Order Conditions

Order Conditions are the core terms in a foreign trade contract or order that specify the rights and obligations of both parties, typically including price, payment method, delivery time, packaging, shipping, inspection, claims, and other specific provisions. They are the basis for the buyer and seller to conclude a transaction and also the basis for subsequent performance and dispute resolution. Usage scenarios are mostly seen in proforma invoices, sales contracts, or purchase orders, especially in large transactions or long-term cooperation where detailed listing is required. Notes: Order Conditions should be clear and unambiguous, avoiding confusion with international trade terms (such as FOB, CIF)—the latter only define risk transfer and cost allocation, while Order Conditions cover broader transaction details. Unlike 'General Terms and Conditions of Trade,' Order Conditions are specific to a particular order and legally binding. Practitioners need to ensure that Order Conditions are consistent with letter of credit terms to prevent document discrepancies.