DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : A.Ram Reddy

Designation : Lecturer
Branch : D.C.C.P.
Institute : SRRS Govt. Polytechnic, Sircilla
Year/Semester : IV Semester
Subject : Business Correspondence
Subject Code : CCP-404
Topic : Claims, Complaints and Adjustments
Duration : 50 Minutes
Sub Topic : Claims
Teaching Aids : PPT and animations

CCP404.21 1
 Objectives

Upon completion of this Period, you would be

able to:

 Explain the meaning of a claim

 List the Characteristics of a claim
 Draft a claim

CCP404.21 2
Recap

In the previous period, you have learnt

 Confirmation of order
 Execution of order
 Cancellation of Order

CCP404.21 3
What is claim letter?
 In executing an order, there may be loss to the
buyer
 The Loss may be on account of damage to goods ,
or substantial goods for compensation it is called a
Claim
 In the event of such a Loss, buyer gets right to seek
for compensation
 Such a right is called Claim
 A Letter written to Claim compensation is a Claim
letter
CCP404.21 4
When the claims are made?

The Following are the situations for making

Claims:-
 When the buyers noticed shortcomings
 When the buyers noticed defective goods
 When the buyers noticed that the specifications
of the goods are not as ordered
 When the goods are not supplied on the terms
and conditions agreed upon earlier

CCP404.21 5
Purchasers scrutinize the goods after
receipt of the same in the following
aspects

 Condition of the goods

 Quality of the Goods
 Quantity of the goods
 Whether the goods are supplied as per terms and
 Conditions agreed upon earlier or not
 Specifications of the goods received
 Price of Goods

CCP404.21 6
Purpose of claim letter

 To intimate the shortcoming in the goods

 To claim the shortcomings
 To get compensation from supplier
 To suggest the mode of settlement

CCP404.21 7
Characteristics of the claim letter

 Claim must be genuine

 Claim must be courteous

 Claim must be complete

CCP404.21 8
 Contents of claim letter

 Intimation of the letter of supply of goods

 Supplier should be thanked for the goods supplied
 Reasons for claim
 Method of settlements of claims
 Request for early reply
 Request not to repeat the same in future

CCP404.21 9
Various Methods of settlements
suggested by Customers:-
 The supplier may offer to take back goods
 To replace goods
 To allow discount for shortcomings.
 May ask the supplier to come and inspect the
goods supplied
 Sometimes ,The Loss or short comings may
occur due to negligence of third parity also

CCP404.21 10
Hints for drafting claims

 Make a clear statement of the mistake or claim

 The claim should be specific
 Explain the nature of inconvenience caused
 State steps to rectify the situation
 Appeal to the supplier’s sense of fair play and
pride

CCP404.21 11
Style of writing claim letter
 The complaint should be made politely
 The complaint should be written without
showing signs of anger
 It should be quiet, confident and dignified
 It should respect and get more attention than
excited
 It should not be an agitated one

CCP404.21 12
Model Question

 You have received a consignment of Varnish

from the Sunbeam Paint Works, Poona. You
determine the quality of the Varnish poor.
Write a letter to them to allow 5 % reduction in
the price or to take back goods

CCP404.21 13
Model Claim Letter
Phone:2236765
SHILPA STTEL FURNITURE
Bus Stand Road,
Chowrastha, Siddipet.
Lr.No.14/07. Date:25-12-2007.
To
Mr.M.K.Patel,
Sales Manager,Chitra (Pvt) Limited,
Sarojinidevi Road,
Secunderabad,
Dear Sir,
Sub:-Supply of Varnish of poor quality-reduction of price-Reg.
Ref:-Your Lr.No.CL/3/140=07, dt.20-12-2007.
……..

CCP404.21 14
Model Claim Letter (Answer)
We acknowledge with thanks the receipt of
Varnish on 24-12-2007. We have tested and
found it to be very thick and it requires additional
heating before final use. So, opening the tins and
heating at a time large quantity of Varnish entails
extra expenditure on our part. It will also waste
some of our time.

CCP404.21 15
 A reference to our order will show you that we
specifically ordered for liquid Varnish that can be used
immediately on opening tins. So, we request you to
grant us 5% reduction of the price of the invoice to
make up for the extra heating charges.
On hearing from you, we shall send a check for
the due amount less 5% reduction.
Thank you,
Yours faithfully,
p.p. SHILPA STTEL FURNITURE,
(M.MURTHY)
Proprietor.
CCP404.21 16
Model Question

 You have received a consignment of defective

goods from the LUCKY STAR COMPANY,
Calcutta. The quality of the goods is found very
poor. Write a letter to them to allow 10%
reduction in the price or to replace the goods
with superior goods

CCP404.21 17
 Model Claim Letter
Telegrams:”RADHIKA” Phone: 2234167
RADHIKA STORES
14-7-9/A,
Beach Road,
Visakhapatnam.
Lr.No.RS/12-12/07. Date:1-12-2007.
To
The Manager (Sales),
LUCKY STAR COMPANY,
Calcutta.
Dear Sir,
Sub:- Supply of Goldstar tea boxes-Reg.
Ref:- Your Lr.No.RS/140-12/07, dt.25-11-2007.
……..

CCP404.21 18
 Thank you for prompt supply of 500 one Kg.
Goldstar tea boxes.

We however, regret to inform you that 10

boxes are of a different brand and are of poorer
quality. These ten tea boxes of inferior quality
which cost much less than Goldstar tea do not
have any demand here. At the same time, it will be
impracticable to return them.

CCP404.21 19
 So,please accept the enclosed cheque for
Rs.4,500/- which is less than the agreed price by
10%. In case this proposal is not acceptable to
you, please send us 10 Goldstar tea boxes to
replace these inferior boxes and debit our account
with the balance amount.
Thank you,
Yours faithfully,
for RADHIKA STORES,
(P.NAGABABU)
Proprietor.

CCP404.21 20
Summary

We have discussed about

 Purpose of writing claim letters

 Characteristics of claim letters
 Style of writing claim letters
 Hints for drafting claim letters

CCP404.21 21
Quiz

1. Claim letter are written:

(a) To inform the shortcoming

(b) To ask for compensation for the
shortcomings
(c) To complain against the shortcomings
(d) To threaten the seller

CCP404.21 22
2. The claim letters are written by

b. The Sellers

d. The Purchasers

f. The Third party

h. None

CCP404.21 23
3. Claim letters are written

b. When the defective goods are received

c. When the shortcomings are found
d. When the terms and conditions are not followed
as agreed upon earlier
e. All of the above

CCP404.21 24
Frequently Asked Questions

1. Give any three characteristics of claim letter

2. Under what circumstances the claim letters are

written

3. Write the hints for drafting a claim letter

CCP404.21 25
Assignment

 You have received a consignment of varnish tins

from the Sunbeam Paint Works, Poona. You
determine the quality of the varnish is poor. Write
a letter to them to allow 5% reduction in the price
or to take back goods

CCP404.21 26
 Frequently Asked Questions

 You have received the defective goods from the supplier.

The goods are also not supplier under the terms and
conditions agreed upon earlier. Write a claim letter asking
for compensation for the mistake on the part of the
supplier

CCP404.21 27