[其它课程]chapter_5foreignexchangecontractformation-offeracceptance.ppt

Offer and acceptance 6) Important aspects of efficiency in handling inquires, offers and orders 1. speed 2. clarity Self-study P106 Offer and acceptance Acceptance Definition: an acceptance is a statement made by the offeree indicating assent to an offer. It is at that moment that a contract exists. Requirements for an acceptance 1. In response to an offer. 2. By the right party 3. In absence of material disagreements 4. In effective communication 5. In time 6. By correct methods Read the book! Offer and acceptance Conditions of sale 销售条件 1. right to vary the specifications of the goods from sample. 2. right to increase prices 3. liability not to exceed the value of goods exported. 4. statement of the law to interpret the contract and to appoint arbitrators in case of dispute. Homework Review this chapter Preview Chapter 6 Download the QQ file after class (including that of Chapter 4). THANK YOU！ * 　Example of export:　　A Chinese exporter is selling crude oil at USD20 or CNY124 (USD1=CNY6.2) per barrel. The contract is signed in October and the goods are to be delivered in December. Payment is made in December upon delivery of goods. 1) . Floating exchange rate and choice of contract currency Suppose the exchange rate is higher in December, for example, USD1 =CNY6.4 instead of USD1 =CNY6.2　　If USD is used as the contract currency, then the exporter will be paid USD20/barrel. With USD20, the exporter will get CNY128 at the December’s rate. There is an extra earning of CNY4 (128-124) due to the exchange rate fluctuation. If the contract currency is CNY, the exporter will be paid CNY124/barrel (the contracted price). With CNY124, the exporter will get only USD19.375 at the December’s rate. There is a loss of USD 0.625 (20-19.375) due to the exchange rate fluctuation. Summary Floating exchange rate and the choice of contract currency The above example shows that exporters should