Commercial Correspondence

◼ Offers and
◼ Cover Letters of Offers

Faculty of English for Special Purposes

Commercial Correspondence
 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.

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 Types of offers

Firm offer
Also called Quotation with qualifying
statements
Free offer (offer without engagement)
Also called Quotation

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 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
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 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
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 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.

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 Parts of an offer

1. Opening
Express thanks for the enquiry and/or
pleasure in offering
2. Main message
Mention at least 7 terms and conditions
3. Closing
Express hope for orders and future
business
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 Opening

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.

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 Opening

Firm offer:
• We thank you for… and are happy to offer
firm until 25 March 20__ on the terms and
conditions as follows.
• 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. Faculty of English for Special Purposes
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 Opening

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 …
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 Main message

Mention at least 7 terms and conditions:

1. Name of the goods
2. Quality and specification
3. Quantity
4. Details of prices
5. Packing and marking
6. Delivery
7. Terms of payment
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 Main message

More terms and conditions with machines :

8. Technical documents
9. Warranty or guarantee
Others:
• Discounts
• Offering items not asked for

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 Main message

1. Name of the goods/commodity

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 Faculty of English for Special Purposes
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 Main message

2. Quality and specifications

• 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 )

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 Main message

4. Prices
Price: £110.00 per unit CIF Hai Phong port including
packing
5 elements:
1) Currency: £/ $/ GBP/ USD/ VND (before amount)
2) Amount: 110.00
3) Unit price: per unit/ per 1,000 units/ per ton
4) Terms of price: CIF Hai Phong port
5) Including/excluding packing Faculty of English for Special Purposes
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 Main message

4. Prices
INCOTERMS: 4 groups
▪ Group C (CFR, CIF, CPT, and CIP)
▪ Group D (DAF, DES, DEQ, DDP, and DDU)
▪ Group E (EXW)
▪ Group F (FCA, FAS, and FOB)
Others:
▪ Carriage Paid (C/P): charges paid by the sender
▪ Carriage Forward (C/F): charges paid by the receiver
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 Main message

4. Prices
INCOTERMS
• £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)

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 Main message

5. Packing and marking

• Packing: in export customary packing
• Packing: in seaworthy cartons
marked/numbered 1-6
• Packing: in seaworthy wooden cases for
long voyage
• Marking: upon the buyer’s instructions

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- Order No:
- Name of shipper:
- Name of consignee:
- Case No:
- Net weight:
- Gross weight:
- Measurement:

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Commercial Correspondence
 Marking

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 Main message

6. Delivery
• Delivery: in one lot/ shipment on 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
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 Delivery: in one shipment (lot) in May
20__
Transshipment is not allowed
Partial shipment is not allowed

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Commercial Correspondence
 Main message

7. Methods of payment
• 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.
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Documents required:
- Commercial invoice
- Full set Bill of lading
- Packing list
- Weight list
- Inspection certificate
- Certificate of origin
- Insurance Policy

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Commercial Correspondence
 Main message

8. Technical documents
• Two copies of user’s manual to be
supplied with each unit of goods.
9. Warranty/Guarantee
• 12 months from use or 18 months from
despatch/dispatch.

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 What is a cover letter of an offer?

It is a business letter enclosed with an

offer to explain what are not said, make
everything clearer, and add some
favourable comments.

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Offer with covering letter
◼ Refer to the previous correspondence,
enclose offer form
◼ Confirm some terms and conditions:
Payment, discount, delivery, method of
delivery, packing etc.
◼ Make favorable comments on the goods
◼ Hope for reply
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Commercial Correspondence
 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. …

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 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…
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 Prices

• 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 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%.
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 Delivery time

• As there are regular sailings from Liverpool to

New York, we are sure that the consignment
will reach you well within the time you
specified.
• As there is a heavy demand for fans at this
time of year, please allow at least six weeks
for delivery.

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 Discounts

Trade discounts
Quantity discounts
Cash discounts
Loyalty discounts
• The prices quoted are CFR Yokohama, but are
subject to a 20% trade discount off net prices.
We can offer a further 10% discount off net
prices for orders of more than 2,000 units.
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 Discounts

• We allow a 3% cash discount for payment within

one month.
• We do not normally give discounts to private
customers, but because of your long association
with our company we can offer you 12% off the
retail price.
Note: Remember to mention the offer and other
documents you want to enclose at the end of the
letter (Enc.)
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 Closing
◼ Hope for reply
We look forward to receiving your order/
acceptance.
…..to receiving your reply soon.

Enc.

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36 Commercial Correspondence