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.

Questions for discussion

BOOK 1

Lesson 1

1. What do you usually do at your office?

2. What matters do you usually discuss with foreign businessmen?

Lesson 2

3. Speak on the goods you sell.

4. Speak on the talks you're going to have.

Lesson 6

5. When cannot the Seller give you a discount on the price?

6. On what terms do you deliver the goods to your Buyers?

7. What terms of payment suit you, as a rule?

8. What details must you clarify during the talks?

9. When can you sign a Contract with a Company?

Lesson 7

10. Why do people make reservations for flights in advance?

11. When do you have to pay customs duty?

12. What things are liable to duty?

BOOK 2

Lesson 4

13. When do you usually sell goods on CIF (FOB) terms?

14. Why do you sometimes agree to take part deliveries?

Lesson 7

15. Why do many companies often improve their models?

16. Why does the Buyer want to visit the manufacturing plant, as a rule?

17. When are you satisfied with your transactions?

18. How do you choose the Company which you'll sell your goods to?

19. What do you usually do if the Buyers don't want to accept prices?

20. What are you regular terms of payment?

21. Speak on a Letter of Credit.

22. What is a trial order?

23. When do the Sellers give a discount to their customers?

Lesson 9

24. Is it convenient to travel overnight? Why?

25. Why does the Buyer sometimes ask to give him drawings of the latest model?

26. Are your goods popular abroad? Why?

27. How do your goods compare with the goods of other companies?

28. What shops would you visit at a manufacturing plant? Why?

29. What can you see in different shops?

30. How does your latest model compare with the previous one?

BOOK 3

Lesson 2

31. What kind of stand can impress you when you visit an exhibition?

32. Why are exhibitions and fairs growing in size from year to year?

33. Why do we say that every exhibition is a good method to advertise different goods?

34. Why do fairs and exhibitions pave the way for the consolidation of peace and friendship among different nations?

35. What's the purpose of arranging fairs and exhibitions?

36. Why do foreign companies show interest in the exhibitions which are held in Russia?

37. Why is it necessary to have qualified stand-attendants at exhibitions?

Lesson 4

38. Why does the Seller sometimes have to develop special features in their goods?

39. Why does the Buyer often want the Seller to quote FOB terms of delivery?

40. Why is it necessary for our trading organizations to be in close touch with the world market?

41. What information can Buyers find in offers?

42. In what case do Buyers agree to increase an order?

43. What influences the price increase?

44. When can't the Seller offer goods for prompt delivery?

45. Are orders usually placed with the companies who give the lowest prices?

Lesson 5

46. Why are leaflets often enclosed with offers?

47. Why does the Buyer want the guarantee period to be extended?

48. Why do the Sellers arrange service visits of their engineers after the guarantee period?

49. Are leaflets and catalogues supplied to the Buyer only in the case of the first transactions or regularly? Why?

50. What kind of information do leaflets provide?

51. What kind of offers do Buyers find attractive?

52. What points do Buyers look into before they accept an offer?

53. In what cases are export prices revised?

54. What are the Seller's obligations during the guarantee period?

55. What is the Buyer responsible for during the guarantee period?

56. In what cases can the guarantee period be extended?

57. Why must faulty parts be replaced urgently?

58. In what case are defects in the equipment corrected during the guarantee period at the Buyer's expense?

59. Is it necessary for large and popular companies to advertise their goods through leaflets and catalogues?

Lesson 8

60. Why does the Buyer sometimes ask to quote for spare parts?

61. What information is included in specifications?

62. When do Sellers usually enclose specifications with offers?

63. What kind of document is a Bill of Lading?

64. Why is it very important?

65. What does the validity period of an offer mean?

66. When is it necessary for the Buyer's inspectors to be present at the test at the Seller's plant?

67. When can tests be carried out without the Buyer's inspectors?

68. What kind of document is a Notification of Readiness for Tests?

69. Why is it to be sent to the Buyer in advance?

70. What kind of document is a Test Report?

71. What kind of document is a Release Note for Shipment?

72. Why are Sellers interested in getting a Release Note for Shipment without delay?

73. Why do Sellers always have to pay special attention to packing?

BOOK 4

Lesson 1

74. What considerations are usually taken into account when an enquiry is sent?

75. What points does an enquiry include?

76. Are enquiries usually sent to one or a few different firms?

Lesson 3

77. How are offers initiated?

78. What items are usually included in an offer?

79. Are prospective Buyers usually invited to inspect the equipment before the Contract is signed?

80. Do offers usually contain an element of advertising? What factors determine a discount?

Lesson 4

81. What do Contracts guarantee?

82. Into what 2 groups can Contracts be divided?

83. What important items do Contracts cover?

84. What are the most important clauses of the Contract?

85. In what way is payment to be made under the Contract?

86. What kind of Letter of Credit is to be opened by the Buyer?

87. When is the Letter of Credit to be opened by the Buyer?

88. For what value is payment to be made?

89. How long is the Letter of Credit to be valid?

90. In what case do the contracting parties have the right to renegotiate the price?

91. Why does the Contract state the right of both parties to renegotiate the price?

92. What factors can affect the prices for the goods (e.g. asbestos, equipment, coffee, nylon, chemical, etc.)?

93. What can affect the construction projects?

94. What factors can affect the production capacity of the plant (the delivery schedule, production programme, etc.)?

95. What information does a shipping schedule contain?

96. When are shipping schedules drawn up?

97. Why is it important to draw up Contracts in foreign trade? In what way do they protect the interests of the partners?

98. Who charters a vessel if goods are sold on FOB terms'? What terms of delivery do Russian import (export) organizations practice?

Lesson 5

99. Why do Buyers often visit Sellers' premises before (after) a Contract is signed?

100. What clauses of the Contract are more liable to changes? What is the procedure of making amendments to Contracts?

101. In what cases are amendments, alterations and modifications made?

102. Is much work done before a Contract is concluded? Support your point of view.

103. Do Sellers often extend invitations to visit their premises?

104. How are programmes for visits worked out?

105. Why are visit programmes sometimes modified?

106. Are Buyers invited to Sellers' premises more often before or after the Contract has been signed?

107. For what purpose are they invited?

108. What arrangements are usually made before specialists come to the Sellers' premises?

109. Are Sellers usually willing to show their customers round their premises? Why?

110. Do businessmen always send letters to express thanks for the hospitality shown to them?

Lesson 6

111. Why do Sellers inform their Buyers of their decision to raise the prices?

112. Why do Sellers indicate the exact date when the new prices will come into force?

113. What factors affect the price?

114. Why are visits necessary for the promotion of business?

115. Which party usually arranges the programme of the visit?

116. At whose expense are visits arranged?

117. Why are Buyers interested in visiting Seller's premises?

BOOK 5

Lesson 1

118. Which clause of the Contract seems most important? Give your reasons.

119. In what way can each of the clauses be amended?

120. For what reasons can Buyers sometimes delay the visit of inspectors?

121. In what cases do Buyers waive inspection?

122. What are the main clauses of the Contract?

123. What manners of payment are practiced by importing and exporting trade organizations?

124. Why is the guarantee sum often stipulated in the Contract?

125. Is the time of delivery subject to changes?

126. What is the importance of inspection and tests?

127. When and where are inspections and tests carried out?

Lesson 2

128. For what purpose are amendments added to Contracts?

129. What documents are usually presented for payment?

130. What is the procedure of issuing a Release Note for Shipment?

Lesson 3

131. Against what risks are goods usually insured?

132. Why must shipments be insured?

133. What kind of document is a Letter of Guarantee?

134. When are Sellers not responsible for the quality of the goods during the guarantee period?

135. What information do Guarantee Clauses usually contain?

136. On what factors do Sellers' guarantees depend?

137. Why are two dates specified in the Guarantee Clause of Contracts for equipment?

138. What are usual responsibilities of Sellers in respect of packing and marking?

139. What packing problems may arise in the course of executing orders?

140. Why should extra care be taken to mark the shipments properly?

Lesson 4

141. Why is it preferable to settle claims in an amicable way?

142. Why is it wrong policy to reject unjustified claims off-hand?

143. What does the sum claimed depend on?

144. When does the dissatisfied partly claim compensation?

145. When does the Buyer have the right to claim a penalty?

146. What penalty can be claimed for the first 4 weeks of delay?

147. Does the Buyer have the right to claim a higher penalty after a month's delay? What does it amount to?

148. What is the maximum penalty that can be claimed?

149. Do force majeure clauses cover such complications as government decrees?

150. How can Buyers refund the charges incurred through the fault of Sellers?

151. Why do claims frequently arise in business?

152. What claims are made by Buyers (Sellers)?

153. How are claims classified?

154. How should a justified claim be documented?

155. What can the responsible party undertake after receiving the claim?

156. What are the ways of handling justified claims?

157. When do the parties in dispute resort to arbitration?

Lesson 5

158. What losses could be involved in the execution of the order?

159. Who can cover travelling expenses?

160. Do the parties concerned often refer their disputes to the Arbitration Commission?

Lesson 6

161. Do claims connected with shortage of goods often arise in foreign trade practice?

162. What usually causes shortage of goods delivered?

163. How can claims affect the relationship between trading partners?

164. Why do businessmen try to avoid referring claims to arbitration?

Lesson 7

165. What might be the cause of overdue payment?

166. What may be the reasons for cancelling the visit of Sellers’ experts?

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