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asked on Oct 2, 2014 at 11:51
i had received a Purchase Order from a listed company on Jan 2014 at amounting RM 150K,We had supplied the goods to the customer,after few months thier Top management refuse to proceed the payment as the answer from them is the P/O is not signed by authorised personnel,infact the P/O which i received was signed by a branch department head & the approving authority financial limit for the dept head is over.We are actually don't know about thier authority's.

The customer told us they need to investigate & will pay after the investigation report,Promised to pay may be after few months,untill to date the payment still pending, I had follow up with the branch dept head.but he told me he doesn't know about his autority financial limit before he signed the P/O.
can we take a legal action for this matter ? or any solution/guidelines ? We need your advise.
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answered on Oct 2, 2014 at 21:13
Me no lawyer or financial adviser but also a victim of P/O's..

Just share my thoughts..

1/ Yes, you can sue, but read thru all the conditions stated on the purchase order you have received. Line by line, word by word. If all the conditions have been fulfilled, your lawyer will say sue and have maybe 20-30% fees of the total. Chances if the Public Listed Comp says that there is a breach of rules, definitely there is.. So, dun put all yr trust in lawyers completely, either way, they get their fees. Use yr good judgement. There are undocumented procedures and standard business practices to fullfil. Did you give a written letter of acceptance of the P/O c.c. direct to their "Finance Dept". Your billing system includes duplicates invoices, signed d/o's and their P/O's to their HQ..??

2/ Your own financial officer needs upgrading of knowledge and skills plus experience. This is just a single breach. More highly technical ones can come your way. I had a P/O worth 1.5M for monthly supplies spread out 12months. My bosses assigned me to answer "Take or dont Take".. What would you have done if you are in my place ..??

If in doubt refer to Standard Business Laws and Administration. Lawyers are skill at their profession but nutty about Business Operating Systems.
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answered on Oct 3, 2014 at 11:37
No problems here.
This is a straightforward case if all goods have been delivered.
By law, you don't need to know what their company policies are about. How can you know?
As long as a PO is given, and it is not a fraud, there is a firm contract.

Make sure you have all the documents ready before you sue.

a. Purchase Order
b. Invoice
c. Delivery Order ( signed and preferably chopped )
d. Statement of Accounts  ( if don't have, start sending now )
e. Proof of Partial Payments ( if any )

Send them a Letter Of Demand first.

Good Luck.
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