Chapter 5
Quotations, Offers and Counter-Offers
Section 1 Introduction
Section 2 Specimen letters
Section 3 Useful Expressions (Self study after class)
Section 4 Guide to Writing
Section 5 Exercises
Section 1 Introduction
Key terms to grasp
1. A quotation or quote (报价) is a promise to supply goods or services on the terms stated, including essential information：e.g. names of the goods, quantity, specifications or types, terms of sale, packing, time of shipment, and terms of payment (Note: A quotation or quote is legally non-binding, similar to non-firm offer)
2. An offer (报盘) means submitting or furnishing (提供) details including prices, quantity, date of delivery, packaging, etc. Or, according to the United Nations Convention on Contracts for the International Sale of Goods, a proposal for concluding a contract addressed to one or more specific persons constitutes an offer if it is sufficiently definite and indicates the intention of the offer to be bound in case of acceptance. (A firm offer is legally binding )
3. firm and non-firm offers
a firm offer (实盘) is binding on the party offering if the offer is accepted by the offeree (受盘人).
a non-firm offer (虚盘) is not binding on the offeror (= offerer, 发盘人).
A counter-offer (还盘) means either the offeree proposes a new set of terms for the transaction or he makes a conditional acceptance by making actual, material changes in the offer.
Section 2 Specimen Documents
Specimen 1: Quotation
Dear Mr. Hawking,
We have received your enquiry of 12 September about our bedsheets and are pleased to quote as follows:
500 sets @ GBP 9.80 each CIF London Incoterms 2000, including your 2% commission (佣金).
(GBP: Great British Pound, 英镑)
Our latest brochure is enclosed for your reference.
Your early reply would be greatly appreciated.
Yours sincerely
Specimen 2: Quotation
Dear Smith,
Many thanks for your enquiry of 10 October. Here is our quote.
Goods: | Rubber hammers as per attached specification |
Quantity: | 2,000 |
Price: | €26.00 per unit FCA ( free carrier ) Manchester International Freight Terminal |
Terms of Sale: | Except where otherwise specified, this quotation is governed by INCOTERMS 2010 |
Packing: | Each unit carton packed (in extra strong fibre board containers, 20 per container) |
Delivery (lead time): | 12 weeks from receipt of an acceptable order. |
Terms of Payment: | Cash against documents by means of a Sight Bill of Exchange (即期汇票) presented through Chase Manhattan Bank, New York |
We hope for your initial order.
Yours sincerely
Specimen 3: A firm offer by a manufacturer in reply to a client’s inquiry
Jubilee (庆典) Brand Bicycles
Thank you for your letter of 3 August 2012, inquiring about our Jubilee Brand bicycles.
We are exporting bicycles of many makes (= brands), among which the Jubilee Brand is the most famous. Our products are in great demand and enjoy high sales due to their light weight, good quality and reasonable price.
As requested, we are quoting as below:
20″ Men’s Style | @ US $27/unit |
20″ Women’s Style | @ US $29/unit |
26″ Men’s Style | @ US $30/unit |
26″ Women’s Style | @ US $32/unit |
Payment | confirmed, irrevocable sight L/C |
Shipment | within three weeks of receiving the L/C |
20″ Men’s Style | @ US $27/unit |
20″ Women’s Style | @ US $29/unit |
26″ Men’s Style | @ US $30/unit |
26″ Women’s Style | @ US $32/unit |
Payment | confirmed, irrevocable sight L/C |
Shipment | within three weeks of receiving the L/C |
The above prices are understood to be on CIF Karachi (卡拉奇) basis net. Please note that we do not allow any commission, but a discount of 4% will be granted if the quantity for each specification is more than 1000 units.
The above offer is firm, subject to your reply reaching us by 15 August 2012.
We look forward to receiving your order.
Yours sincerely
(signature)
Qingdao Bicycles Imp. & Exp. Co
