National Economics University

English for Commerce 2

QUOTATION AND OFFER

MSc. Ha Le
Email: haltt@neu.edu.vn

Economics and Commercial Business Department

School of Trade and International Economics
 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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 Type of offer

- Firm offer: also called Quotation with

qualifying statement

- Free offer (offer without engagement):

also called Quotation

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 Type of offer

§ Without qualifying statements, providing

negotiable terms by using adverbs
“normally” or “usually”, or by asking the
customer to confirm.
§ 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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I. QUOTATIONS
What is a quotation?

- A quotation is a promise to supply goods

on the terms stated.
- A quotation is not an offer in legal sense
How to write a quotation

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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How to write a quotation
1. Opening:
- Acknowledge the enquiry by thanking the
customer for their interests in your products.
• 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.
How to write a quotation

- Details of prices including what the prices

cover (e.g. packing, freight, insurance, FOB,
CIF…)
E.g. The price of this model is $5200 at today’s
rate of exchange.
- Discounts (quantity discount or trade
discount)
E.g. We allow a 15% cash discount for payment
within one month
 How to write a quotation

- Terms of payment
- An undertaking as to date of delivery
E.g. We are willing to consider open account
facilities if you can provide the necessary
bank references.
- The period for which the quotation is valid.
- An expression of hope that the quotation
will be accepted.
E.g. We look forward very much to receiving
your order.
Quotation in tabulated form
- Information is presented in a clear way and
easily understood
- Avoid missing essential information
- Helpful when there are many items
- The content of a tabulated quotation is the
same as the one to a normal enquiry
- It must be sent with a covering letter
Covering letters

The content of a covering letter:

- Express thanks for the enquiry
- Make favorable comments on the goods
- Take the chance to draw attention to other
products likely to interest the buyer
- Hope for an order.
Examples of quotations

1. We were pleased to receive your enquiry dated 21 April

asking about our leather products and terms of trade.
2. Thank you for your enquiry and we were pleased to hear
that you liked our range of leather shoes.
3. We can confirm that there would certainly be no trouble
in supplying you from our wide selection of footwear.
4. We can offer you a quantity discount, which would be 5%
off net prices for orders of over $2000.
5. The usual allowance for a trade discount in Italy is 15%.
6. We always deal on payment by sight draft, cash against
documents.
7. On receipt of a cheque for the amount quoted, we will
send the article by registered mail.
8. Enclosed you will find our summer catalogue and price list
quoting prices CIF London
9. We hope very much that we can reach agreement on the
terms quoted.
10. Thank you for your interest. We look forward to hearing
from you.
II. OFFERS
 II. OFFERS
1. The importance of an offer
- An offer not only tells your customer whether you can
provide the goods or services he/she has asked about,
but also indicates what sort of firm you are
- - Avoid using ancient or insincere, desperate expressions
like:
+ We hasten to reply to your esteemed enquiry…
+ We deeply regret that we cannot supply you with…
- For new customers, state clearly what your product is,
why he should buy it, how much it will cost and what
concessions you are offering.
 2. How to write an offer

2.1. Opening: Thank for the enquiry and express

pleasure to offer
E.g.+ We thank you for your enquiry dated 25 April
2010 for agricultural machines and are pleased
to offer you the goods on the following terms
and conditions:
• 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.
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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2.2. Main body
1. Commodity: Name of the goods (with something
difficult to explain, give description)
2. Quality and Specifications
e.g. As per enclosed technical description
3. Quantity: 1000 units
4. Price: including terms of delivery and packing…
e.g. GBP 100 per unit CIF Haiphong
5. Packing and marking
e.g. in seaworthy crates numbered 1-6
6. Delivery
e.g. in one lot in Mid May, 2010
7. Terms of payment
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 body

1. Name of the goods/commodity

woolen jackets, style J-21
Style J-21 woolen jackets
L-21 woolen jackets/ woolen jackets L-21

Fridge, model F234

Model F234 fridge
F234 fridge
Fridge F234 21
 Main body

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 …
100 tons/ metric tons/ MT tons

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 Main body
4. Prices
Price: £50.00 per unit CIF Hai Phong including
packing
5 elements:
1) Currency: £/ $/ GBP/ USD/ VND
2) Amount: 50.00
3) Unit price: per unit/ per 1,000 units/ per
ton
4) Terms of price: CIF Hai Phong
5) Including/excluding packing 23
 Main body
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 24
 Main body

4. Prices
INCOTERMS
• £10,000.00 CIF Hamburg (the price includes
all delivery costs to Hamburg– cost,
insurance and freight)
• USD 20,000.00 FOB Hai Phong (the price
includes delivery costs to when the goods
are on board ship at Hai Phong)

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 Main body

5. Packing and marking

• Packing: in export customary packing
• Packing: in container
marked/numbered 1-6
• Packing: in seaworthy wooden cases for
long voyage
• Marking: upon the buyer’s instructions

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 Main body

6. Delivery
• Delivery: in one lot/ shipment in
December 08, 20__
• Time of delivery: for immediate
shipment/ dispatched within 6 months
from receipt of your formal order.
• Transshipment: allowed/ not allowed

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 Main body
7. Terms of payment
§ Bank draft/ banker’s draft
§ Bank transfer (mail, telegraphic)
§ Bill of exchange (sight draft or term draft)
§ 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) 28
 Main body

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 body

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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 2.3. Closing
- Encourage customers for further
transactions by offering special discount,
favorable terms….
e.g. We feel sure that our goods are good
in quality, attractive in design and
competitive in price.
- Look forward to your early order.
 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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3. Covering letters with
offers in printed form
Printed form offers should be sent with a
covering letter that:
1. Expresses thanks for the enquiry
2. Expresses pleasure in offering
3. Makes favorable comments on the goods,
or other terms
4. Draws attention to other products likely to
interest the buyer
5. Hopes for an order
4. Quotations and offers
not accepted
The letter of rejection should cover the
following points:
- Thank the seller for his offer
- Express regret at inability to accept
- State reasons for non-acceptance
- Make a counter-offer if, in the circumstances,
it is appropriate
- Suggest that there may be other opportunities
to do business together
Points to remember
u In salutations, use the customer’s name rather than
Dear Sir/ Madam.
u Let the customer know early in the letter whether or
not you can help them.
u Make sure that you have supplied all the information
you think will help your customer including if relevant
catalogues and price lists.
u Thank the customer for contacting you, and encourage
further enquiries.
u When giving a customer a quotation, in addition to the
price quote transport and insurance costs, any
discounts, method of payment, and delivery date.
u Do not promise a delivery date that you cannot keep.
 Exercise: Translation
1. Chúng tôi đã nhận được và xin cảm ơn thư của
các ngài đề ngày 1 tháng 12 hỏi mua Apatit Lào
Cai (xi măng Hoàng Thạch, dụng cụ nhà bếp, ghế
mây, thảm len các loại…)
2. Trả lời thư hỏi mua lạc hộp, dứa hộp và dưa chuột
hộp của các ngài đề ngày 20/10, chúng tôi rất vui
mừng chào bán ba mặt hàng này với những điều
kiện hết sức có lợi.
3. Chúng tôi rất vui mừng nhận được thư của các
ngài đề ngày 14/11 hỏi mua dầu hồi và dầu
tùng, và theo yêu cầu, chúng tôi đã gửi mẫu
qua bưu điện.
4. Chúng tôi xin cảm ơn thư của các ngài đề ngày 8
tháng 10 hỏi mua Vaseline và rất vui mừng chào
bán cố định cho các ngài 1000 tấn, giá mỗi tấn CIF
là… đô la, chấp nhận trong vòng 10 ngày.
5. Chúng tôi muốn mua 10 máy bơm X30 và 10
máy bơm loại K-25, với số lượng này, các ngài có
cho chúng tôi được hưởng chiết khấu 5% không?
6. Rất tiếc chúng tôi không thể chiết khấu cho
những đơn hàng mà số lượng mua nhỏ như thế.
Nếu ngài vui lòng mua tổng số là 30 máy thì chúng
tôi sẽ sẵn sàng chiết khấu cho các ngài 2,5%.
7. Chúng tôi muốn các ngài giao hàng cho chúng tôi
càng sớm càng tốt, nhưng không được chậm quá 1/12.
8. Vậy chúng tôi sẽ cố gắng hết sức để giao hàng
cho các ngài vào trung tuần tháng 11 hoặc chậm
nhất là vào cuối tháng đó.
9. Về điều kiện thanh toán, chúng tôi đề nghị tiến
hành bằng tín dụng thư không thể huỷ ngang.
10. Tín dụng thư này do chúng tôi mở qua Ngân
hàng Ngoại thương Việt Nam vào tài khoản của
Ngân hàng thương mại Bắc Âu cho các ngài được
hưởng chậm nhất là 15 ngày trước chuyến hàng.
11. Chúng tôi sẽ đánh giá cao nếu các ngài giao
ngay 1/2 số lượng chúng tôi đặt mua và số còn lại
sẽ giao tiếp sau đó hai tuần.