How to Write a Soft Corporate Offer (SCO)

Follow these steps to draft a Soft Corporate Offer (SCO) that survives counterparty review, bank scrutiny and, if needed, ICC arbitration. Grab the free Soft Corporate Offer (SCO) template at the end.

Step-by-step

1. Header
Title the document 'Soft Corporate Offer' and state that price and quantity are subject to seller reconfirmation.
2. Commodity & spec
Commodity, grade, indicative specification.
3. Indicative price basis
Target CIF/FOB price band and any Platts/Argus reference.
4. Ports & Incoterms
Load port and typical discharge basins. Incoterms 2020.
5. Procedure to FCO
State that a buyer LOI/ICPO + POF/RWA unlocks the firm FCO.

Common pitfalls to avoid

Leaving placeholder text like [ ] or {seller name} in the executed copy.
Missing signature date, or signing outside the validity window quoted on the document.
Referencing Incoterms without the year - always cite 'Incoterms 2020'.
Omitting the arbitration seat and governing law - defaults vary by country.

Free template

Free Soft Corporate Offer (SCO) Template

Free Soft Corporate Offer (SCO) template in editable Word and PDF format. Seller's non-binding indicative offer draft for commodity trading.

Get the template

FAQ

Is an SCO worth signing?

SCOs are informational. Do not treat an SCO as a firm offer.

How long is an SCO valid?

Usually 'subject to prior sale'. It expires as soon as the seller allocates the parcel to another buyer.

Other how-to guides

How to Write a Sales & Purchase Agreement (SPA)How to Write a Letter of Intent (LOI)How to Write a Irrevocable Corporate Purchase Order (ICPO)How to Write a Full Corporate Offer (FCO)How to Write a Non-Disclosure Agreement (NDA)How to Write a NCNDA (Non-Circumvention, Non-Disclosure)How to Write a IMFPA (Irrevocable Master Fee Protection)How to Write a NCNDA + IMFPA (Combined)