Purchase Confirmation

A Purchase Confirmation is a written document issued by the buyer (importer) to the seller (exporter) in international trade to confirm the terms of a transaction. Its legal nature is equivalent to a simplified contract. It is usually made by the buyer and sent to the seller for signature after the parties have reached a preliminary agreement through inquiry, offer, and counter-offer. It is commonly used in transactions involving small amounts, frequent orders, or long-term cooperation with old customers to simplify the contract process. Points to note: 1. It must clearly state core terms such as product name, specifications, quantity, unit price, total price, packaging, shipment date, payment method, insurance, and dispute resolution; 2. It is binding on both parties only after the seller signs and returns it; otherwise, it is merely an offer from the buyer; 3. It is the opposite direction of a Sales Confirmation, which is issued by the seller; compared with a formal Contract, a confirmation is more concise in format but has equal legal effect. The difference is: a Purchase Confirmation emphasizes the buyer's initiative, a Sales Confirmation emphasizes the seller's initiative, while an Order is usually the buyer's unilateral intention and requires the seller's acceptance to form a contract.