Firm offer
Meaning
A firm offer is a binding offer open for acceptance for a set time; if the other side accepts in time and without changes, the deal is made.
Also written as Offer firm, Firm
Firm offer explained
Firm offers in chartering always come with a time limit, for example “firm for reply within 30 minutes”. While the offer is firm, the party making it shouldn't be offering the same ship or cargo elsewhere.
A reply that changes any term is a counter-offer, which kills the original offer.
Related terms
Indication
An indication is a non-binding signal of the rate or terms a party might accept, used to test the market before firm offers are made.
Counter-offer
A counter-offer is a reply that changes the terms of an offer; it rejects the original offer and becomes a new offer the other side can accept.
Main terms
Main terms are the key commercial points of a fixture (ship, cargo, ports, dates, rate, demurrage and the CP form) agreed before the details.