Commodity transactions often involve several commercial documents. Each document serves a different purpose and should be used at the correct stage of the transaction.
LOI
A Letter of Intent is an initial expression of interest. It usually states what the buyer wants to purchase.
ICPO
An Irrevocable Corporate Purchase Order is a more formal buyer document showing serious purchasing intent.
SCO
A Soft Corporate Offer is an indicative offer from the seller side.
FCO
A Full Corporate Offer is generally more detailed and formal than an SCO.
SPA
The Sales and Purchase Agreement is the key contract setting out binding commercial terms.
NCNDA
A Non-Circumvention and Non-Disclosure Agreement protects introductions, confidential information and commission arrangements.
Related: What Is an ICPO? · What Is an SCO?