• Documents Necessary to Bind The Purchasing Party

What document should be maintained to bind purchasing party of goods or Sundry Debtors in case they turn out doubtful and we need to initiate suit for recovery ?

Like right i only supply invoice and take Receiving or acknowledgement with stamp or sometimes without stamp on second or duplicate copy of Invoice. Is this sufficient papers to initiate suit against party in case things turn bad ?

Please suggest easy documents to maintained for supply of goods ?

Most of times parties are unable to supply Purchase Order and order are received in oral form only.

What else we can write on terms and conditions area of Invoice to bind the party to make payment ?

What is procedure to initiate proceedings against party in case of non payment or refusal to pay bill after repeated reminders ?
Asked 7 years ago in Business Law

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4 Answers

insist on purchase order

2) only on receipt of purchase order should you supply the goods

3) terms and condition of payment should be specified in purchase order

4) further jurisdiction clause in case of disputes have to be incorporated in purchase order

5) there must be clause for payment of interest for delayed payments

6)if there is no purchase order even then you cna file summary suit under order XXXVII of CPC for recovery of dues

7) invoice and delivery challan constitute a contract and you can sue the purchaser on basis of bills raised by you . in such a case invoice should mention period within which payment is to be made , interest clause for delayed payment and jurisdiction clause

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

1. The only document required to bind the other party to the contract is the contract itself. The rights and liabilities stem out of contract. If the contractual obligations are breached then a suit for specific performance or recovery may be instituted.

2. In the absence of purchase order the contract can be proved on basis of the signature of the buyer or his representative on the duplicate of invoice.

3. The clauses pertaining to the jurisdiction of the courts in the event of a dispute and liquidated damages may be mentioned on the invoice.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1.Yes all the papers duly acknowledged in writing about business dealings is enough proof and for this no specific format is required.

2. However to remove doubt insist on placing written order and if you supply the goods on oral order then get them signed on the invoice mentioning the date when they placed the verbal order.

3. The invoice is binding contract provided it clearly mentions the goods ordered and supplied. The same must be duly acknowledged in writing and later you can also send e-mail stating the same thing.

4. If the other party fails to make the payment you can file cvil suit for recovery of money on this basi. It is goof enough proof.

Devajyoti Barman
Advocate, Kolkata
22917 Answers
497 Consultations

5.0 on 5.0

insist on purchase order

2) only on receipt of purchase order should you supply the goods

3) terms and condition of payment should be specified in purchase order

4) further jurisdiction clause in case of disputes have to be incorporated in purchase order

5) there must be clause for payment of interest for delayed payments

6)if there is no purchase order even then you cna file summary suit under order XXXVII of CPC for recovery of dues

7) invoice and delivery challan constitute a contract and you can sue the purchaser on basis of bills raised by you . in such a case invoice should mention period within which payment is to be made , interest clause for delayed payment

Ajay Sethi
Advocate, Mumbai
95168 Answers
7604 Consultations

5.0 on 5.0

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