Start with a qualified requirement

An LOI must be issued directly by the Principal Buyer and should identify the buyer’s legal entity, authorized signatory, product, complete specification, initial and contract quantity, destination, Incoterm, delivery timing and intended commercial path. An Authorized Buyer Mandate may introduce the requirement, but Nexus requires direct Principal Buyer engagement. An ICPO may be used in some markets, but its title does not make the buyer qualified by itself.

Nexus treats the requirement as actionable only when procurement authority, operating need or offtake pathway, beneficial ownership and the contracting entity can be confirmed through appropriate corporate channels.

Commercial alignment comes before a definitive offer

Before an FCO or equivalent definitive offer is issued, the relevant supply program must be aligned to the buyer’s specification, quantity, destination and timing. The parties also need a common understanding of the pricing basis, inspection, delivery, payment instrument, document sequence and validity period.

A professional offer identifies who is making it, the authority behind it and the conditions that must be satisfied. It should not rely on unsupported screenshots, unverifiable proof-of-product files or documents circulated through unexplained intermediary chains.

The SPA governs performance

The sale and purchase agreement or other definitive contract converts aligned commercial terms into binding obligations. It should address product, quantity, price formula, inspection, title and risk, delivery, payment, representations, default, remedies, governing law and dispute resolution with appropriate professional advice.

An Incoterm allocates defined delivery responsibilities, but it does not replace the rest of the contract. Likewise, a signed LOI or FCO is not a substitute for complete definitive terms unless the document expressly creates obligations under applicable law.

Document quality is measured by consistency

Every stage should use the same legal names, product description, quantity, currency, pricing basis, delivery point and commercial roles. When those facts change without explanation, the process should pause until the discrepancy is reconciled.

  • The contracting entity and bank-account identity align
  • The signatory’s authority can be verified
  • The product and quantity remain consistent across documents
  • The named benchmark, unit and adjustment are explicit
  • Sensitive documents are released only for a defined diligence purpose