Any business / legal people know when an NCNR (non cancellable, non returnable) contract should be signed

[fuzzybabybunny]

NCNR is typically something extremely customized that cannot be sold to anyone else but the original customer. As a result, the manufacturer builds a customized product for a customer, and has the customer sign an NCNR agreement stating that they cannot return or cancel the order after they place it.

But where during the order fulfillment process should this contract be signed? I say that it should be before order booking... but should it be before the customer sends a PO?

Customer requests a price quote for the customized order.
Manufacturer provides a quote.
Customer accepts the quote.
Customer sends manufacturer a customer purchase order.
Manufacturer books the order.

 

[RKS]

Text

this site indicates it is after a PO is received.

honestly it could be a matter of industry custom or if it is a repeat customer it could be how you have conducted prior dealing with that particular client.

 

[GeekDrew]

IMO the contract must be signed at the same time as the customer purchase order, since a purchase order is a warrant of allocated funds. Action upon the contract (be it signing the NCNR agreement or canceling the order prior to booking) would be done immediately after the purchase order is issued.

Disclaimer: I'm not a CPA, nor an attorney, and am in no way qualified to answer any part of your question. It is my good faith attempt to help you, but I cannot be held responsible if my advice is ultimately detrimental to your cause. (include disclaimer_standard)