What are written orders that become contracts when signed by an authorized representative called?

The correct answer identifies written orders that become contracts upon being signed by an authorized representative as "Sales orders." A sales order is a specific document that outlines the details of a purchase, including information about the buyer, the goods or services being purchased, and the terms of sale. When this document is signed off by an authorized individual, it formalizes the agreement between the buyer and the seller, legally binding them to the terms outlined within.

Understanding why "Sales orders" is the right choice is crucial for grasping the concepts behind sales transactions and contracts in a business context. In the world of professional selling, recognizing this terminology helps ensure that salespeople are clear about their documentation and commitment processes.

While "Orders" and "Contracts" are related terms, they do not precisely define the specific document that becomes binding through an authorized signature. "Purchase agreements," similarly, refer to broader legal contracts but do not represent the particular written order context typically used in sales transactions. Thus, "Sales orders" serves as the correct terminology, clearly delineating the step in the sales process where a verbal agreement transitions into a binding contract.