Replies to Offers

When a prospective buyer receives an offer, he will examine it carefully and perhaps compare it with offers from other suppliers. If the terms of the offer suit him, he will place an order. An order following a firm offer, provided it is placed on time and constitutes an unqualified acceptance of the offer, results in a contract. If the offer was made without engagement, there is no contract unless buyer's order is accepted by the seller.

Sometimes certain points in the offer have to be clarified or additional information has to be obtained from the supplier before the buyer can place an order. (By making his offer clear and complete, the supplier can save his customer and himself time and trouble.)

If the buyer cannot make use of the offer, he should, as a matter of politeness, inform the seller of his refusal.

Perhaps the buyer is interested in the goods offered, but does not agree to the prices or terms proposed by the seller. In such cases he may try to obtain concessions from the supplier or make a counter-offer. When the supplier receives a counter-offer, he must decide whether or not he wants to accept it.

Orders

Orders are placed either in response to an offer, as mentioned above, or on the buyer's own initiative, without a preceding offer. In the latter case, the buyer declares that he is prepared to buy certain goods if they can be supplied at the prices and on the terms stated.

The order which opens business between two firms is called the first order or initial order. Orders for goods previously bought from the same firm are repeat orders or re-orders. A trial order is an order for a small quantity for testing purposes, which is followed by a larger order if the buyer is satisfied with the quality of the goods, or if he finds that there is a market for them. Advance orders are placed in advance of the time when delivery is desired. A standing order is an arrangement with the supplier, according to which the supplier delivers goods in specified quantities at certain intervals until further notice.

Specimen Letters

I. Request for a Sample

Dear Sirs,

Thank you for your letter dated 18th June regarding your DECO Glue for Plastics.

Before making a decision as to whether we should place an order for a quantity, I should be pleased if you could arrange for a sample to be sent to me in order that we may test the suitability of the glue for the application we have in mind.

Yours faithfully,