Order Terms

Order Terms are the specific provisions in a foreign trade contract regarding the formation, content, and execution conditions of an order. They typically cover core elements such as the method of order confirmation, product description, quantity, price, payment terms, delivery time, packaging, inspection, and claims. They are commonly found in Purchase Orders (PO), Sales Confirmations (SC), or Proforma Invoices (PI), and serve as the legal basis for both parties to fulfill their obligations. Usage scenarios include: the seller countersigning after the customer places an order, confirming details before the issuance of a Letter of Credit, and serving as a criterion for judgment when disputes arise. Precautions: Be sure to distinguish them from trade terms (such as FOB, CIF)—order terms are comprehensive conditions at the contract level, while trade terms only define risk, cost, and place of delivery; at the same time, ensure that the order terms are strictly consistent with the subsequent Letter of Credit terms to avoid discrepancies. Unlike 'General Terms and Conditions of Trade,' order terms are specific to a particular transaction and are unique and binding. Foreign trade practitioners should review them item by item to prevent performance risks caused by ambiguous wording.