As you know, goods or services can be purchased by orders placed under a master contract or by orders that are not placed under a master`s contract – I refer to these as a P.A., as nails. They can be issued for one-time purchases or regularly as part of an ongoing relationship. It follows that if a set of general terms in a standalone OP leads BetaCo to generate disproportionate transaction costs, the conclusion of the agreement would also result in additional transaction costs for Acme, as it is in talks with BetaCo. Currently, the terms and conditions in my company`s core contracts are intended to be complete, but those for our individual orders are shorter. One of the main reasons is that the inclusion of generic terms in a po imposes requirements on the supplier. As the terms and conditions in our stand-alone POs have not been previously negotiated with the Supplier, they are a source of delay, as the supplier must read them and may, once they have done so, hold back on one or more general terms. And the longer the terms and conditions, the greater the likelihood of a delay, and the greater the risk that the supplier will decide that it would prefer not to make the agreement given the additional unilateral word choice. Sometimes we have to negotiate; At other times, we agree with the supplier that it be resolved in the event of a conflict under the Single Code of Trade. This is of great interest to me, as our legal department has prepared a new set of terms and conditions for our stand-alone PO, which essentially reflects the terms and conditions of our master type contract. This means that the new general concepts are global and one-sided in our favour.
It is also three times longer than the general terms we currently use for standalone POs. I am torn between the desire to protect our business by using a comprehensive set of terms and conditions for all our transactions and the desire to use a shorter set of terms and conditions to accelerate our standalone PO operations, most of which are low risk. I`d like to hear what you think. Of course, BetaCo`s transaction costs could be significantly reduced in the next transaction by Acme.