Proforma Contract

A Proforma Contract is an informal, preliminary contract document provided by the seller to the buyer before formal signing in foreign trade. It is typically used to confirm transaction intent, apply for import licenses, or open letters of credit. Its content is similar to a formal contract, including commodity name, specifications, quantity, unit price, total price, delivery time, payment terms, etc., but it has weak legal binding force and generally states 'subject to final contract' or 'for reference only'. Usage scenarios include: the buyer needs a proforma contract to handle import approval, foreign exchange approval, or letters of credit; the seller uses it for quotation and confirming order details. Note: A proforma contract is not equivalent to a formal contract. If the buyer accepts it and opens a letter of credit based on it, it may constitute a binding offer; it should be clearly marked 'Proforma' to avoid confusion with a sales contract. The difference from a Sales Contract is: a proforma contract is a unilateral preliminary document, while a sales contract is a formally signed document with legal effect by both parties; it is similar to a Proforma Invoice, but a proforma contract emphasizes the completeness of contract terms.