Commercial Correspondence

Unit 4

 Offers and
 Cover Letters of Offers

Faculty of English for Specific 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 Specific Purposes
9 Commercial Correspondence
 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 Specific Purposes
13 Commercial Correspondence
 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 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 Specific 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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 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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 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
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 a quantity.
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

Enc. Specification

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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: 16
June 20__
Our ref: NT/123
19 June 20__
Mr John Smith
M.D. Edward and Co., Ltd
Finewell House
8 Finsbury Square
London EC2
England
33
Faculty of English for Specific Purposes
Commercial Correspondence
Practice 3
Dear Mr Smith
We thank you for your enquiry of 16 June
20__ (asking) for our table tennis bats, model
VS 44TD, and badminton bats, model VB
50MT. We would like to offer firm until 28
June our badminton bats on the following
terms and conditions:
1. Commodity: VB 50MT badminton bats

2.Specification: as per enclosed catalogue No.

22/95VS
3.34Quantity: 500 pairs Faculty of English for Specific Purposes
Commercial Correspondence
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 August 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
35
value of the goods to be shipped.
Faculty of English for Specific Purposes
Commercial Correspondence
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
Enc. Catalogue No. 22/95VS
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