T&C discrepancy arguments...
Discussion
Submitted a quote to provide engineering services with a repeat Client, we don't have a formal contract so I provided my company standard Terms & Conditions with the quote. Received the Purchase Order this week, in which they've copied most parts over but changed payment terms to Net 45 days (ours are Net 30 days) and also awarded themselves a 2% discount if they pay within 10 days of accepting the invoice.
The likelihood of them qualifying for the 2% discount is low - based on previous performance
- but I am interested to know if they did manage it, how it might transpire. My feeling is if they wanted to discuss such payment terms the time is prior to the award of the Purchase Order (i.e. send a contract document with such demand upfront and we can consider it/ accept it/ argue it first). Chucking it in the PO is rather cheeky and I have written back stating that the payment terms are incorrect.
I'm interested to hear of any stories of similar situations where Terms & Conditions provided with a quote conflict the terms provided by the Client in the Purchase Order. If it did go to resolution, would one set win over the other?
The likelihood of them qualifying for the 2% discount is low - based on previous performance
- but I am interested to know if they did manage it, how it might transpire. My feeling is if they wanted to discuss such payment terms the time is prior to the award of the Purchase Order (i.e. send a contract document with such demand upfront and we can consider it/ accept it/ argue it first). Chucking it in the PO is rather cheeky and I have written back stating that the payment terms are incorrect. I'm interested to hear of any stories of similar situations where Terms & Conditions provided with a quote conflict the terms provided by the Client in the Purchase Order. If it did go to resolution, would one set win over the other?
KevinCamaroSS said:
What has effectively happened is they are now offering to buy on their terms, not yours. Your offer to sell has been rejected by their changing the terms. It is now up to you to either accept the new terms or reject them.
This. Don't take it personally and don't let it become a problem. Reply stating the deal is as per the original t's and c's. Alternatively give them a call and discuss, what's your position of strength in the relationship? Always look for a positive non litigious outcome.
Marcellus said:
IIRC It's referred to as "the battle of the forms" whereby the last set of t&cs that are exchanged and accepted are the ones that apply to the contract.
So unless you do something the buyers terms apply.
So if you have to quote before you get the PO (as is usual), you will always be second...So unless you do something the buyers terms apply.
Fortunately I never had to play the T&Cs game; I always did my work on time on budget and my clients were (with the exception of a large T-shirt printing outfit in Twickenham) very pleasant.
Always considered it just 'kin rude of a buyer to try and unilaterally alter a sellers terms of business without discussion.
What kind of a t
t does that anyway? It'd also ring alarm bells as to how the whole commercial relationship might be carried out from the other side - especially in the event of a problem or dispute.
What kind of a t
t does that anyway? It'd also ring alarm bells as to how the whole commercial relationship might be carried out from the other side - especially in the event of a problem or dispute.Marcellus said:
Not sure who you're try to say is second but in this instance the contract will be on the buyers terms.
We agree, though possibly by different routes.With my impoverished supplier head on, I can think 'How dare this grasping corporation try to bend me to its will'. But with my big 'I am buyer' hat on I think 'This is my money, I'm say what goes'.
I have escalated it to the department head for the two POs I have now received. I will see what they say - I expect it is a case of the buyer does what is "his" job. If someone higher up tells him to alter it, he probably will but until then "not worth my job mate". I have also requested a service agreement to be in place for future adhoc work so that at least the terms can be argued up front rather than when the monies are due to change hands.
I have also requested a service agreement to be in place for future adhoc work so that at least the terms can be argued up front rather than when the monies are due to change hands.Buffalo said:
I have escalated it to the department head for the two POs I have now received. I will see what they say - I expect it is a case of the buyer does what is "his" job. If someone higher up tells him to alter it, he probably will but until then "not worth my job mate". I have also requested a service agreement to be in place for future adhoc work so that at least the terms can be argued up front rather than when the monies are due to change hands.
Out of interest who did you send the quote to? might it be that effectively that person doesn't actually have the authority to place the order and the buyer is trying to consolidate spend and you as the supplier are getting drawn in to the internal politics of it all? I have also requested a service agreement to be in place for future adhoc work so that at least the terms can be argued up front rather than when the monies are due to change hands.Gassing Station | Business | Top of Page | What's New | My Stuff