Offer
I. Definition:
1 submit orfurnish details including prices, conditions and other related items need for acontract.
2 according to the United Nations Conventionon Contracts for the International Sales of Goods, a Proposal for concluding acontract addressed to one or more specific persons constitutes an offer if itis of the offer or to be bound in case sufficiently definite and indicates theintention of acceptance.
II. Two Types of Offer
1. Firm offer
a. Irrevocable, written, andsigned offer regarding the sale or purchase of specified goods or services atspecified prices, and valid for a specified period. If no closing or expirationdate is specified, the offer is normally considered to be open for 30 daysafter its presentation. Also called confirmed offer.
b. a binding written offerto buy or sell that cannot be revoked for a stipulated period of time or for areasonable time that in no event exceeds three months
c. A Firm Offer is an offermade to a person or entity agreeing todo any action or non-action on the acceptance of such offer, which cannot berevoked or withdrawn within the period specified in the offer
2. Non-firm Offer
a. An non-firm offer is anexpression of wishes made by the offeror to do business with the offereeaccording to certain transaction terms with some reservation,
e.g “subject toour final confirmation”,
“we offer, subject to good being unsold”,
“we offer,subject to prior sale”,
“only for reference”, etc.
b. It is madewithout engagement, and the details of the offer may change in certainsituations, the offeror will not be bound by the offer.
c. non-firm offercan’t be accepted just an inducement to busness, usually made by sendingcatalogues, pricelists, proforma invoice and quoations and so on。It can be withdrawn anytimebefore the offeree accepts it.
3 . Contents of firm offer
a.Name of commodities, qualityand specification
b.Details of prices, termsof trade, discounts, and terms of payment
c.Packing, date of delivery, port of shipment
d.The period for which theoffer valid
A firm offer shall stipulate an expiry date. And the offeror is subject to obligation to theoffer within validity In valid in case that the offeree
a. accept it not within validity
b. refuse or later it
c. make a counter-offer toit
4. Difference Between Firm Offer and Non-fimr Offer
a. complete and clear terms
b. positive and unconditionalwith no reservation clause(保留条款) indicating theprice, specification, payment, packing ,quality,etc.
c. clear term of validity(有效期)
III. Responding to Enquiries
1. Structure ofPositive Answer
Part I. a polite, thankful beginning mentioning thereceipt of the letter
Part II. a fewwords emphasizing the advantage of the product; or details about the term andconditions like name of commodities, quality, quantity, and specifications,price terms, discounts, commission and terms of payment, packing and date ofdelivery, the validity of the offer (firm offer)
Part III a sincere andcourteous conclusion to induce an action out of the potential customer.
2. Structure ofPositive Answer
Part I. Athankful beginning mention the enquiry.
Part II.Expressing sorry for the enquiry and reasonable explanation
Part III. Ending with offering other chances of cooperation
