Module 08 · Order of Precedence of Contractual Terms

CASE 2: GTS/GTP signed on quote + PO issued

Scenario: Signed quote with general terms, then PO issued

Objective: Avoid the trap of accepting a quote containing the supplier's GTS without reservation.

Sources

This scenario is very common: you sign or validate a supplier's quote that contains (or refers to) their GTS, and then issue a purchase order.

Step 1

Accepted quote = Contract concluded

A sufficiently specific quote, accepted without reservation (signature or written agreement), constitutes a valid contract. The supplier's GTS referenced in the quote become part of the contract.

Step 2

PO issued = What value?

If the PO is consistent with the quote (same products, quantities, prices): it is simply an execution instruction, without modifying the already-formed contract.

If the PO contains different conditions (e.g., different payment terms): beware! The PO may constitute an offer to modify that the supplier must accept.

⚠️ Risk

The quote's GTS prevail over your GTP

If you signed a quote containing the supplier's GTS WITHOUT raising reservations, and then issue a PO with your own GTP, case law generally considers that:

  • The contract was formed when the quote was accepted → the supplier's GTS apply
  • Your PO only modifies the contract if the supplier expressly accepts it

✅ Best practices:

  • Never accept a quote without raising reservations about the supplier's GTS
  • Respond to the quote: "Accepted subject exclusively to the application of our attached GTP"
  • Include in the PO: "Our GTP prevail over any GTS of the Supplier"
  • Negotiate a framework agreement for recurring suppliers
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