Commercial offer

From Supply Chain Management Encyclopedia

The commercial offer or, simply, offer is a statement intended to result in a binding contract if duly accepted by the offeree. The offer (quotation) is a document which, with a view to concluding a contract, sets out the conditions under which the goods are offered.^[1] The seller should make certain that the essential elements of the contract are clearly stated in the communications exchanged by the parties. For example, in a contract for the sale of goods:

1. The goods ordered should be described without ambiguity;
2. The purchase price and the terms of payment should be stated; and
3. The terms of delivery should be set out, including instructions for packing and invoicing, transportation and insurance.

There are two alternative kinds of offers: (1) free offer (see samples below) and firm offer. (e.g. “Offer firm until 1 March 2013”)

Offer in Vienna Convention (CISG), 1980 ^[2]

International Offering: Scheme and Description of Possible Procedures

LEGEND:

Free Offer Samples

References

1. ↑ Trade Facilitation Terms: An English - Russian Glossary, United Nations, New York, Geneva, 2011 | http://www.ipaeurasec.org/docsdown/conference_0711/glossary_ed2_rev2.pdf
2. ↑ United Nations Convention on Contracts for the International Sale of Goods, Vienna, 11 April 1980, S.Treaty Document Number 98-9 (1984), http://www.uncitral.org/uncitral/en/uncitral_texts/sale_goods/1980CISG.html at 22 December 2007.