Bid

Bid is a professional term in foreign trade negotiation, referring to the expression of intent by which the buyer proactively proposes to the seller the price, quantity, and other transaction terms for purchasing goods, and undertakes to conclude the transaction on such terms. Unlike an Offer, which is usually made by the seller, a Bid is made by the buyer; therefore, a Bid is essentially a buyer's offer. It is commonly used when the buyer urgently needs to procure, when market competition is intense, or when the buyer wishes to seize the initiative in negotiations. Note: A Bid is also legally binding; once the seller accepts it, the contract is concluded. A Bid should clearly specify the validity period, price, quantity, quality, delivery time, payment method, and other main terms to avoid ambiguity. If the Bid is rejected or countered, the original Bid becomes invalid. The difference from an Inquiry is that an Inquiry merely indicates an intention to inquire and has no legal binding force, whereas a Bid is a formal quotation. The difference from a Counter-offer is that a Counter-offer is a modification of the original Offer or Bid.