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UnitFour OffersandCounter offers LearningObjectives Tounderstandconditionsthananofferandcounter offershallpossess TounderstandconditionsofacceptanceTolearnusualstepsformakinganofferandacounter offer 1 OffersAnofferisareplymadebyasellertotheenquirybyabuyer Ithasalsobeenthepracticethatasellervoluntarilymakesanoffertohisregularcustomersornewcustomerswhomayhaveinterestsinhisproductswithoutwaitingforanenquiry Inpracticalinternationalbusiness therearetwokindsofoffers firmoffernon firmoffer Afirmofferisaproposalforconcludingacontractonthetermsandconditionsstated Firmoffersaremadewhenasellerpromisestosellgoodsatastatedpriceandwithinastatedperiodoftime Usuallyitismadebyaselleruponreceiptofanenquiryfromabuyer Whenabuyerinitiatesanoffertoaseller itiscalledabid Anoffercreatesapowerofacceptancepermittingtheoffereebyacceptingtheoffer totransformtheofferor spromiseintoacontractualobligation Thus onceithasbeenaccepteditcannotbewithdrawn Afirmofferwillincludethefollowing Anexpressionofthanksfortheenquiry ifany Nameofcommodities quality quantity andspecifications Detailsofprices termsofpayment commissions ordiscounts ifany Packinganddateofdelivery Thevalidityoftheoffer Anexpressionofhopethattheofferwillbeaccepted optional 2 Counter offers Whenanoffereedoesnotagreetothetermsandconditionsoftheoffercompletelyandhewantstoamendtheoffer acounteroffercanbemade Acounterofferisvirtuallyapartialrejectionoftheoriginalofferandalsoacounterproposalinitiatedbytheofferee Theoffereemayshowdisagreementtotheprice orpacking shipmentandstatehisowntermsinstead Suchalterations nomatterhowslightlytheymayappeartobe signifythatbusinesshastobenegotiatedonarenewedbasis Theoriginaloffererorthesellernowbecomestheoffereeandhehasthefullrightofacceptanceorrefusal Inthelattercase hemaymakeanothercounterofferofhisown Thisprocesscangoonformanyaroundtillbusinessisfinalizedorcalledoff Whenanoffereerejectsanoffer heshouldwritetothanktheoffererandexplainthereasonfortherejection Nottodosowouldshowalackofcourtesy GuidelinesforWriting 1 AletterofofferorquotationAletterofofferorquotationisusuallycomposedofthefollowingthreeparts 1 Anexpressionofthanksfortheenquiry ifany 2 Detailsofthegoods prices discountsorcommissions termsofpayment thetimeofdelivery thetimeperiodinwhichtheofferisvalid 3 Anexpressionoftheofferwillbeaccepted 2 Aletterofcounter offerAletterofcounter offeristobewritten whichshouldinclude 1 Anexpressionofthanksfortheoffer 2 Reasonforinabilitytoaccepttheoffer 3 Acounter offer yourownideaincludingtermsandconditionsacceptable etc 4 Awishofthecounter offerwillbeaccepted urgingthereadertoacceptearly 5 Awishofotherbusinessopportunitiesinfutureifnecessary 3 Aletterofre counterofferAletterofre counteroffer whichshouldcoverthefollowingparticulars 1 Anexpressionofthanksforacounteroffer 2 Statingwhatshallbeamended 3 Awishofafavorablereply SpecimenLetter 1 AnOfferbasedonEnquiry SHENZHENNEWCENTURYTRADINGCO LTDRm818 3BuildingEase SEGScience TechnologyParkHuajiangNorthRoad Shenzhen China518028E mail Helen Tel 86 755 30113998September30 2007TheNILETRADEINGCO LTD161PyramidStreetAlexandria EgyptDearSirs ReplyingtoyourenquiryofMay13forasupplyofourcrockery wearepleasedtoquoteasfollows Teacups 56perhundredTeaPlates 40perhundredTeapot 1 litre 3each Thesepricesincludepackinganddelivery butcratesarechargedfor withanallowancefortheirreturningoodcondition Wecandeliverfromstockandwillallowyouadiscountof5 butonlyontermsorderedinquantitiesof500ormore Inaddition therewouldbeacashdiscountof2 ontotalcostifpaymentweremadewithintwomonthsfromdateofinvoice Wehopeyouwillfindthesetermssatisfactoryandlookforwardtothepleasureofyourorder Yoursfaithfully YaoDa ming SpecimenLetter 2 Non firmOffer GreenPlantsCo Ltd Rm 2808KaiTakComm Centre 317DesVoeuxRoad CentralHongKongTel 00852 63108921E mail greenplants August2008FoodsIndustrialCompany875 9865ShireroadLondon UKDearSirs InreplytoyourletterofMay5 wehavepleasureinoffering subjecttoourfinalconfirmation Ourmainproductsareasfollows Commodity GreenBeansGuangdongOrigin 2007cropQuantity 300metrictonsPrice USD930permetrictonCIFLondonPacking inordinarysecond handgunnybagsShipment inAugust 2008Payment byirrevocableL C payablebydraftatsight Wehopethisofferwillbeofinteresttoyou andlookforwardtohearingfromyousoon Yoursfaithfully RobKennedy SpecimenLetter 3 AFirmOfferforPlushBear March5 2008DearMrs CeliaClemens Re PlushBearItemNo 1003PWethankyouforyourEmailofMarch4 2008 enquiringforthecaptionedgoods Asrequested weofferfirm subjecttoyourreplyreachingherebyMarch18 asfollows PlushBearItemNo 1003Paspersample eachinaplasticbagandtheninabox 30boxestoacartonwithwhiteandbrownequallyassorted UnitPrice USD10 59perdozen CIFSingaporePayment byIrrevocableLetterofCreditQuantity Minimumorder500dozen maximumpresentcapacity1 000dozenamonth Delivery within30daysafterreceiptoftherelativeL C Wehopetheabovewillbeacceptabletoyouandawaityourearlyorder Yoursfaithfully PaulZhou SpecimenLetter 4 ACounter offerforPlushBear 8March2008DearMr Zhou Re PlushBearItemNo 1003PWe vereceivedyourE mailofferof5thMarchforPlushBearItemNo 1003Pwiththanks Allthetermscontainedintheofferareacceptableexcepttheprice Whileappreciatingthequalityofyourcommodity wefindyourpriceonthehighside NowinEurope manysuppliers mainlyfromAsia havecomeintothemarketwithamuchlowerpricethanyours Thechiefsellers worryingabouttheir marketshare areagainloweringtheirprices Suchbeingthecase toacceptyourquotationwouldmeanlittleprofittous However wewouldliketoplaceatrialorderwithyouifyoucouldmakea8 reductioninyourprice Shouldthistransactionprovetobesuccessful we dcertainlyplacemoresubstantialordersonaregularbasis Wehopeyouwillreconsiderthismatterandsendusanewoffer Yourssincerely Mrs CeliaClemens SpecimenLetter 5 Exporter sReplytoaCounter offer March13 2008DearMrs CeliaClemens Re PlushBearItemNo 1003PThankyouforyourfaxofMarch13 Weareindeedsorrythatyoufoundourpricetoohigh Actuallythepriceswequotedyouarenarrowlycalculatedandareveryrealistic AsIamsureyouknow weoperateinahighlycompetitivemarketinwhichwehavebeenforcedtocutourpricestotheminimum Ifitwerenotfortheregularorderswereceivedfromanumberofourcustomers wecould nothavequotedsuchlowprices Webelieveafaircomparisonofqualitybetweenourproductsandthosefromothersourceswillconvinceyouofthereasonablenessofourquotation However inviewofourfuturecooperation wewouldexceptionallygiveyoua3 quantitydiscountifyouorderexceeds8 000dozen Wehopeyouwillacceptourproposalandlookforwardtoyourtrialorder Yourssincerely PaulZhou SpecimenLetter 6 AfirmofferforVelvet July30 2007DearSirs Re VelvetWeareverypleasedtoreceiveyourenquiryofJuly28andconfirmourFaxofthismorning asfollows Fifty fivepoundsperthirty sixyardpieceF O BLiverpoolsubjecttoyourreplyingherewithinoneweek Wemuststressthatthisofferisfirmforoneweekonlybecauseoftheheavydemandforthelimitedsupplyofvelvetinstock Thematerialisofthefinestqualityandwecanassureyouthatsofarasqualitygoesyouhavenothingatalltofearfromthesimilarmaterialsofothermanufacturerseitherinthiscountryorabroad Wefeelsureyouwillrealizethatourquotedpriceisveryreasonable butweareanxioustodowhatwecantohelpyoutoestablishyournewbusinessandarepreparedtoallowyouadiscountof1 Ifyoudecidetotakeadvantageofouroffer kindlyconfirmyouracceptance Yoursfaithfully TonyLiu SpecimenLetter 7 ACounter offerforVelvet August10 2007DearSirs Re VelvetWehavereceivedyourofferdatedJuly30forthecaptionedgoods Thoughweappreciatethequality theofferswehavereceivedfromothersuppliersaremuchlowerthanyours Welikethequalityofyourgoodsandalsothewayinwhichyouhavehandledourenquiryandwould welcometheopportunitytodobusinesswithyou Maywesuggestthatyoucouldperhapsmakea5 allowanceonyourquotedpricethatwouldhelptointroduc

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