An order confirmation is the seller’s written acceptance of a purchase order, fixing the agreed quantity, delivery terms and other commercial conditions, and serves as the binding record of contract formation for a consignment.
In trade practice
Buyers should compare the order confirmation line by line against the purchase order immediately on receipt, checking product codes, pack sizes, incoterms, delivery dates and any quality references. Discrepancies in grade, packaging or lead time that go unchallenged at this stage are difficult to dispute at delivery. Suppliers commonly issue confirmations by email or through a trading portal, and some contracts require countersignature within a defined window to be valid.
In a specification
A specification or supply agreement may require the order confirmation to reference the applicable product specification number and lot allocation, making those documents contractually binding for the consignment.