What Is an Order Letter?
An order letter, also called a purchase order, is a formal letter issued by businesses to order goods or services from a vendor. This letter functions as a contract between the buyer and the seller, according to About.com. It outlines the details of the merchandise or service, including price, quantity, terms, mode of payment, requested delivery date and the address of the location where the order should be delivered.
Normally, a sales quotation or offer letter is required before a commercial entity issues order letters. A copy of the offer letter is then attached to the order letter to serve as proof in case a dispute arises between the buyer and the seller. The document also protects the seller in case the buyer refuses to pay.
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