Commercial Correspondence

Unit 3

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.

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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, and 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.
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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
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 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

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 Main message

4. Prices
Price: £110.00 per unit CIF Hai Phong including
packing
5 elements:
1) Currency: £/ $/ GBP/ USD/ VND
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
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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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 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

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 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
acceptance (60 D/S)
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 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)

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 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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 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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 Closing

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.
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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.

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 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.
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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
latest.
9. Regarding (With regard to) terms of payments, we
suggest (stress) that it should be made by an
irrevocable letter of credit.

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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.

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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:

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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
to) the shipment.

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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

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Practice 3
The Vietnam national Sundries Import and Export Corporation
36 Ba Trieu Street, Hanoi, Vietnam
Tel: Fax: Email:
Your ref: 17 August 20__
Our ref: NT/123
24 August 20__
Mr John Smith
M.D. Edward and Co., Ltd
Finewell House
8 Finsbury Square
London EC2 
England
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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
3.Quantity: 500 pairs
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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.
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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
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