Purchase Orders & Invoicing

25/06/2017

A Purchase Order is a document between a supplier and a buyer that confirms a purchase. It details the items the buyer agrees to purchase at a certain price. It also outlines the delivery date and terms of payment for the buyer. Purchase Orders make the purchasing process more efficient and allow for better inventory and payment tracking.

An Invoice is a document issued by a seller to a buyer. It identifies the seller and the buyer, the items sold, the quantities, the prices, any discounts, and delivery and payment terms. An Invoice also serves as a demand for payment and hence helps a healthy cash flow.

Claim your free trial. Start drafting legal documents with Zegal today.

Read More

Related Documents

Sell Goods & Services

20/06/2017

There is a wide range of contracts that need to be used in the course of doing business, often dependent on the nature of your business and the country in which you are operating.

Before starting any commercial negotiations, it is a good practice to enter into a Confidentiality Agreement, also know as a Non-Disclosure Agreement (NDA), with businesses to whom you may be disclosing sensitive information. It gives you the ability to take legal action if the other party discloses the information to a third party without your consent.

After a preliminary meeting or discussion and before you enter into a commercial relationship, you can use a Letter of Intent (Memorandum of Understanding) to set out the key terms of the future agreement and the next steps. When working closely with another company, you might need a Collaboration Agreement. When you are selling goods, use a Sale of Goods Agreement, and if a service is being provided, use a Supply of Services Agreement. When you are supplying goods to be distributed, or distributing goods for another business, you need a Distribution Agreement, which regulates how much will be paid, when delivery will take place, and when the distributor will take responsibility for the goods.

A Letter of Intent (Memorandum of Understanding) can help to set out the key terms of a potential agreement. A Letter of Intent (Memorandum of Understanding) typically includes details of the proposed agreement, pre-conditions, key obligations, intended signing date, and next steps. This document is not legally binding but it can contain certain legally binding clauses such as confidentiality to protect sensitive information.

A Collaboration Agreement is a binding document that sets the rules for the cooperation between your company and another. This is common when two companies must work together to complete a project, and it establishes how the companies will work together, who will do what, and how the relationship will end.

A legal agreement for the sale of goods or supply of services helps to make your customers aware of their rights and obligations from the moment you start doing business with them. If you are selling goods, you will need a Sale of Goods Agreement. It typically covers the description of what is to be bought, the price, and practical details such as delivery time and returns. Use a Supply of Services Agreement when one business provides services to another. This agreement describes the scope of services provided as well as the service levels, the fees to be paid, and how to terminate the agreement. Working together with a distributor might be a good way to expand your business. A Distribution Agreement can be used to set out terms and conditions of a distribution arrangement. Whether you are the party supplying or distributing the goods or products, it is important that you specify the terms of your cooperation from the start so you can avoid misunderstandings during the course of your relationship.

Start managing your legal needs with Zegal today.

Related Documents

The Six Stages

Starting a new business is an exciting prospect. Working for yourself, turning your ideas into reality, and making your own money has motivated many to take the entrepreneurial route and set out on their own. In the excitement of launching a business, obvious legal issues can often be overlooked that later derail an otherwise well-thought-out business plan.

Putting in place basic legal documents protects the interests of your business, as they help to set out clear rights and responsibilities. Written legal agreements are a great way to create clear expectations and therefore help to avoid conflicts. For an entrepreneur or business owner, tackling your legal needs can seem daunting, but it doesn’t need to be.

Not sure where to start? Just read on. We’ll explain the six different stages every startup goes through. Learn the secret of how to get started quickly.

Form a Business

When starting a new business, you will need to decide the type of business structure that will be used to operate your business and, if relevant, where you would like to incorporate your company. Some countries are easier than others. Different countries also offer different tax schemes. Be smart in deciding how and where to incorporate!

Own Your Intellectual Property

Make sure you own your trade mark and you maintain and protect it after registration. A trade mark will be one of your most valuable commercial assets if you manage it well.

Fund Your Business

Your business will not be able to grow without funding. Learn what methods are available, what documents you need, and what is the best way for your business to start raising capital at an early stage

Hire a Team

When growing your business, you will need to hire a team. Employment law is complex, so make sure you are in line with legal regulations.

Go Online

Going online can be a lucrative way to expand your business and grow revenue. Think about how to protect customer data, outline terms of use, and include payment terms. Neglecting these basics can put your business at risk.

Sell Goods and Services

There is a wide range of contracts that need to be used regularly in the course of doing business, including before you enter into a commercial relationship, when you sell goods or services, or when you expand or decide to terminate a collaboration.

Start managing your legal needs with Zegal today.

Related Documents

Recover Debt

Debt recovery is a major concern for many small businesses. Make sure you understand how to deal with late payments and follow the right procedures to collect money owed to you.

You should make sure that all your business contracts, such as your Sale of Goods Agreement or Supply of Services Agreement, set out your payment terms in detail so there is no misunderstanding when it comes to cash collection.

If you are selling items, you should also clearly set out payment terms in a Purchase Order when you start to engage customers. Issue Invoices on time and keep track of all payment related documents as these will be critical when chasing payments.

Late Payment Letters

A late payment letter can be a useful and affordable way of chasing up overdue invoices by prompting a customer to pay the overdue amount. Use a First Payment Reminder Letter once the payment becomes overdue. Depending on the original agreement, you might be able to set a certain number of days before you start charging interest.

If the debt remains outstanding, you should send a Second Payment Reminder Letter at a time you consider reasonable, taking into account the number of days you have given the client to repay the debt.

If the debt remains unpaid, a Final Payment Reminder Letter will communicate that you are prepared to commence legal action to enforce the debt collection. This is sometimes called a “Letter before Action” and 14 days is normally the time period given to settle the invoice. At this stage, you might want to seek legal advice, though that may depend on the figure outstanding.

Accepting Payment in Instalments

If your customer does not dispute that money is owed and is willing to make arrangements for the debt to be repaid, you can consider a Letter Accepting Payments in Instalments. Such a letter allows the debtor to pay off the debt with regular fixed instalments.

Start managing your legal needs with Zegal today

 

Related Documents

Like what you just read?


Subscribe to our newsletter and be the first to hear of the latest Zegal happenings, tips and insights!