CC unit 4, offers Commercial Correspondence Unit 4

Free offer: •We thank you very much for your enquiry of… asking for … and are happy/ glad/ pleased to make you an offer on the following terms and conditions.. •We are pleased to make y

Commercial Correspondence

Unit 4 Offers and Cover Letters of Offers

What is an offer?

An offer is a promise to supply goods or

services on the terms stated

Usually the offerer is the seller, and the

offeree is the buyer.

Types of offers

Firm offer

Also called Quotation with qualifying

statements

Free offer (offer without engagement)

Also called Quotation

Firm offer

 With qualifying statements, usually about

time 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

Not legally binding until accepted

Free offer

(offer without engagement)

 Without qualifying statements, providing

negotiable terms by using adverbs “ normally ” or

“ usually ”, or by asking the customer to confirm.

 May be made to several buyers.

 Not legally binding even when accepted by the

buyer.

 Only binding when the seller, after receipt of the buyer’s acceptance, confirms that acceptance

Free offer

(offer without engagement)

• Normally we allow a 23% trade discount

off net prices with payment on a documents against payment basis Please let us know if this arrangement is satisfactory

Free offer:

•We thank you very much for your enquiry

of… (asking) for … and are happy/ glad/

pleased to make you an offer on the

following terms and conditions

•We … and take pleasure in making you an

offer for the said goods.

•We are pleased to make you a firm offer,

subject to acceptance within 21 days, for 10

machines …

•We thank you … to make you an offer which is valid until October 20 on the following terms

and conditions.

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 acceptance within

15 days …

•This offer is subject to acceptance within …

Main message

Mention at least 7 terms and conditions:

1.Name of the goods

2.Quality and specification

Main message

woolen sweaters, style L-29

Style L-29 woolen sweaters

L-29 woolen sweaters/ woolen sweaters L-29

washing machines, model TD236

Model TD236 washing machines

TD236 washing machines

washing machines TD236

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

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

4) Terms of price: CIF Hai Phong

5) Including/excluding packing

Main message

4 Prices

INCOTERMS: 4 groups

 Group C (CFR, CIF, CPT, and CIP)

 Group D (DAF, DES, DEQ, DDP, and DDU)

Main message

• Packing: in export customary packing

• Packing: in seaworthy cartons

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 receiving order

Main message

7 Terms of payment

 Bank draft/ banker’s 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 days of

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)

Main message

• 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) Lloyd’s Bank, London, 15 days

before (prior to) the shipment, valid for 45 days,

to the account of Vietcombank, in our favour (in favour of the seller) for the total value of the

goods to be shipped.

Main message

• Two copies of user’s manual to be supplied

with each unit of goods

• 12 months from use or 18 months from

despatch/dispatch.

Expressing hope for orders and future business

• We look forward to your early order

• Thank you for your interest We look forward

to 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

Practice 1

1 Thank you for your enquiry of 1 December for

( asking for ) Lao Cai apatite (Hoang Thach cement, kitchen utensils, rattan chairs, and woolen carpets

of various types/ designs)

2 In reply (response) to your enquiry of October 20

asking for tinned/canned peanuts, pineapples,

cucumbers, we are happy to offer you these three items on favorable conditions.

3 We are pleased to receive your enquiry of 14

November for anise and pine oil As requested , we have already sent you the samples by (parcel) post

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, for 1,000 tons of vaseline at the price of USD815.00 per ton, CIF London.

5 We are interested in the purchase of 10 Model X30 pumps, and 10 Model K25 pumps We wonder if

you could/ can offer us a 5 % discount (a discount

of 5%) on such an amount.

6 We regret our inability (that we are unable) to give you a discount on such a small quantity If you are willing to place an order for 30 pumps, we will (are pleased to) give you a 2.5% quantity discount.

Practice 1

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

not later than 1 December

(We would like you to deliver the goods asap and not 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 the

Practice 1

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

opened at (through/with) Tokyo Commercial

Bank, 15 days before the shipment at the latest ,

valid for 30 days, to the account of Vietcombank

in our favor for the total value of the goods to be shipped.

11.We would highly appreciate it if you could deliver

half of the ordered goods immediately, the rest will be shipped in two weeks’ time

Practice 2

Dear Mr X

Re: Rush Mats

We thank you for your enquiry of 25 June 20

and are happy (glad) to learn that you are

particularly interested in (the purchase of) our rush mats We are pleased to make you an

offer, subject to our final confirmation

(acceptance) upon receipt of your order, on

the following terms and conditions:

Practice 2

1 Commodity: fancy rush mats (patterned rush mats)

2 Quantity: 5,000 pieces

3 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

letter of credit to be opened at (through/with) the Commercial Bank of London to the account of

Vietcombank in our favour, 15 days before (prior

Practice 2

We look forward to your prompt order and

guarantee that (assure you that) any of your orders will be given our best attention

Yours sincerely

Practice 3

The Vietnam national Sundries Import and Export Corporation

36 Ba Trieu Street, Hanoi, Vietnam Tel: Fax: Email:

Your ref: 17 August 20

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 firm until 3 September our

badminton bats on the following terms and

conditions:

1 Commodity: VB 50MT badminton bats

2.Specification: as per enclosed catalogue No

22/95VS

Practice 3

4 Price: USD2.00 per piece FOB Haiphong port

including packing

5 Packing: in export customary packing

6 Marking: upon buyer’s instructions

7 Delivery: in one lot in October 20…

8 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.

Practice 3

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

of stock However, we would offer you Model VS

45MH 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 conditions

satisfactory We are looking forward to your order soon.

Yours sincerely

Nguyen Thanh

Export Manager