When it comes to formalizing a business or legal transaction, a well-drafted ordering agreement is a crucial document. It defines the terms and conditions of a purchase or sale, protects the interests of both parties involved, and ensures that the transaction runs smoothly. In this article, we will discuss the ordering agreement format and outline the essential elements that it should include.

Header Information:

The header of the ordering agreement should contain the following information:

• Date: The date when the agreement is signed

• Parties: The legal names, addresses, and contact information of the parties involved in the transaction.

• Subject matter: A brief description of the subject matter of the transaction, such as the product or service being purchased.

Definition of Terms:

The ordering agreement should include a section that defines important terms used throughout the document. It is crucial to clarify the meaning of terms like “purchase price,” “delivery date,” and “warranties” to avoid confusion or misunderstandings between the parties.

Scope of Work:

The ordering agreement should outline the scope of work or description of the goods or services being purchased or supplied. This section must specify the quality, quantity, and specifications of the product or service, along with any other relevant information regarding the transaction.

Pricing and Payment:

The pricing section of the ordering agreement should specify the purchase price of the goods or services being supplied. The payment section should include information on payment terms, such as the deposit required, delivery payment, and final payment due date.


The delivery section of the ordering agreement should cover the delivery date of the products or services, the mode of delivery, and any additional charges associated with delivery, such as shipping or handling fees.

Warranties and Representations:

The ordering agreement should include a warranty clause that outlines any warranties made by the supplier regarding the quality, condition, and performance of the products or services being sold. It should also include any representations made by the supplier regarding the products or services.

Termination and Cancellation:

The termination and cancellation section of the ordering agreement should outline the conditions and procedures for terminating or canceling the agreement. This section should also specify any penalties or fees associated with termination or cancellation.

Dispute Resolution:

The ordering agreement should have a dispute resolution section that outlines the dispute resolution process in case of any disagreements between the parties. This section should specify the jurisdiction and venue for any legal action and whether the parties will seek arbitration or mediation.


The ordering agreement should conclude with the signatures of both parties to the agreement, along with the date of execution.

In conclusion, a well-drafted ordering agreement format should include the essential elements mentioned above. It should be written in clear and concise language, leaving no room for ambiguity or confusion. A properly drafted ordering agreement is essential for any business transaction and helps to minimize disputes and misunderstandings.