Amendments to the contract

It is common for Buyer's representatives to visit Seller's premises for technical or commercial discussions, either before or after a Contract has been made. Pretty often the engineering department of the Seller finds it necessary to improve the model, which the Buyer ordered under the Contract, by making a few modifications (usually shown in the attached drawings). The modifications can be very slight or considerable, but, as a rule, they are very effective and improve performance.

Any alterations to the Contract become valid if they are made in writing and signed by authorized representatives of both parties as per appropriate Clause of the Contract.

Therefore in order to finalize the matter the Seller invites the Buyer to visit his premises. And if the Customer approves of the modifications, the Seller makes an appropriate amendment to the Contract.

If the Buyer has to go abroad, the Seller usually assures him that there will be no difficulties in issuing a visa through providing an official invitation in support of the Customer's application for a visa.

The Seller reequips his workshops from time to time. As a matter of fact they may be the latest word in technology. The level of automation is usually increased and the output becomes considerably higher. As a rule the Buyer's representatives find the modifications reasonable and the Buyer doesn't object to them. After the visit the Seller sends the Buyer a draft amendment for signature.

The following Clauses of the Contract are usually more liable to changes: terms of payment, price, inspection and tests, time of delivery.

So judging from the above information you can get the procedure of making amendments to the Contract which contains 5 points:

1. Amendments to the Contract are necessary if any modifications were made after signing the Contract.

2. The Seller invites the Buyer or his authorized representatives to his premises to make sure these modifications are necessary, effective and improve performance or design.

3. If the Buyer gives his approval for these modification and finds them reasonable, both parties draw up a draft amendment

4. This draft should be coordinated and agreed on.

5. Appendices, addenda and amendments to the Contract are only valid and shall make an integral part of the Contract if issued in a written form and signed by authorized representatives of both parties.

Enquiries and offers

A lot of business transactions are opened with an enquiry. A general item of information, a price-list, a catalogue may be asked for. Detailed enquiries may express requests for the prices of specified goods, terms of delivery, etc. They are mostly short and to the point. The size of the future order may be pointed out because large-scale sales tend to reduce prices. In such cases the seller usually grants the buyer a discount or quantity discount on the list-prices. If made by telex, telephone or in a personal interview, enquiries should be confirmed by a letter.

It's impolite to leave the letter unanswered even if at the moment you are not ready to give a definite reply. A reply to an enquiry (if the seller cannot send an offer immediately) states reasons why the seller cannot send an offer at once and what is being done at the moment. It also points out alterations, if any, as to the quantity of the goods, their model, delivery dates.

If the seller can meet the Buyer's requirements, he sends an offer. The price, the terms and conditions under which a company is willing to sell goods is called an offer. It usually includes the description, the quantity, quality, and the prices of the goods, as well as the delivery or shipment period, and the delivery and payment terms (who pays the cost of delivery, of shipment and insurance and how payment will be made), marking and packing.

An offer may be firm (for a specified period) or may be free (in this case it is usually called a quotation).

A tender is a special kind of offer. It is sent in response to an invitation to submit such an offer in competition with other companies. It is usually public bodies or governments that invite tenders (in form of advertisements) for large-scale business deals, for example, construction work. Tenders are to be submitted by a fixed date, and the advertiser will select the best offer.

When an offer is not an answer to an enquiry, it is sometimes called a sales letter or circular. These are means of advertising a product or service. A sales letter is sent to prospective buyers who you may never have done business with.

Since the aim of a sales letter is to convince the reader that he should do business with you, it is essential that the letter should attract his attention. Remember how many circulars or sales letters find their way into a waste paper basket without being read.

It is also possible to attach an order form to the offer.

Competition is keen nowadays, and businessmen cannot afford to wait for people to come to them. The circulars in the letter-boxes, the commercials on TV, advertisements in the newspapers, company's letters to their counterparts (letters of introduction), etc. are instances of offers made by the business world to the public.