CC Unit 4, Offers

8/14/2019 CC Unit 4, Offers

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Commercial CorrespondenceUnit 4

Offers and

Cover Letters of Offers


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What is an offer?

An offeris a promise to supply goods orservices on the terms stated.

Usually the offerer is the seller, and theofferee is the buyer.

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Types of offers

Firm offer

Also called Quotation with qualifyingstatements

Free offer (offer without engagement)

Also called Quotation

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Firm offer

Withqualifying statements, usually abouttime validity

For acceptance within 14 days. The prices quoted will apply only to

orders received on or before 31 March.

Usually made to one buyer only Without sales confirmation

Notlegally binding until accepted

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Free offer(offer without engagement)

Withoutqualifying statements, providingnegotiable terms by using adverbs normally or

usually, or by asking the customer to confirm. May be made to several buyers.

Notlegally binding even when acceptedby the

buyer. Only binding when the seller, after receipt of the

buyers acceptance, confirms that acceptance

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Free offer(offer without engagement)

Normallywe allow a 23% trade discount

off net prices with payment on a documentsagainst payment basis. Please let us know ifthis arrangement is satisfactory.

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Parts of an offer

1. Opening

Express thanks for the enquiry and/or

pleasure in offering2. Main message

Mention at least 7 terms and conditions

3. Closing

Express hope for orders and futurebusiness

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Opening

Free offer:

We thank you very much for your enquiry

of (asking) for and are happy/ glad/pleased to make you an offer on thefollowing terms and conditions.

We and take pleasure in making youan offer for the said goods.

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Opening

Firm offer:

We thank you for and are happy to offer

firm until 25 March 20__ on the terms andconditions as follows.

We are pleased to make you a firm offer,subject to acceptancewithin 21 days, for 10

machines

We thank you to make you an offerwhichis valid until October 20__ on the following

terms and conditions. 9


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Opening

Firm offer: Useful expressions

We are pleased to make you an offer which

is valid until We are pleased to offer firm until

This offer is firm for 20 days

This offer remains open for acceptancewithin 15 days

This offer is subject to acceptance within

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Main message

Mention at least 7 terms and conditions:

1. Name of the goods

2. Quality and specification3. Quantity

4. Details of prices

5. Packing and marking

6. Delivery

7. Terms of payment11


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Main message

More terms and conditions with machines :

8. Technical documents

9. Warranty or guarantee

Others:

Discounts

Offering items not asked for

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Main message

1. Name of the goods/commodity

woolen sweaters, style L-29

Style L-29 woolen sweatersL-29 woolen sweaters/ woolen sweaters L-29

washing machines, model TD236Model TD236 washing machines

TD236 washing machines

washing machines TD236 13


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Main message

2. Quality and specification

Quality and specification:as per samples

Quality: as per enclosed technical description

Specification: as per enclosed catalogue No. 23/TL

3. Quantity

1,000 pieces/ units/ items/ sets

600 tons/ metric tons/ MT tons

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Main message

4. Prices

Price: 110.00 per unit CIF Hai Phong including

packing5 elements:

1) Currency: / $/ GBP/ USD/ VND

2)Amount:110.00

3) Unit price: per unit/ per 1,000 units/ per ton

4) Terms of price: CIF Hai Phong

5) Including/excluding packing15


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Main message

4. Prices

INCOTERMS: 4 groups

Group C (CFR, CIF, CPT, and CIP) Group D (DAF, DES, DEQ, DDP, and DDU)

Group E (EXW)

Group F (FCA, FAS, and FOB)

Others:

Carriage Paid (C/P): charges paid by the sender

Carriage Forward (C/F): charges paid by the receiver

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Main message

4. Prices

INCOTERMS

30,000.00 CIF Hong Kong (the price includesall delivery costs to Hong Kongcost,insurance and freight)

USD35,000.00 FOB Rotterdam (the priceincludes delivery costs to when the goods areon board ship at Rotterdam)

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Main message

5. Packing and marking

Packing: in export customary packing

Packing: in seaworthy cartonsmarked/numbered 1-6

Packing: in seaworthy wooden cases for

long voyage Marking: upon the buyers instructions

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Main message

6. Delivery

Delivery: in one lot/ shipment in December

08, 20__

for immediate shipment

The machines can be dispatched within 6

months from receipt of your formal order. Shipment: within 3-4 weeks of receivingorder

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Main message

7. Terms of payment

Bank draft/ bankers draft

Bank transfer (mail, telegraphic)

Bill of exchange (sight draft or term draft)

Sight draft: a bill of exchange payable

immediately upon acceptance (accept to pay)

60 days (after) sight: payable within 60 daysof acceptance (60 D/S)

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Main message

7. Terms of payment

Cheque

Letter of credit (L/C)

at sight or at days sight

Revocable L/C: that can be cancelled

Irrevocable L/C: that cannot be cancelled

Cash on delivery (COD)

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Main message

7. Methods of payment

Payment: (to be made/effected) in US dollars

(pounds sterling)by an irrevocable letter of credit(at sight/at 60 days sight) to be opened with(via/through/at) Lloyds Bank, London, 15 daysbefore (prior to) the shipment, valid for 45 days,

to the account of Vietcombank,in our favour (infavour of the seller)for the total value of thegoods to be shipped.

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Main message

8. Technical documents

Two copies of users manual to be

supplied with each unit of goods.9. Warranty/Guarantee

12 months from use or 18 months fromdespatch/dispatch.

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Closing

Expressing hope for orders and future business

We look forward to your early order.

Thank you for your interest. We look forwardto hearing from you soon.

We hope very much that we can reach

agreement on the terms quoted. We look forward to the opportunity of doing

business with you.

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Practice 1

1. Thank you for your enquiry of 1 Decemberfor

(asking for) Lao Cai apatite. (Hoang Thach cement,kitchen utensils, rattan chairs, and woolen carpetsof various types/ designs)

2. In reply (response) toyour enquiry of October 20

asking for tinned/canned peanuts, pineapples,cucumbers, we are happy to offer you these threeitems on favorable conditions.

3. We are pleased to receive your enquiry of 14November for anise and pine oil.As requested, wehave already sent you the samples by (parcel) post.

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Practice 1

4. We thank you for your enquiry of 8 October for our

vaseline and are pleased to make you a firm offer,(which is) subject to acceptance within 10 days, for1,000 tons of vaseline at the price of USD815.00 perton, CIF London.

5. Weare interested in the purchase of 10 Model X30pumps, and 10 Model K25 pumps. We wonder if youcould/ can offer usa 5 % discount (a discount of5%)on such an amount.

6. Weregret our inability(that we are unable) to giveyou a discount on such a small quantity. If you arewilling to place an order for 30 pumps, we will (are

pleased to)give you a 2.5% quantity discount.

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Practice 1

7. The delivery is to be made as soon as possible and

not later than1 December.(We would like you to deliver the goods asap andnot later than 1 December.)

8. We will try our best to deliver the goods in mid

November or by the end of that month at thelatest.

9. Regarding(With regard to) terms of payments, we

suggest (stress) that it should be made by anirrevocable letter of credit.

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Practice 1

10.Payment: by an irrevocable letter of credit to be

opened at (through/with)Tokyo CommercialBank, 15 days before the shipment at the latest,valid for 30 days, to the account of Vietcombankin our favorfor the total value of the goods to be

shipped.

11.We would highly appreciate it if you could deliverhalf of the ordered goods immediately, the rest

will be shippedin two weeks time

.

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Practice 2

Dear Mr X

Re: Rush MatsWe thank you for your enquiry of 25 June 20__and are happy (glad) to learn that you are

particularly interested in (the purchase of)ourrush mats. We are pleased to make you an offer,subject to our final confirmation (acceptance)upon receipt of your order, on the following termsand conditions:

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Practice 2

1. Commodity: fancy rush mats (patterned rush mats)

2. Quantity: 5,000 pieces3. Specification: as per enclosed specification

4. Price: 1.00/piece, CIF London, including packing

5. Packing: 20 pieces to be packed in one bale, which

is wrapped in strong rush-mating and steel hooped.6. Delivery: in one lot in August 20__

7. Payment: in pounds sterling by an irrevocable letterof credit to be opened at (through/with) the

Commercial Bank of London to the account ofVietcombank in our favour, 15 days before (prior to)the shipment.

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Practice 2

We look forward to your prompt order and

guarantee that (assure you that) any of yourorders will be given our best attention.

Yours sincerely

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Practice 3

The Vietnam national Sundries Import and Export Corporation

36 Ba Trieu Street, Hanoi, Vietnam

Tel: Fax: Email:

Your ref: 17 August 20__

Our ref: NT/123

24 August 20__

Mr John Smith

M.D. Edward and Co., Ltd

Finewell House

8 Finsbury Square

London EC2

England 32


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Practice 3

Dear Mr Smith

We thank you for your inquiry of 17 August 20__

(asking) for our table tennis bats, model VS 44TD,

and badminton bats, model VB 50MT. We would

like to offer firmuntil 3 September our badmintonbats on the following terms and conditions:

1. Commodity: VB 50MT badminton bats

2. Specification: as per enclosed catalogue No.22/95VS

3. Quantity: 500 pairs33


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Practice 3

4. Price: USD2.00 per piece FOB Haiphong port

including packing5. Packing: in export customary packing

6. Marking: upon buyers instructions

7. Delivery: in one lot in October 208. Payment: in US dollars by an irrevocable letter

of credit to be opened with ABC Bank, London,

15 days prior to the shipment, valid for 45 days,to the account of DEF Bank, in our favour for

the total value of the goods to be shipped.

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Practice 3

We regret that the VS 44TD table tennis bats are out

of stock. However, we would offer you Model VS45MH of the same quality on similar conditions with

Model VS 44TD and at the price of USD8.00 each.

We hope you will find our terms and conditionssatisfactory. We are looking forward to your order

soon.

Yours sincerely

Nguyen Thanh

Export Manager35

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