Payment 3 settling accounts
FOCUS 1. Read and discuss the letters.
Letters on payment can be classified into several types:
– Letters advising payment
– Letters acknowledging payment
– Letters asking for more time to pay
– Letters – requests for payment
1.1 The buyer advises of payment
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TRANSIT-HANDEL E-69 Ester str. Vienna Austria
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Our ref. Your ref.
14 May 20__ TECHNICAL EQUIPMENT Corp. Longland House 20-25 Hunt str. London EC3P 2BE UK
Dear Sirs,
We would like to inform you that we have arranged with Credit Suisse, Zurich, to accept your bill against the documents. We shall collect the consignment as soon as it arrives in Asuncion and honour your draft at maturity.
Please find enclosed the copy of our instruction to Credit Suisse.
Yours faithfully, H.Smithers H.Smithers Buyer
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1.2 The seller acknowledges payment
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TECHNICAL EQUIPMENT Corp. Longland House 20-25 Hunt str. London EC3P 2BE UK | ||
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Our ref. Your ref.
20 May 20__
TRANSIT-HANDEL E-69 Ester str. Vienna Austria
Dear Sirs
We have received an advice note from our bank this morning that you accepted our bill (No. BE 458) and the documents were handed to you.
We hope you will be pleased with the consignment. We would like to thank you for your cooperation. Please do not hesitate to contact us if you need anything else of our manufacture.
Looking forward to further business, we remain
Faithfully yours F.King Frederic King Accounting Department
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2.1 Requesting time to pay
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DAVENPORT Ltd. Queens B-78 Cathays Park Cardiff
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Our ref. Your ref.
18 July 20__ REISDEN ING CF1 9UJ Verbaarten Amsterdam
Dear Mr Grooves,
Your quarterly statement reached us yesterday and we confirm that it has been found correct. We have to inform you, however, that it is not yet possible for us to meet our obligations to pay you the outstanding sum of $150,000.00, which was due on 10 July.
As you know we have always settled our accounts promptly and therefore greatly regret that we now find it necessary to ask you for two months’ extension of credit to clear the current liability.
Our difficulties are temporary and have been created by a fire at our central warehouse. The fire caused extensive losses, for which we have not yet been compensated in full. We, however, hope to be able to make payment of the full sum we owe you within 7 weeks.
We rely on your understanding our present situation and regarding these circumstances as exceptional. We would appreciate it if you could make us this concession.
Please accept our renewed apologies for this delay.
Yours sincerely, Tomas Malkovich Tomas Malkovich Manager |
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