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1、Unit Four,Offers and Counter-offers,Learning Objectives,To understand conditions than an offer and counter-offer shall possess. To understand conditions of acceptance To learn usual steps for making an offer and a counter-offer,1. OffersAn offer is a reply made by a seller to the enquiry by a buyer.
2、 It has also been the practice that a seller voluntarily makes an offer to his regular customers or new customers who may have interests in his products without waiting for an enquiry. In practical international business, there are two kinds of offers:firm offer non-firm offer,A firm offer is a prop
3、osal for concluding a contract on the terms and conditions stated. Firm offers are made when a seller promises to sell goods at a stated price and within a stated period of time. Usually it is made by a seller upon receipt of an enquiry from a buyer. When a buyer initiates an offer to a seller, it i
4、s called a bid.An offer creates a power of acceptance permitting the offeree by accepting the offer, to transform the offerors promise into a contractual obligation. Thus, once it has been accepted it cannot be withdrawn.,A firm offer will include the following:,An expression of thanks for the enqui
5、ry, if any;Name of commodities, quality, quantity, and specifications;Details of prices, terms of payment, commissions, or discounts, if any;Packing and date of delivery;The validity of the offer;An expression of hope that the offer will be accepted. (optional),2.Counter-offers,When an offeree does
6、not agree to the terms and conditions of the offer completely and he wants to amend the offer, a counter offer can be made. A counter offer is virtually a partial rejection of the original offer and also a counter proposal initiated by the offeree. The offeree may show disagreement to the price, or
7、packing, shipment and state his own terms instead. Such alterations, no matter how slightly they may appear to be, signify that business has to be negotiated on a renewed basis.,The original offerer or the seller now becomes the offeree and he has the full right of acceptance or refusal. In the latt
8、er case, he may make another counter offer of his own. This process can go on for many a round till business is finalized or called off. When an offeree rejects an offer, he should write to thank the offerer and explain the reason for the rejection. Not to do so would show a lack of courtesy.,Guidel
9、ines for Writing,1. A letter of offer or quotationA letter of offer or quotation is usually composed of the following three parts:(1). An expression of thanks for the enquiry, if any;(2). Details of the goods, prices, discounts or commissions, terms of payment, the time of delivery, the time period
10、in which the offer is valid;(3). An expression of the offer will be accepted.,2. A letter of counter-offer A letter of counter-offer is to be written, which should include:1. An expression of thanks for the offer;2. Reason for inability to accept the offer;3. A counter-offer（your own idea including
11、terms and conditions acceptable, etc.）;4. A wish of the counter-offer will be accepted (urging the reader to accept early); 5. A wish of other business opportunities in future if necessary.,3. A letter of re-counter offer A letter of re-counter offer, which should cover the following particulars:1.
12、An expression of thanks for a counter offer;2. Stating what shall be amended;3. A wish of a favorable reply.,Specimen Letter-1 (An Offer based on Enquiry)SHENZHEN NEW CENTURY TRADING CO., LTD Rm 818, 3 Building Ease, SEG Science & Technology ParkHuajiang North Road, Shenzhen, China 518028E-mail:H Te
13、l: 86-755-30113998September 30, 2007 The NILE TRADEING CO., LTD 161 Pyramid Street Alexandria.Egypt Dear Sirs, Replying to your enquiry of May 13 for a supply of our crockery, we are pleased to quote as follows: Teacups 56 per hundred Tea Plates 40 per hundred Teapot, 1-litre 3 each,These prices inc
14、lude packing and delivery, but crates are charged for, with an allowance for their return in good condition. We can deliver from stock and will allow you a discount of 5%, but only on terms ordered in quantities of 500 or more. In addition, there would be a cash discount of 2% on total cost if payme
15、nt were made within two months from date of invoice. We hope you will find these terms satisfactory and look forward to the pleasure of your order.Yours faithfully, Yao Da-ming,Specimen Letter-2（Non-firm Offer） Green Plants Co., Ltd. Rm. 2808 Kai Tak Comm. Centre, 317 Des Voeux Road, Central Hong Ko
16、ng Tel: 00852-63108921 E-mail: August2008 Foods Industrial Company 875-9865 Shireroad London, UKDear Sirs,In reply to your letter of May 5, we have pleasure in offering, subject to our final confirmation. Our main products are as follows:,Commodity: Green Beans Guangdong Origin, 2007 crop Quantity:
17、300 metric tons Price: USD930 per metric ton CIF London Packing: in ordinary second-hand gunny bags Shipment: in August, 2008 Payment: by irrevocable L/C, payable by draft at sight. We hope this offer will be of interest to you, and look forward to hearing from you soon.Yours faithfully,Rob Kennedy,
