1. Chapter Five Quotations, Offers and Counter- Offers

2. Section 1 Introduction Key terms to grasp 1. A quotation or quote is a promise to supply goods or services on the terms stated, including essential information ： e.g. description of the goods, quantity, terms of sale, packing, time of shipment, and terms of payment 2. An offer means submitting or furnishing details including prices, quantity, date of delivery, packaging. Or, according to the United Nations Convention on Contracts for the International Sale of Goods, a proposal for concluding a contract addressed to one or more specific persons constitutes an offer if it is sufficiently definite and indicates the intention of the offer to be bound in case of acceptance.

3. 3. firm and non-firm offers a firm offer is binding on the party offering if the offer is accepted by the offeree. a non-firm offer is not binding on the offeror. A counter-offer means either the offeree proposes a new set of terms for the transaction or he makes a conditional acceptance by making actual, material changes in the offer.

4. Section 2 Specimen Documents Specimen 1: Quotation Dear Mr Hawking We have received your enquiry of 12 September about our bedsheets and are pleased to quote as follows: 500 sets @GBP19.80 each CIF London Incoterms 2000, including your 2% commission.1 Our latest brochure is enclosed for your reference. Your early reply would be greatly appreciated. Yours sincerely

5. Specimen 2: Quotation Dear Smith, Many thanks for your enquiry of 10 October. Here is our quote. We hope for your initial order. Yours sincerely Goods:Rubber hammers as per attached specification Quantity:2,000 Price:€26.00 per unit FCA Manchester International Freight Terminal Terms of Sale:Except where otherwise specified this quotation is governed by INCOTERMS 2000 Packing:Each unit carton packed (in five extra strong fibre board containers, 20 per container) Delivery(lead time): 12 weeks from receipt of an acceptable order. Terms of Payment: Cash against documents by means of a Sight Bill of Exchange presented through Chase Manhattan Bank, New York

6. Specimen 3: A firm offer by a manufacturer in reply to a client’s inquiry Jubilee Brand Bicycles Thank you for your letter of 3 August 2012, inquiring about our Jubilee Brand bicycles. We are exporting bicycles of many makes, among which the Jubilee Brand is the most famous. Our products are in great demand and enjoy high sales due to their light weight, good quality and reasonable price. As requested, we are quoting as below:

7. 20″ Men’s Style@ US $27/uni 20″ Women’s Style@ US $29/unit 26″ Men’s Style@ US $30/unit 26″ Women’s Style@ US $32/unit Payment confirmed, irrevocable sight L/C Shipmentwithin three weeks of receiving the L/C

8. The above prices are understood to be on CIF Karachi3 basis net. Please note that we do not allow any commission, but a discount of 4% will be granted if the quantity for each specification is more than 1 000 units. The above offer is firm, subject to your reply reaching us by 15 August 2012. We look forward to receiving your order. Yours sincerely Qingdao Bicycles Imp & Exp Co (signature)