TOPIC RESEARCH ON INQUIRY, OFFER, COUNTER OFFER, ACCEPTANCE, AND HOW TO WRITE INQUIRY, OFFER, COUNTER OFFER, ACCEPTANCE LETTER

THE UNIVERSITY OF DANANG UNIVERSITY OF ECONOMICS The faculty of International Business  TOPIC RESEARCH ON INQUIRY, OFFER, COUNTER OFFER, ACCEPTANCE, AND HOW TO WRITE INQUIRY, OFFER, COUNTER OFFER,[.]

THE UNIVERSITY OF DANANG

UNIVERSITY OF ECONOMICS The faculty of International Business

……….……….

TOPIC:

RESEARCH ON INQUIRY, OFFER, COUNTER OFFER, ACCEPTANCE, AND HOW TO WRITE INQUIRY, OFFER, COUNTER OFFER, ACCEPTANCE

LETTER.

Lecturer: Nguyen Thi Phuong Thao

Class: 46K01.2 Group 7

Da Nang, 2022

I Explain inquiry, offer, counter offer, and acceptance 3

1 Inquiry 3

2 Offer 3

a Definition 3

b Legal validity 4

c Classification 4

3 Counter offer 5

a Definition 5

b Feature 5

4 Acceptance 6

a Definition 6

b The effect of acceptance of an offer is provided in Article 18.2 of the CISG 1980 6

c Withdraw an acceptance provided for in Article 22 of the CISG 1980 7

II Inquiry, Offer, Counter-offer, and Acceptance Letters 7

1 Inquiry Letters 7

a Requirements of Inquiry Letters 7

b Contents should be included in an Inquiry Letter 7

c Format of Inquiry Letters 7

d Sample of Inquiry Letters 10

2 Offer Letters 10

a Regarding firm offers 10

b Regarding free offers 10

3 Counter offer Letters 12

a Form of a buyer's counter offer letter 12

b Form of a seller's counter offer letter 12

4 Acceptance Letters 13

III General example for Inquiry, Offer, Counter Offer, and Acceptance 14

1 Inquiry Letter 15

2 Offer Letter 16

3 Counter offer 1 - Buyer's Counter Offer Letters 17

4 Counter offer 2 - Seller's Counter Offer Letters 18

5 Acceptance 19

IV References 20

I Explain inquiry, offer, counter offer , and acceptance

- Forms of inquiry: An inquiry can be made verbally, in writing, or in otherspecific behavior

- The content of the inquiry is not limited, depending on the inquirer Askingprices does not bind the responsibility of the price inquirer, so it is often used toprobe the market

or makes provision for determining the quantity and the price

 Thus, the offer will be determined when it is sent to one or more identifiedpeople, expressing a clear will to conclude a contract for the sale of goods Aclear expression of will here be determined by whether the offer states thegoods and the quantity, price, and basic terms of a contract of sale Onceaccepted by the offeree, the offeror shall be bound by the offer unless theoffer expires or the offeror cancels it before the offeree accepts the offer

- The concept of an offer according to the provisions of Vietnamese law:

Offering was first used in the Commercial Law 1997 and continues to be regulated inthe 2005 Commercial Law Accordingly, the offer must contain the main contents ofthe goods sale and purchase contracts such as the name of the goods, quantity, qualitycontrol specifications, price, payment method, delivery time and place, and deliverymethod Offering includes an offer to sell and an offer to buy Offers can be madeverbally, in writing, or in other specific behavior

b Legal validity

The legal validity of an offer is provided in Article 15 of the 1980 CISG.Legally, the offeror will be bound to his obligations by the promises made in theoffer to others The validity period of the offer is fixed by the offeror; if notspecified, this period is 30 days from the date the offer is sent However, the offerwill not be legally binding on the offeror in the following cases:

 The offer does not reach the offeree Due to some reason such as a wrongaddress or delay in the delivery of information that makes the offer not reachthe place of the offeree, the offer will not be legally binding on the offeror

 The offeror receives notice of refusal from the offeree in accordance withArticle 17 of CISG 1980: “An offer, even if it is irrevocable, is terminatedwhen a rejection reaches the offeror”

 The notice of withdrawal of the offer is delivered to the offeree before or atthe same time as the invitation to offer as provided in Article 15.2 of theCISG: “An offer, even if it is irrevocable, may be withdrawn if thewithdrawal reaches the offeree before or at the same time as the offer.” Thisprovision applies to irrevocable offers

According to the provisions of the Vienna Convention, only in the event that thenotice of withdrawal reaches the offeree before or at the same time as the offer, theofferor will not be bound by the terms committed in the offer Therefore, if theofferor wishes to escape his obligations under the offer, the offeror must givenotice of withdrawal by means of communication faster than that which he hasused to send a previous offer, so that the notice of withdrawal can reach the offereebefore or at the same time as the offer

 Notifying the offeror of the cancellation of the offer to the offeree before he

or she sends his acceptance of the offer is specified in Article 16.1: "Until acontract is concluded an offer may be revoked if the revocation reaches theofferee before he has dispatched an acceptance.” This is the rule that applies

to the type of offer that can be canceled This will only happen if the offeror'snotice of cancellation is delivered to the offeree before he or she sends hisacceptance of the offer to the offeror

Legally, in the event that although the offeree has received the offer but has notexpressed his or her opinion, the contract is considered to have not been formed.Thus, with respect to a refundable offer, if prior to submission of the acceptance ofthe offer to establish a contract, the offeree receives notice of the offeror'scancellation of the offer, then this offer will no longer be valid binding value of theofferor's obligations

c Classification

- Classify offers based on the proactive level of the offeror:

 Passive offer: is the seller's offer if the buyer's request (inquiry letter) hasbeen received before (Passive offers are also known as responses toinquiries).

 Active offer: is the seller's initiative to offer before the buyer's inquiry letterhas not been received

- Classify offers according to the obligation of the offeror:

 Firm Offer: is an offer to sell a certain lot, specifying the time for which theofferor is bound to be responsible for his offer This time is also known as thevalidity period of the fixed offer During the validity period, if the buyer fullyaccepts the offer, the contract is considered concluded

 Free Offer: is an offer that does not bind its originator, and at the same timewith a shipment, one can offer freely to many customers In a free offer, it isnecessary to specify “Offer without Engagement” A free offer becomes acontract upon reconfirmation by the exporter The buyer cannot blame theseller if, after accepting the offer, the seller does not sign a contract with him

3 Counter offer

a Definition

- A counter offer that responds to the original offer When an individual requests

a counter offer, it means that the initial offer has been rejected and suggested

by another offer The refund responder offers three options for the originalofferer: accept the respondent's counter offer, reject it, or make another offer

- According to the provisions of Article 19.1 of the CISG 1980: “A reply to anoffer which purports to be an acceptance but contains additions, limitations orother modifications is a rejection of the offer and constitutes a counteroffer”

b Feature

- One side makes an offer first when two parties are negotiating a transaction or abusiness deal A counter offer is a reaction to the initial offer that may alter thedeal's conditions and price Depending on which side is requesting the counteroffer, the suggested price may be greater or lower than the original price If aperson refuses or rejects the original offer, he or she can renegotiate by thecounter

- The parties are allowed to make a counter offer several times during thenegotiation process until an agreement is reached In back-and-forthnegotiation, each party will make a counter offer at a price more favorable tothem than the previous offer

Neither party is obligated to accept the other's offer until they have agreed to acontract, which happens when a counter offer is accepted It is also time to form

a binding and enforceable contract against either party The counter offer willinvalidate the previous offer and the original offer is no longer liable for it

- A counter offer may include explanations of the terms of a previous offer orrequest additional information to clarify the previous offer A negotiation iscomplete when both the buyer and the seller agree and accept the final termswithout any additional conditions or modifications.

- When a party makes a counter offer, that party usually sets the condition When

a seller receives a low-priced counter offer, he or she can counter that byoffering a price he feels is reasonable The buyer can accept the offer orrenegotiate it The seller can then also oppose the buyer's offer until anagreement is reached The person receiving the counter offer does notnecessarily accept it, but negotiates to the contrary

- Legally, an acceptance can only give rise to a contractual relationship when theofferor is aware of the offeree's acceptance According to the provisions of theCISG 1980, the offeree's acceptance of an offer is valid only when it isexpressed by a statement or by conduct, indicating his agreement to the content

of the offer content of the offer Thus, according to the provisions of theConvention, the silence or inaction of the offeree will not automatically beconstrued as acceptance

b The effect of acceptance of an offer is provided in Article 18.2 of the CISG 1980

- “An acceptance of an offer becomes effective at the moment the indication ofassent reaches the offeror An acceptance is not effective if the indication ofassent does not reach the offeror within the time he has fixed or, if no time isfixed, within a reasonable time, due to account being taken of the circumstances

of the transaction, including the rapidity of the means of communicationemployed by the offeror An oral offer must be accepted immediately unless thecircumstances indicate otherwise”

Legally, the acceptance of an offer is only valid when it is delivered to theofferor However, an acceptance becomes legally valid only when it reaches theofferor if it meets the following requirements: As provided for by the CISG, insome cases an acceptance must be unconditional Although the offeree does notaccept the offer in its entirety but introduces some new conditions, suchacceptance is equally valid as unconditional acceptance, if the new conditions

set forth by the offeree do not change the main content of the offer (Article19.2).

- Acceptance must be delivered to the offeror within the time limit specified inthe offer or within the reasonable time specified in Article 18.2 of the CISG1980

- The reasonableness of time for legally valid acceptance is determined as: If theoffer is made orally, it must be accepted immediately (except in special cases);

If an offer is made by other means of communication, the reasonable acceptancetime is the time that takes into account details of the transaction such as thespeed of the communication media used by the offeror

c Withdraw an acceptance provided for in Article 22 of the CISG 1980

“An acceptance may be withdrawn if the withdrawal reaches the offeror before

or at the same time as the acceptance would have become effective” This provision

is applicable in cases where the offeree has previously accepted the offer andexpressed his opinion through a formal notice to the offeror but has subsequentlychanged his mind I do not accept the offer and send a cancellation notice to theofferor

II Inquiry, Offer, Counter-offer, and Acceptance Letters

1 Inquiry Letters

a Requirements of Inquiry Letters

- The letter of inquiry should be short, clear, and directly focus on the maininformation to be asked

- The tone in the inquiry letter should be polite and formal

- Putting the company name at the top of the letter (or company's pre-printedletterhead)

- Specifying the address of the company sent the letter to

- Date should be skewed to the right

b Contents should be included in an Inquiry Letter

In the content, we need to inform the shipper what kind of goods we are in need

of, ask the shipper to send the Catalog, product sample and simultaneously theprice, quality of the goods, the required quantity to be supplied, and the deliverytime, payment conditions and other necessary conditions, etc

c Format of Inquiry Letters

Opening: Mention that the purpose of the letter is to inquire about products and

services State why we know the recipient (via the press, television, ) and introducethe company (the company's highlights)

+ Opening salutation: Dear Sir or Madam or To Whom It May Concern

+ Hints to the problem: Why we know products or the supplier of products:

● I am replying to your advertisement in….

● With reference to your advertisement (ad) in

● We are interested in … you advertised in … of last week’s issue.

● Your advertisement (Your article in the paper ) on has come to our attention.

● We were impressed by the … that was displayed on your stand at this year’s … Exhibition.

● Regarding your advertisement (ad) in

● I have seen one of your safes in the office of a local firm and they passed on your address to me.

Or:

● We were advised by … of…(TCCI) that you are producing …

● The name of your firm was given to us/ were recommended to us by

…, who have been regular buyers (purchasers/customers) of your products for some years.

● We have been informed by …, with whom we have had business relations for quite a long time.

+ Briefly introducing our company in a few sentences to make a goodimpression on the partner:

● We would like to take this opportunity of introducing ourselves as one of the

● We are a Company/ Corporation which specializes in…

● At present, we are in the market for…

● We are the manufacturer of We are looking for/ seeking for

- Body : Mention the information to be asked (sample products, salary, quotation,

contract conditions )

+ To inquire about materials, samples, or molds of products, we can use thefollowing sample email sentences:

● Would/ Could you please send me a leaflet/

We would be grateful if you could send…

● Will you please send me a copy of your catalogue and price list of , together with copies of any descriptive leaflets that I could pass to prospective customers.

● Please send me a copy of your current catalogue I am particularly interested in safes suitable for a small office.

+ Request more information: inquire more about the wholesale and retailprice list, payment method

● I would also like to know

● Could you tell me whether …?

● We would also appreciate your letting us have full information regarding…

● Please would you send me an up-to-date price list, quoting your most competitive prices for your building materials.

● We intend to place a substantial order and would like therefore to like to know what quantity discount you allow.

- Closing :

+ Express desire to get a quick response from the recipient and give thanks atthe end of the letter

● We hope to hear from you in the near future.

● If the price quoted is competitive and the quality up to standard, we will order on a regular basis.

● If you can offer the concession we have asked for, we will place a substantial order.

● Prompt delivery would be necessary as we have a rapid turnover We would therefore need your assurance that you could meet all delivery dates.

● If the prices offered are competitive and the quality is of the standard

we required, we will place large orders with you in the future.

● If the product is satisfactory, we will place further orders with you in the future.

● Provided you can offer favorable quotations and guarantee delivery within four weeks from receipt of order, we will place regular orders with you

+ Signature: Yours faithfully, Yours sincerely, Yours truly

d Sample of Inquiry Letters

2 Offer Letters

a Regarding firm offers

- Opening : Thank the customer for sending an inquiry letter to our company.

- Body : answer the questions of the buyer and send them catalogue, samples,

price list, delivery time, method of payment, terms of discount

- Closing : Indicates the expectation of the customer's reply and promises.

- Sample :

b Regarding free offers

Free offers mean that after we have searched for the customer's information(email, website, items that the customer is trading ), we actively write an email tothe customer to express our desire to sell and cooperate with the customer