Contract

A contract is a legally binding written agreement in foreign trade that clearly defines the rights and obligations of the buyer and seller, covering terms such as product name, specifications, quantity, price, packaging, delivery, payment, inspection, claims, force majeure, and arbitration. Usage scenarios include: signing a sales contract or purchase contract after formal conclusion of a deal, serving as the basis for performance and dispute resolution. Precautions: The contract must be signed and sealed by authorized representatives of both parties; terms should be specific and unambiguous, and consistent with documents such as proforma invoices and letters of credit; different jurisdictions have different requirements for contract formation (such as offer and acceptance), so it is advisable to stipulate the applicable law and dispute resolution method. Difference from a proforma invoice: A proforma invoice is only used for quotation or applying for a letter of credit and is usually not legally binding. Difference from an order: An order is a unilateral offer by the buyer, while a contract is a mutual agreement. Compared with a sales confirmation, a contract has more complete and formal terms.