Question

When does a purchase order become binding?

A.
when the company expresses intent to send a purchase order

B.
when the company actually sends the purchase order

C.
when the vendor accepts the purchase order

D.
when the company receives an invoice

Answer 1

[AI-generated answer — Bot]

B. when the company actually sends the purchase order

Answer 2

[AI-generated answer — Step-by-Step Bot]

The correct answer is C. When the vendor accepts the purchase order. This is when a purchase order becomes binding. The company expresses its intent to purchase by sending the purchase order, but it is not binding until the vendor accepts it. The vendor's acceptance indicates their agreement to fulfill the order and the terms stated in the purchase order.