A Firm Offer is a type of offer in international trade where the offeror presents all transaction terms and commits to being irrevocably bound by the offer within its validity period. Once the offeree unconditionally accepts within the validity period, the contract is formed. A firm offer typically includes clear specifications of goods name, quality, quantity, packaging, price, delivery time, payment method, and validity period. It is commonly used when a seller proactively promotes goods or after a buyer's inquiry for a formal quotation. Notes: A firm offer must specify a validity period, and the offeror may not revoke or modify it arbitrarily; unlike a non-firm offer (offer without engagement), which includes reservations (e.g., 'subject to our final confirmation') and has no legal binding force. Additionally, a firm offer may be withdrawn before acceptance, but the withdrawal notice must reach the offeree before or simultaneously with the offer. Difference from counter-offer: A counter-offer is a rejection of the firm offer and constitutes a new offer.
📝 Examples
1. We hereby make you a firm offer, valid until May 20, subject to unsold: 500 metric tons of Northeast China soybeans at USD 450 per metric ton CIF Rotterdam, shipment in June, payment by irrevocable sight L/C. (Note: Specifies validity and terms, emphasizing binding force of the firm offer)
2. In response to your inquiry of April 10, we make the following firm offer: 1,000 dozen men's cotton shirts at USD 35 per dozen FOB Shanghai, shipment in May, sight L/C, valid for 3 days. (Note: Responds to inquiry, sets short validity to prompt acceptance)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner