What is the difference between a contract and a purchase order?
A contract and a purchase order, while they may sound very similar, are actually two different legal documents. In Minnesota, a contract is a legally binding agreement between two or more parties. The contract outlines the promises made by each party and the terms of the agreement in clear and concise language. In order to be legally enforceable, the agreement must be in writing, signed by both parties, and evidence of mutual consideration must be present. A purchase order, on the other hand, is an offer from a buyer to purchase goods or services from a seller. In Minnesota, a purchase order is used to provide specific details of a transaction between a seller and a buyer, including the quantity, description, and cost of the goods and/or services being purchased. A purchase order is typically not legally binding unless there is an accompanying contract. While a contract outlines the promises and agreements between parties, purchase orders set out the details of the transaction.
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