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Supply Chain Management Professional (SCMP) · Question

Which document legally binds a buyer and a seller to a specific transaction, outlining terms and conditions?

A Purchase Order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It becom

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Question: Which document legally binds a buyer and a seller to a specific transaction, outlining terms and conditions?

Answer options:

  • Request for Proposal (RFP)
  • Purchase Requisition ✅ Purchase Order (PO)
  • Bill of Lading

Correct answer: Purchase Order (PO)

Explanation: A Purchase Order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It becomes a binding contract upon acceptance.

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