CHAPTER 3: OFFER

A. OFFER
Overview
1. Definition
An offer is a business letter offering to sell goods on stated terms and conditions Offer –
often from the seller

2. Types of offers
Free offer Firm offer
Quotation – offer without engagement Quotation with qualifying statements
- Made to many buyers - Made to one buyer
- With supplier’s sales confirmation - Without sales confirmation (when the
(only made when the supplier send the buyer accept, the contract is made)
sales confirmation)
Not legally binding even when
accepted by the buyer.
- No time validity - With time validity
Example of words using in free offer Example of time validity:
“Normally we allow a 23% trade
 For acceptance within 14 days.
discount off net prices with payment on a
documents against payment basis. Please  The prices quoted will apply only
to orders received on or before 31
let us know if this arrangement is
March
satisfactory.”

3. Parts of an offer
1. Opening: Thanks for the enquiry and/or pleasure in offering
2. Main message: Mention at least 7 conditions and terms
Name of the goods
Quality and specification
Quantity
Details of prices
Packing and marking
Delivery
Terms of payment
 3. Closing: Hope for ordes and future business

How to write an offer

I. OPENING
 Express your thank to the enquiry and pleasure of offering:
1. FREE OFFER
We thank you for your enquiry dated/of ….. asking for our ….We are glad/
happy/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.

2. FIRM OFFER
We thank you for your enquiry dated ….. asking for our ….We take great pleasure in
offering firm/are happy to offer firm until…. on the following terms and conditions:
We thank you … to make you an offer which is valid until … on the following terms
and conditions
We are pleased to make you a firm offer, subject to acceptance within 21 days, for 10
machines …

 Useful expressions
Thanks - We are pleased to make you an offer
which is valid until …
- We are pleased to offer firm until …
Time validity - This offer is firm for … days
- This offer remains open for acceptance
within ...
- This offer is subjected to acceptance
within…

II. MESSAGE
 Mention at least 7 terms and conditions:

1. NAME OF THE COMMODITY/ GOODS:

Example
- woolen sweaters, style L-29 - washing machines, model TD236
- Style L-29 woolen sweaters - Model TD236 washing machines
- L-29 woolen sweaters - TD236 washing machines
/ woolen sweaters L-29 / washing machines TD236

2. QUALITY AND SPECIFICATIONS

Quality and specification: as per sample
Quality: as per enclosed technical description
Specification: as per enclosed catalogue No 234 LD

3. QUANTITY
1000 tons/ MT tons (metric ton)/ pcs (pieces)/ sets/ units/ items

4. PRICE
Price: unit price ….. including packing, total price is ….
E.g: Price: £110.00 per unit CIF Hai Phong including packing

NOTES

5 1 Currency: £/ $/ GBP/ USD/ VND

elements
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 packing

Incotems  Group C (CFR, CIF, CPT, and CIP)

<4 groups>  Group D (DAF, DES, DEQ, DDP, and DDU)
 Group E (EXW)
 Group F (FCA, FAS, and FOB)
E.g:
 - £30,000.00 CIF Hong Kong (the price includes all delivery costs to
Hong Kong – cost, insurance and freight)
- USD35,000.00 FOB Rotterdam (the price includes delivery costs to
when the goods are on board ship at Rotterdam)

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

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

5. PACKING
 Writing style
Packing: in customary export cartons
in export customary packing
in seaworthy cartons markedd/numbered -6
in seaworthy wooden cases for long voyage
Marking: Upon the buyer’s instruction

6. DELIVERY
- Delivery: one shipment, date…./ in one lot in Dec 2008
- For immediate shipment
- Shipment: within 3 – 4 weeks of receiving order
E.g: The machines can be dispatched within 6 months from receipt of your formal order.

7. TERMS OF PAYMENT
 Useful vocabulary
1 Bank draft/ banker’s draft
2 Bank transfer (mail, telegraphic)
3 Bill of exchange (sight draft or term draft) Hối phiếu
4 Sight draft: a bill of exchange payable Hối phiếu trả ngay
immediately upon acceptance (accept to
pay)
 5 Draft at 60 days (after) sight: payable We would be glad if you would
within 60 days of acceptance (60 D/S) agree to draw on us at 30 D/S (at 30
days) for the amount of…
6 Cheque
7 Letter of credit (L/C)
8 At sight/ at … day’s sight
9 Revocable L/C: that can be cancelled
10 Irrevocable L/C: that cannot be cancelled Thư tín dụng không hủy ngay
11 Cash on delivery (COD)
12 Documentary collection  Documents against payment
(D/P)
 Documents against acceptance
(D/A)

 Sample:
Payment is (to be made/ effected) in (USD/ US dollars/ pounds sterling) by an
irrevocable letter of credit (L/C) at (30 days’) sight, (to be) opened (at/ through/ by/
with) the Bank for Foreign Trade of Vietnam (Vietcombank, Vietnam), 15 days (prior to/
before) shipment, valid for 15 days to the account of Royal Bank, London, (in our
favour/ in favour of the seller) for the total value of the goods to be shipped.

8. TECHNICAL DOCUMENTS
E.g: Two copies of user’s manual to be supplied with each unit of goods.

9. WARRANTY OR GUARANTEE
E.g: 12 months from use or 18 months from despatch/dispatch.

 Other
- Discounts
- Offering items not asked for
One - sentence offer:
We are pleased to offer 200 MT of ABC as per sample to be sent at $ 1,200 per unit CIF
Sedney including seaworth packing for delivery in one lot in Sept. 2008 and for payment
by L/C as usual.

Offering substitute

For ABC1, we are sorry we have no longer produced this for 3 months now, but in their
place we can offer ABC2 of similar quality and at somewhat lower prices and on almost
the same terms and conditions as those for ABC1.
Comment on the terms and conditions of the offer
You will see that our goods are excellent in quality, reasonable/competitive in price and
attractive in design/style.

III. CLOSING
Express your hope for order or future business
We assure you that any of your orders will be given our best attention.
We hope very much that we can reach agreement on the terms quoted
Thank you for your interest. We look forward to hearing from you soon.
We look forward to your early order/ opportunities of doing business with you.

Sample letter

The Vietnam National Sundries Import and Export Corporation

36 Ba Trieu Street, Hanoi
Cable address: TOCONTAP HANOI - Tel. 84.4.522636 - Fax: 84.4.252636
M.D. Edward and Co., Ltd.
06 June 20...
Finewell House
8 Finsbury Square
London EC2
England

Dear Mr. ...,

Re: Badminton rackets and table tennis bats

We thank you very much for your inquiry of 1 June 20... for our badminton rackets and
table tennis bats and are pleased to offer firm until 28 June 20... on the following terms
and conditions:
• Commodity: Badminton rackets VB50MT
• Specifications: as per enclosed catalogue No. 22/95VB
• Quantity: as required and specified in your order
• Price: USD2 per unit FOB Haiphong including packing
• Packing: in export customary packing
• Delivery: in one lot in August 20...
• Payment: by an irrevocable Letter of Credit to the account of the Bank for Foreign
Trade of Vietnam in favour of the seller for the total value of the goods to be
shipped.

As for the table tennis bats, we are sorry that at the present time bats VS44TD are not
available for sale and must ask you to excuse us from sending you a quotation. In their
place, we can offer model VS45MH of similar quality, and on almost the same terms and
conditions as those for badminton rackets VB50MT, at the price of USD8 per unit FOB
Haiphong.

You can rest assured on the high quality of our products and our perfect execution of
your order. If your order is for 4,000 units or more we will allow a special discount of
0.3%.
We look forward to hearing from you soon.

Yours sincerely,
(signed)
Nguyen Thanh
Export Manager
Encl: Catalogue No. 22/95VB

We offer/allow (a cash discount of 15% on/ a 15% cash discount for) the payment within
a month

B. COVER LETTER OF OFFER

Overview
A cover letter of an offer is a business letter enclosed with an offer to explain what are
not said, make everything clearer, and add some favourable comments.
How to write a cover letter of an offer
I. OPENING
 Express thanks for the enquiry 
 Express pleasure in enclosing the offer
We thank you for your enquiry of … for … and are pleased to enclose our offer for the
said goods.
… and take pleasure in enclosing our offer for…
… and please find enclosed our firm offer No. …

II. MAIN MESSAGE

 Repeat important terms 
We would like to make clear the following points.
We would like to draw your attention to the following points.
We would like to emphasize the following terms and conditions.

 Give explanation, comments or more information: prices, delivery, samples,

discounts, other goods…
The net price of this article is £100.00, to which VAT must
be added at 17.5%, marking a gross price of £117.50.
We can quote you a gross price, inclusive of delivery
charges, of £347.50 per 100 items. These goods are exempt
Price from VAT.
We can offer you a price of £5,200.00 per engine, firm 21
days, after which the price will be subject to an increase of
5%.
As there are regular sailings from Liverpool to New York, we
are sure that the consignment will reach you well within the
Delivery time
time you specified.
As there is a heavy demand for fans at this time of year,
please allow at least six weeks for delivery.
The prices quoted are CFR Yokohama, but are subject to a
20% trade discount off net prices. We can offer a further 10%
Discounts
discount off net prices for orders of more than 2,000 units.
 Trade discounts We allow a 3% cash discount for payment within one month.
 Quantity
discounts We do not normally give discounts to private customers, but
 Cash discounts because of your long association with our company we can
 Loyalty offer you 12% off the retail price.
discounts

 Note: Remember to mention the offer and other documents you want to enclose at
the end of the letter (Enc.)