There is no such thing as a soft offer, soft offers don't exist. All offers are liable to last approval, offers aren't reliant on final confirmation however quotations are, or request for quotations (RFQ's). This is a legal matter in contract law offer and acknowledgment are well outlined; offers indicate eagerness to contract on certain terms, the aim being that it shall become binding as fast as it is accepted by the individual addressed, the offeree. Offers must be accepted precisely as presented, without alteration. Any alteration is a counter-offer and destroys the first offer. This has to be accepted. However, requests for extra info and clarification don't represent a counter offer.
Now, it's right that under USA UCC or Uniform Commercial Code, there are some differences in how offers acknowledgment ties. The UCC permits definite expression of offer approval, or written confirmation of ad-hoc agreements, to represent valid approval even though further terms are mentioned or different terms from the primary offer or agreement are said.
Such extra terms are then treated as suggestions for addition into the governing contract and in effect become part of the contract unless the opening offer in particular boundaries acknowledgment to the offers terms or notification of objection to the such terms is presented in a fair time frame, and under certain other conditions. The conditions outlining an offer of sale include price, completion date, payment terms, and detailed fair outline of the service or product, including condition and quantities. Offers can be revoked before acceptance, so long as it isn't encompassed in a choice, by satisfactory communication to the offeree. You can literally write a credible offer with a Bic pen on a piece of paper if you wished to, and it might still be binding, even if that sounds a bit crazy.
Under USA UCC codes, and well as trade law as recognized by the EU and United Countries, quotes and offers are two separate undertakings and offers are binding under acknowledgment, where a soft offer would not make sense. Legally almost everywhere a quote is known as non binding (with a couple of minor exceptions in some scenarios, in certain domestic environments like the United States, in which explicit indication is given). For that reason there isn't any such thing as a soft offer, despite the odd use of this term by some traders and by law all offers are binding per and subject to the terms suggested.
Purchase orders are like offers in this regards. Offers generally are binding at time of acknowledgment. Under UK law such approval doesn't need to be suggested at the time of acknowledgment, legally it still is binding and under US law such approval does have to be suggested, once done it is jointly binding.
Either way an officially accepted offer is binding on all parties, in a similar way a contract is. This has to be accepted, offers create contractually binding conditions.
Plain and simple, soft offers don't exist, the word offer has particular legal definitions. Again, you can consult with any trade attorney to clear this up. This explains why there is no such thing as a soft offer. The phrase soft offer could be used informally in specific areas but this is a non standard use and thus evaded to stop confusion due to non standard terms.
Again, to recap by law all offers are legally binding thus actually a soft offer doesn't exist, while soft non binding quotations can and do exist. These details are crucial to understand, don't undervalue their significance.
One of the attributes of business is the transfer of funds from bank to bank. We have talked to those that "think" they are going to get paid on a deal in three days. We ask "have you talked to your banker where the funds are going to be wired?" The answer is "No, I haven't." Our answer to them is they have no clue to what they are involved in or what they are doing.
For example, you happen to close a transaction and you have given all your banking information to the appropriate parties. You know for sure the deal is going to close and let's say you are going to get 1 million bucks in profit sharing arrangements. Of course, for those that understand this business the funds do go into an escrow account of a well established attorney. The question is you want your money wired to your account to a different bank. Have you told your banker about the transaction? Let's say you haven't. Now 1 million dollars is going to go to your account and you haven't informed your banker, what do you think he/she is going to do? One Million bucks came from where? Do I need to explain more? Unless you regularly do deals this large your banker is going to question the source of funds, bottom line. That is why, as contrary to jokers, these deals do not take place in three days as I have been told numerous times. Unless you already have the existing relationship and transactional history.
This is why asking for an "MFPA" otherwise known as a Master Fee Protection Agreement upfront is nonsense and just broker talk. You have to have the established relationship with those you are working with and also your Banker. The bank will need to know the source of funds - period. And not the quote that funds are clean, free, of all criminal origin. It does not work that way. If your banker has any doubts your funds will be in question if you do not inform him beforehand with documentation.
If you have any doubts and you think you have a deal that is closing call your banker today and tell him that I believe One Million Dollars may be deposited in my account in the near future. See what he/she says?
Borrowing a CD or certificate of deposit is fairly easy when the client has the funds available. The issuer is able to put a CD for you on DTC/Euroclear or delivered via SWIFT. An important thing to keep in mind, DTC/Euroclear is typically more cost effective for delivery of the instrument.
Once the instrument is placed on screen and validated by your banker, the placement charge is to be paid inside forty eight hours. The instrument will be issued for a term of one year to five years with an option to renew were the backend payment is due inside sixty days after placement of the instrument on screen and delivered to the client via MT-760 if using swift.
The issuers CD's as stipulated and agreed on by contract, are allotted in an individual or company name, and are basically used for supply of a project, commercial endeavors, and balance sheet and credit enhancement.
The typical time frame to complete a CD transaction for new clients is 45 to 60 days.
All instruments are AA rated from Top World Banks. The CD's may be employed for collateral purposes and permit lending. As a borrower, you may be allotted a quoted Bank Instrument from a major global financial institution, allotted straight in your name. Your instrument is placed on DTC with a one, three, or five year time for borrowing the instrument. Over 90 percent of the clients borrow the instrument for five years as it is more cost effective to do so.
Transactions are from a minimum quantity of 10 million dollars if delivered via DTC/Euroclear and 50 million dollars if delivered vis swift. However, the minimum can be agreed up with a cooperative and qualified client. The Bank Instrument must be returned unencumbered to the Bank 15 days before its maturity date or the client may have an option to renew the term of the lease. It is easy to extend the lending period for another 5 years (annual cost remains the one of first year) with fifteen pre-advice days if issuance is via swift. The CD's are available on DTC or they can have bank to bank (MT799 form) confirmation where they're cash-backed with repository receipt. The issuer CD's are in one to five year increments with low up front cost and structured payments. The client gets DTC info to determine the instrument when set up charge is escrowed. A set up charge gets the CD started and live for the first sixty days. Payment for the balance of the annual charge is based on the term of borrowing the instrument and is due inside sixty days with a payment guarantee from the bank.
For more information please visit Professional Commodity Training