JINAR (LAZAR)ELENA CIG ID II

UNIT FOUR
ORDERS

4.4.1
Placing an order: covering letter
This letter follows on from the correspondence at 2.3.4 and 3.3.5. F. Lynch & Co. have decided
to place an order with Satex S.p.A. and are sending a covering letter with the form.

F. Lynch & Co. Ltd.

(Head Office), Nesson House, Newell Street, Birmingham B3 3EL
Telephone No.: 021 236 6571Fax: 021 2368592Telex: 341641

Satex S.p.A Your ref: D/ 1439

Via di Pietra Papa Our ref:ORDER DR4316
00146 Roma 9 March 2005
ITALY

Attn. Mr D. Causio Dear Mr Causio,

Please find enclosed our order, No. DR4316, for men's and boys' sweaters in assorted sizes, colours, and
designs.

We have decided to accept the 15% trade discount you offered and terms of payment viz. documents against
payment, but would like these terms reviewed in the near future.

Would you please send the shipping documents and your sight draft to Northminster Bank (City Branch),
Deal Street, Birmingham B3 1SQ.

If you do not have any of the listed items in stock, please do not send substitutes in their place.

We would appreciate delivery within the next six weeks, and look forward to your acknowledgement. Yours

sincerely,
Lionel Crane

Lionel Crane Chief Buyer

Enc. Order form No. DR4316
 Questions

1. In the letter at 3.3.4 Lynch & Co. said they were likely to order over 500 sweaters, but
their actual order is only for 150. What might be the reason for this?
I assume due to the fact that neither his percentage level of trade discount and his payment
method wasn’t accepted from beginning. They found the perfect way to start doing business
together .

2 .How will Lynch & Co. pay?

Mr. Crane (Lynch & co.) accepted the payment method which Satex S.P.A. is using which is
– payment at sight draft, cash against documents.

3 .How soon do they want the sweaters?

They want the sweaters delivered within the next six weeks.

4 .If the sweaters they have ordered are out of stock, would they accept substitutes?

If the ordered items are not in stock, they clearly wrote that they don’t accept any substitute to be
sent in the place of their ordered items.