Unit Five Offers and Counteroffers
Part Five: Exercises
I. Answer the following questions:
1. An offer refers to a promise to supply goods on the terms and conditions stated, in
which the seller not only quotes the terms of price but also indicates all the necessary terms of sales for the buyer’s consideration and acceptance. In international trade, an offer of goods is usually made either by way of advertisements, circulars and letters or in reply to enquiries.
2. Quotation is not an “Offer” in the legal sense. An offer is a promise to supply goods on
the terms and conditions stated, while a quotation is merely a notice of the price of certain goods at which the seller is willing to sell.
3. The firm offer means the exporter promises to supply a certain quantity of goods at a
fixed price within a stated period of time. The terms such as quality, packing, specifications, and payment must be clear and definite. The firm offer is binding upon the exporter, once the firm offer is accepted by the buyer within its validity, the exporter cannot revise or withdraw it.
The non-firm offer is an offer without engagement. Usually, it may contain reservation clause like “The offer is subject to our final confirmation.”
4. The validity of an offer means the time specified within which it must be accepted. If it
isn’t accepted within this time, this offer is considered to have lapsed.
5. A satisfactory offer generally includes the following points:
1) An expression of thanks for the enquiry, if any;
2) Name of commodity, quality, quantity and specifications;
3) Details of prices, discounts and terms of payment;
4) An undertaking as to the date of delivery or time of shipment;
5) Packing, if it is necessary to mention;
6) The period for which the offer is valid;
7) An expression of hope that the offer will be accepted.
Without the sixth point, you turn a firm offer into a non-firm offer, which might contain even fewer items.
6. A counteroffer is made when a prospective buyer finds any terms and conditions in the
offer unacceptable. He will then place before the seller terms or conditions he sees fit for the latter to consider. In such a message, he should thank the seller for his trouble and explain the reason for rejection. Not to do so would show a lack of courtesy.
7. When a buyer finds it difficult to accept some of the terms in an offer such as the price,
package, he may either demand the seller to make a better offer or modify some terms and propose an acceptance on the new conditions. We call this conditional acceptance.
8. A counteroffer should include the following:
1) Thank the seller for his offer (or samples, if any);
2) Express regret at inability to accept and give the reason why you cannot accept;
3) Make a counteroffer if, in the circumstances, it is appropriate;
