Non-Firm Offer

A Non-Firm Offer in foreign trade is a non-binding offer made by the offeror with reservations. It usually does not specify a validity period or includes phrases such as 'subject to our final confirmation', 'for reference only', or 'subject to goods being unsold'. It has no legal binding force on the offeror. It is often used to test the market, reply to inquiries, promote inventory or goods with undetermined specifications, or when the offeror has not yet secured the supply. Precautions: A non-firm offer cannot serve as the basis for a valid acceptance; even if the offeree accepts, no contract is formed unless the offeror confirms again. It should be clearly marked with reservations to avoid confusion with a firm offer. The difference from a firm offer is that a firm offer is complete, definite, and without reservation, and a contract is formed once the offeree accepts within the validity period; a non-firm offer lacks these legal effects and only serves to invite the other party to make an offer or inquiry. Foreign trade practitioners should carefully distinguish them to prevent disputes caused by mistaking a non-firm offer for a firm offer.