Bid Firm

A Bid Firm is a legally binding offer made by a buyer or seller in foreign trade, usually issued by the buyer, expressing a clear commitment to buy or sell goods at a specified price and under specified terms. Unlike a Bid Without Engagement, once a firm bid is unconditionally accepted by the other party, the contract is formed and the offering party cannot retract. It is commonly used when a buyer initiates an inquiry or when a seller makes a formal offer at the buyer's request, often in commodities, raw materials, or equipment trade. Key points: a firm bid must specify the validity period, product specifications, quantity, price, payment terms, delivery date, and other major terms; the offering party is bound during the validity period, but the firm bid becomes invalid if the other party makes a counter-offer; the difference from a non-firm bid is that a non-firm bid includes reservations such as 'subject to our final confirmation' and has no legal binding force. In addition, a firm bid is usually made in writing and marked 'firm bid' to avoid disputes.