What is an ICPO (Irrevocable Corporate Purchase Order)?
An Irrevocable Corporate Purchase Order (ICPO) is a document in which a corporate buyer formally orders a commodity on defined terms. It is presented as a firmer commitment than a Letter of Intent, and sellers frequently ask for one before releasing a Full Corporate Offer or allocating cargo.
At a glance
| Term | ICPO (Irrevocable Corporate Purchase Order) |
|---|---|
| Definition | Buyer's binding purchase order including commodity, quantity, terms, and banking information. |
| Category | Deal flow & documents |
| Related terms | LOI (Letter of Intent), FCO (Full Corporate Offer), POP (Proof of Product), SGS Report |
What it is used for
The ICPO is used to move a discussion from interest to a workable transaction. It gives the seller the buyer's legal identity, the exact specification and quantity wanted, the delivery schedule, and the payment instrument the buyer will open.
Key points
- Issued on the buyer's letterhead and signed by someone with authority to bind the company.
- Contains full corporate details, product specification, quantity per shipment and total, delivery terms and destination port.
- States the payment instrument — for example an irrevocable documentary credit — and the issuing bank.
- Often paired with a Bank Comfort Letter or proof of funds to evidence capacity.
What to watch for
- 'Irrevocable' in the title does not make the order enforceable by itself. Enforceability comes from a signed contract and the governing law, not from the word.
- ICPOs circulate heavily in broker chains, often unsigned or copied. Verify the issuing company exists and that the signatory is real.
- Be cautious of requests to issue an ICPO before you have seen any evidence the seller controls the goods.
Frequently asked questions
Is an ICPO a contract?
No. It is an order document that precedes a contract. The binding agreement is the sales and purchase agreement both parties sign afterwards.
Should I send an ICPO before seeing proof of product?
Sequencing is negotiable, and both sides are protecting themselves. A common compromise is to exchange verified company documents first, then ICPO and proof of product simultaneously.
What makes an ICPO credible?
A verifiable company registration, a named signatory with authority, a real bank relationship, and specifications that match how the commodity is actually traded.
Related terms
Lodfy verifies every company on the platform — registration, ownership and sanctions screening — before they can trade.