What are essential elements that should be included in a Purchase Order?

• A. Supplier name and contact person.
• B. Delivery method based on contract terms only.
• C. Items, quantities, prices, delivery terms and delivery address.
• D. Color of packaging.

Answer: (C)

A Purchase Order must precisely define what is being bought and how it will be delivered. The essential elements are the items or goods, the quantities to purchase, the price or price terms, the delivery terms, and the delivery address. These pieces create a clear, actionable order: the items tell the supplier what to provide; quantities ensure the right amount; prices establish the cost; delivery terms set when and how the goods should be shipped; and the delivery address indicates where to send them. Without any of these, the order can be vague or lead to disputes. In contrast, focusing only on supplier contact or on packaging color misses what actually determines the transaction, so the combination of items, quantities, prices, delivery terms, and delivery address best captures the essential information a PO must convey.