Purchase Contract

A Purchase Contract is a legally binding written agreement between the buyer and seller in international trade for the sale and purchase of goods. It is typically drafted and issued by the buyer (importer) and specifies the commodity name, specifications, quantity, unit price, total amount, packaging, delivery date, port of shipment, port of destination, payment terms, inspection standards, claims and arbitration clauses. Use cases include: the buyer placing an order directly with a supplier, confirming a deal after a trade show, or issuing a specific order under a long-term supply framework. Precautions: contract terms must be consistent with the L/C, proforma invoice and other documents; trade terms (e.g., FOB, CIF) and the point of risk transfer should be clearly stated; and attention should be paid to the other country's legal requirements on contract form. Compared with a Sales Contract, a Purchase Contract is from the buyer's perspective but has the same legal effect; unlike a Proforma Invoice, which is only used for quotation or applying for an L/C and has no formal contractual binding force.