Confirmed Order

A Confirmed Order refers to an order in which the buyer and seller have reached an agreement on the terms of the transaction and both parties have formally confirmed it. It signifies the formation of a contract and is legally binding on both parties. Usage scenario: Typically, after the buyer issues a Purchase Order (PO), the seller reviews it and countersigns a Proforma Invoice (PI) or Sales Confirmation (SC), and the buyer then countersigns to confirm, at which point the order becomes a Confirmed Order. Precautions: Before confirmation, carefully check the product name, specifications, quantity, unit price, trade terms, payment method, delivery time, packaging, and other terms to avoid subsequent disputes. Unlike a Pending Order, which has not yet taken effect; unlike a Proforma Invoice, a Confirmed Order is proof of contract formation, whereas a Proforma Invoice is merely an invitation to treat. Difference: A Confirmed Order emphasizes mutual consent, while 'order confirmation' is a unilateral act. In foreign trade practice, a Confirmed Order is the basis for arranging production, stocking, booking shipping space, and opening letters of credit.