Last updated: September 28, 2019
Topic: BusinessCompany
Sample donated:

Ex- it the purchasing agent is given the express authority o make a contract, he has the implied authority to negotiate the terms including: quantity, quality, delivery conditions, price, and payment. 4. Emergency Authority- Emergency authority is used only when the purchasing manager must protect the principal’s rights or property when a consultation with the principal is impossible at the time. Even if the purchaser has no implied or express authority, he or she can still take action.

What is the document at a workplace where it is most common to find the, “Expressed Authority,” given to the buyer? In the Job Description. f you become a buyer, what requirements should you make sure are met so hat you are not held liable for purchases made by you? 2. The four components of an enforceable contract are (make sure that you can explain what they mean also): 1. The parties must be capable. The parties know what they are doing.

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They are not impaired in any way. 2. The subject of the matter must be legal and valid.The product or service must be legal and not against public policy.

3. There must be mutual consideration. Consideration means that something of value passes from one party to a second party in exchange for a promise of the second party. The value must be consistent with the second party’s promise. 4.

The parties ust reach an agreement by offer and acceptance. The seller makes on offer and the buyer accepts, negotiates, or rejects the offer. There are generally three formal processes for initiating a bid.

They are stated below.Give an industry exampleof when you might use each. Explain each industry example in three to four sentences. 1 . Request for Information (RA) is a proposal requested from a potential seller or a service provider to determine what products and services are potentially available in the marketplace to meet a buyer’s needs and to know the capability of a seller in terms of offerings and strengths of the seller. An RFI, however, is not an invitation to bid, is not binding on either the buyer or sellers, and may or may not lead to an RFP or RFQ. Wikipedia – http://en.

ikipedia. org/wikl/ Request_for_proposal 2. Request for Quotation (RFQ) is used when discussions with bidders are not required (mainly when the specifications of a product or service are already known) and when price is the main or only factor in selecting the successful bidder. Wikipedia – http://en. wikipedia. org/wiki/Request_for_proposal 3. Request for Proposal (RFP) is a solicitation made, often through a bidding process, by an agency or company interested in procurement of commodity, service or valuable asset, to potential suppliers to submit business proposals.The RFP process brings structure to the procurement decision and is meant to allow the risks and benefits to be identified clearly up front.

Wikipedia – http://en. wikipedia. org/wiki/ What are the four possible outcomes of an offer (make sure that you can explain what each means)? 1. The Offer may lapse. If a purchaser receives a quote for 5 tons of rebar and on the face of the quotation you are given seven days to decide whether to accept or decline the offer; if you fail to take action during the seven days, the offer no longer exists. . The offer may be rejected.

The rejection kills the offer completely. The rejection must be communicated to the supplier either verbally or in writing. If the offer is amended, it becomes a counteroffer. 3.

The offer may be revoked. By law, a company has the free will to make an offer, and they have the free will to revoke the offer before it is accepted. Consideration has not occurred. Revoking should be avoided. Ways to avoid revocation: Obtain a firm offer, write an option contract, and secure a bid bond. 4. The offer may be accepted.

The offer is accepted and a contract is made. Explain a, “Firm Offer.