Standing Offer

Published by MBA Skool Team, Last Updated: January 22, 2018

What is Standing Offer?

Standing Offer is an agreement between a supplier and buyer where supplier agrees to provide the desired goods and services to the supplier as and when asked at a predetermined price. Standing offer is not a contract. It is only valid for a set period after which it needs to be renewed. There are various terms and conditions attached to the agreement. Such an offer mostly cannot be revoked.


Standing offers are mostly used when the buyer is ordering the goods very frequently and wants to get the goods delivered when actually required. It can be used when the buyer anticipates the future demand of these goods but is unable to identify the exact demand and hence a standing offer is made. It helps saving the time and cost so that the buyer can have the goods as and when required at a price already set.


Such services are often used for the common goods like food, pharmaceuticals, tyre supplies, plumbing requirements and office supplies etc

 

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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