity to fulfill the order. A purchasing contract has to be entered into with the winning bidder.
Disputes may still arise due to breach of contract before delivery, such as delays or faulty supplies being delivered that are not made to specifications. A breach of warranty afterwards may result in a liability lawsuit that includes both the buyer and supplier as defendants. It will be more favorable for the buyer if the supplier has the required insurance. Many buyers require vendors to have supplier insurance so that the vendor can absorb losses if anything goes wrong with the transaction or there are problems with the supplied product.
Do you have legal questions regarding busines purchases? Our business law attorneys can help. Contact a business lawyer in your area today to learn more about how you can receive legal representation regarding business purchases.
Did you know?
Importers can get importer liability insurance.
Since the supplier in this case is a foreign company, it may hard to transfer the liability to the supplier. Importer liability insurance removes the risk of liability lawsuits for the importer.