business






 

Question by  johns (2)

How does a purchase order differ from a letter of intent?

 
+7

Answer by  melissa23 (1002)

A purchase order is saying you are for sure going to purchase an item. When you write a letter of intent you are intending on buying the product.

 
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Answer by  mammakat (11147)

A purchase order's a legal document that can be legally binding. A letter of intent is only that, it states your intent,you can't hold it binding on the other party

 
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Answer by  ZackRoca06 (7)

A letter of intent indicates that you are going to do the necessary due diligence to understand the product with the ultimate intent of buying it. A purchase order is the actual commitment to make the purchase. But a letter of intent is often written such that unless something is found seriously wrong, it is followed by a PO.

 
+5

Answer by  TheAnswerFairy (2345)

A letter of intent simply states that you intend to do something in the future, in this case, make a purchase. The purchase order is when you actually order something.

 
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