Which document outlines the terms of the purchase agreement?

The document that outlines the terms of the purchase agreement is a contract. A contract serves as a legally binding agreement between the buyer and the supplier, detailing the conditions under which goods or services will be provided. This includes specifics such as pricing, delivery timelines, quantities, payment terms, and other essential clauses that govern the transaction.

In contrast, a purchase requisition is an internal document generated by a department requesting a purchase, but it does not establish any terms between the buyer and supplier. A purchase order, while important, typically acts as a confirmation of the purchase details after a contract has been established, rather than serving as the agreement itself. A quotation is a document provided by a supplier that outlines proposed prices and terms but does not constitute a formal agreement until it is accepted and a contract is established. Therefore, the contract is the definitive document that outlines the comprehensive terms of the purchase agreement.