Sesson 5 Offers and Quotations, counter-offers.pptVIP

Quotations and Offers Offer An indication by one person to another of their willingness to contract on certain terms without further negotiations Firm offer: a promise to sell goods at a stated price, usually within a stated period of time Non-firm offer: made without engagement Quotation A quotation is a promise to supply goods on the terms stated. It is not legally binding as a firm offer if the seller later decides not to sell. But when the quotation contains the words “for acceptance within…days” or similar qualifying words, it constitutes an offer. Contents should be included (p65-73) 1. An expression of thanks for the inquiry 2. A statement or clear indication of what the prices cover, 3. An undertaking as to the date of delivery or time of shipment 4. The period for which the offer or quotation is valid 5. Favorable comments on the goods being offered 6. A supplementary short paragraph to draw the customer’s attention to the other products available for supply 7. An expression of hope that the offer or quotation will be accepted. Eg. 1. Non-firm offer Dear Mr. Smith, Non-firm offer for Green Beans We thank you for your enquiry of July 11, from which we note with pleasure that you wish to have an offer from us for 50 metric tons of Green Beans, for shipment to Singapore. In reply, we are making, subject to our final confirmation: “50 metric tons of Bebei Green Beans, grad A, 2009 crop, at USD xxx per metric ton CIF2% Singapore, for shipment in September with transshipement at Hong Kong. Other terms and conditions are same as usual, with the exception of insurance which will cover All Risks and War Risk for 110% of the total invoice value.” We look forwad to your early reply. Yours truly, Eg. 2. Firm offer Dear Mrs. Quinn, Firm offer for Soybeans, Grade A We thank you for your enquiry of May 15 for Soybeans, grade A, 2010 crop. In reply, we make you a firm offer for 30 metric tons for July shipment at USDxxx per metric ton, DEQ Hambury. We trust you