Outright Purchase

The foreign trade term 'Outright Purchase' (买断) refers to a transaction where the buyer pays the full amount in one lump sum and permanently acquires ownership of the goods, with the seller retaining no rights or repurchase obligations. It is commonly used in distribution, agency, or consignment-to-outright scenarios, such as exclusively buying out the sales rights of a brand in a specific region. Usage scenarios include: outright agency (buyer bears all sales risks), outright inventory purchase (seller clears stock in one go), and outright purchase of copyright or trademark usage rights. Notes: After an outright purchase, the risks of unsold goods and price fluctuations are borne by the buyer; the contract must clearly specify the scope of the buyout (territory, duration, product line), whether returns are allowed, and intellectual property ownership; the difference from 'agency' is that agency does not transfer ownership or bear sales risks; the difference from 'consignment' is that in consignment, ownership remains with the seller and settlement occurs only after sale. The outright purchase price is usually lower than the regular wholesale price, but the buyer must pay the full amount upfront, resulting in significant cash flow pressure. Foreign trade practitioners should assess their own distribution capabilities to avoid blind outright purchases leading to inventory accumulation.