Get it in writing - 5 FAQs about order confirmations

1. What is an order confirmation?

An order confirmation (or order form/purchase order) is a document that sets out the details of products (e.g. goods or software) and/or services being sold. The order confirmation document will include commercial details relating to the order of products and/or services, including details of the products/services being sold and the price payable for those items. The order confirmation document can also be used to incorporate other legal terms and conditions as well (see question 3 below).

A well-drafted order confirmation document can help to prevent disputes and misunderstandings down the line, as it will clearly set out the commercial and legal terms that apply to the order.

2. What information should an order confirmation include?

The specific detail that an order confirmation document includes will depend on the particular circumstances, but it will typically include:

1. Party information - details of the parties, which will usually be a supplier and a customer, will need to be set out in the order confirmation;

2. Order details - this is the core of the order confirmation, and should include the commercial detail of the transaction (e.g. details of the goods / services to be provided, the price payable and any agreed delivery/performance dates);

3. Terms and conditions - it is common for an order confirmation to also incorporate legal terms and conditions, so that it is clear what legal terms apply to the supply of goods/services; and

4. Signature - ideally, an order confirmation will include a signature section so that both parties sign the order confirmation to show their agreement to the terms and acceptance of the content.

All of the sections above can easily be included in Docue’s order confirmation template.

3. Why should an order confirmation incorporate terms and conditions?

An order confirmation can be used as a mechanism to incorporate legal terms and conditions - that means that those terms and conditions will govern and apply to the supply of goods/services under that order confirmation. The terms and conditions will set out the key legal terms that apply to the order, including the obligations that both parties must comply with, any restrictions on use by the customer, limitations on liability and termination rights.

Terms and conditions can be incorporated into an order confirmation in different ways:

1. Attach the terms and conditions to the order confirmation - if the terms and conditions are attached, it is hard to dispute which terms and conditions apply to the order; or

2. Display the terms and conditions on a website - terms and conditions could be displayed on a website and then a link to the terms and conditions can be included in the order confirmation document.

The type of terms and conditions that are incorporated into the order confirmation will depend on the nature of the specific transaction, and whether you are the buyer/seller. Docue has a range of templates to suit different scenarios and each one can be adapted so that it is a set of terms and conditions - find out which one is right for you below:

1. Services Agreement - where you are using the order confirmation to sell services to a customer;

2. Supply of Goods Agreement - where you are using the order confirmation to sell physical goods / products to a customer;

3. Supply of Goods and Services Agreement - where you are using the order confirmation to sell both services and physical goods / products to a customer;

4. Purchase Agreement - where you are a customer purchasing goods and/or services from a supplier; or

5. Recruitment Services T&Cs - where you are using the order confirmation to sell recruitment services to a customer.

4. What is a “battle of the forms”?

It is important to make sure the terms and conditions that you want to apply to a particular order are easily accessible, are clearly communicated to all parties and are agreed in writing, so there can be no dispute over which terms apply and have been agreed. This can avoid a “battle of the forms”.

A “battle of the forms” is a legal term that refers to a situation that can arise when two parties enter into a business transaction, and each party presents its own set of terms and conditions to apply to the sale/purchase. This could happen if a supplier provides an order form to a customer, and then the customer sends back its own form (e.g. a purchase order) containing its own terms and conditions. The general rule is that the terms of the last form to be sent and received by the other party will govern the transaction. To avoid this situation, an order confirmation should include a signature section so that both parties can sign and indicate their agreement to, and acceptance of, the order confirmation document and the incorporated terms and conditions.

5. How can Docue help? Use our order confirmation template.

Quick and easy: Docue’s order confirmation template is easy to use and will allow you to create a customised order confirmation for your business in just minutes. Docue’s lawyer-drafted guidance notes are there to guide you through the process, so that your business can have a consistent and streamlined approach to sales.

Full contract process: After your order form has been created, you can use Docue’s e-signature feature to quickly get the order confirmation document signed. All your signed order confirmations can then be safely stored in one place, using Docue’s secure storage.

Sign up now to use Docue's order confirmation template.