Top 5 mistakes that make your purchase orders invalid (France and Luxembourg)
The purchase order is a key document for securing your sales… but certain mistakes can undermine its validity and create legal complications.
The purchase order is a key document for securing your sales and commitments with your customers. However, common mistakes can undermine its validity, leading to disputes and legal complications. The obligations differ slightly between France and Luxembourg, so it is important to understand these nuances in order to avoid the pitfalls.
Here are the 5 major mistakes to avoid, depending on the country where you operate:
1. Leaving out the mandatory details
In France, the law requires the purchase order to contain:
- Full identification of the parties (company name, address, SIRET number).
- A precise description of the products or services (description, quantity and value).
- The unit price, and the total excluding and including VAT.
- Payment terms and deadlines.
- Delivery times and conditions.
- A reference to the general terms and conditions of sale (CGV).
In Luxembourg, the mandatory details are not as formally set out in law, but it is strongly recommended to include all the essential information: identification of the parties, details of the services, prices, deadlines and terms and conditions, in order to guarantee the document's validity.
2. Not getting the customer to sign
In France, a handwritten or electronic signature is essential for the purchase order to be contractually binding and enforceable in the event of a dispute.
In Luxembourg, a signature is not always strictly mandatory in B2B, but it remains highly advisable to prove the parties' agreement and secure the transaction.
3. Not attaching the general terms and conditions of sale (CGV) or not getting them accepted
In France, the terms and conditions must be brought to the customer's attention before the contract is concluded and explicitly accepted; otherwise their validity may be challenged.
In Luxembourg, although the regulations are more flexible, getting the terms and conditions accepted remains an essential good business practice to avoid any dispute.
4. Changing the purchase order after signature
In both countries, any change after approval requires an amendment signed by both parties. A document changed unilaterally loses all legal value.
5. Using an outdated or unsuitable template
A template that does not comply with local regulations or is poorly structured can invalidate the purchase order, whether in France or in Luxembourg. It is crucial to update your documents regularly in line with the rules in force in each country, particularly regarding VAT and legal notices.
Conclusion
With eKo, you can easily create purchase orders that comply with French and Luxembourg requirements. Would you like a demo? Get in touch!