Order Confirmation

Order Confirmation is a formal document or act in foreign trade transactions whereby the buyer or seller provides written confirmation of the agreed terms of a deal. It is typically issued by the seller after receiving the buyer's order, and covers key terms such as product name, specifications, quantity, unit price, total price, packaging, shipment date, payment method, and trade terms. Use cases include: after the buyer issues a purchase order, the seller accepts and confirms it in the form of an order confirmation; or after negotiations, one party issues a confirmation to solidify the negotiated results. Notes: An order confirmation is not equivalent to a contract, but it is legally binding and constitutes a contract once accepted by the buyer; all terms should be carefully checked to avoid contradictions with prior quotations or correspondence; if the order needs to be modified, it should be clearly marked 'subject to final confirmation' or 'subject to our written confirmation'. Difference from a Proforma Invoice: A proforma invoice is often used by the buyer to apply for a letter of credit or foreign exchange, while an order confirmation focuses more on confirming the transaction itself; compared with a sales contract, an order confirmation is usually more concise but has similar legal effect.