Offer Structure of an offer Offers are replies

Structure of an offer Offers are replies to inquiries and have the following parts:

Opening phrase Many thanks for your inquiry of 13 March in which you express

Description of the goods Goods: 600 metres of tie material No. 236 in our

Selling terms Price: The price is 500 Kč for 1 meter of the tie

Validity of the offer This offer is binding for us only if you order

Enclosures As requested we are enclosing a copy of our catalogue. To save time,

Closing phrase We hope that our offer will give you full satisfaction. We are

Possibilities of payment ü Payment against documents ü Payment by the letter of credit

Abbreviation in Incoterms - International Commercial Terms üFOB üC&F üCIF ©Lenka Lexová

FOB – free on board ü The seller pays for transportation of the goods

C&F – cost and freight ü It means that the seller pays for transportation

CIF – cost, insurance, freight ü It means that the selling price includes the

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Offer

Structure of an offer Offers are replies to inquiries and have the following parts: ü Thanks for the inquiry ü Precise description of the goods ü Selling terms (price, terms of payment and delivery) ü Validity of the offer ü Enclosures (pricelist, samples) ü Closing phrase, hope for an order ©Lenka Lexová

Opening phrase Many thanks for your inquiry of 13 March in which you express interest in our goods. We are glad to be able to offer you our products on the following conditions: ©Lenka Lexová

Description of the goods Goods: 600 metres of tie material No. 236 in our catalogue. The articles were manufactured in accordance with our samples. ©Lenka Lexová

Selling terms Price: The price is 500 Kč for 1 meter of the tie material. The price is understood CIF London, standard packing included. Delivery: Two months from the date of your order. Payment: Against documents. ©Lenka Lexová

Validity of the offer This offer is binding for us only if you order the goods by the end of this month. ©Lenka Lexová

Enclosures As requested we are enclosing a copy of our catalogue. To save time, we enclose a proforma invoice for the items listed in your inquiry. ©Lenka Lexová

Closing phrase We hope that our offer will give you full satisfaction. We are looking forward to having an early order from you. ©Lenka Lexová

FOB – free on board ü The seller pays for transportation of the goods to the port of shipment, plus loading costs. ü The buyer pays freight, insurance, unloading costs and transportation from the port of destination to his factory ü Internationally the term specifies the port of origin, e. g. "FOB New York" or "FOB Vancouver". ©Lenka Lexová

C&F – cost and freight ü It means that the seller pays for transportation to the port of shipment, loading and freight. ü The buyer pays for the insurance and transportation of the goods from the port of destination to his factory. ü The passing of risk occurs when the goods pass the ship's rail at the port of shipment. ©Lenka Lexová

CIF – cost, insurance, freight ü It means that the selling price includes the cost of the goods, the freight or transport costs and also the cost of marine insurance. ü The seller's responsibility for the goods ends when the goods have been delivered to the marine carrier or have been delivered on board the shipping vessel, depending upon the terms of the contract. ©Lenka Lexová