Commercial offer

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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. The latter has to have a term of validity as the indication (e.g. “Offer firm until 1 March 2013” or "the offer is firm for 72 hours" the time of sending is fixed in e-mail). The free offer has not to have any indication of its "freedom", but such kind of offer could often have the following text at the upper side of the offer: The following offering is made based on the latest information available. New Marco Polo Limited advises potential buyers that the offerings are made on an "as available basis”, and they are subject to prior sale and prices may change without prior notification. Therefore, the firm offer [hard offer] is a proposal for buying to an offeree that becomes a bid for an offeror having been accepted on the terms stipulated therein.The free offer [soft, or standing offer], in its turn, is a proposal for buying to an offeree that has a non-bidding or purely informative nature until it is accepted.



Contents

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

International Offering: Scheme and Description of Possible Procedures

OFFER EEEE.jpg

LEGEND:

Free Offer Samples

OFFER EEE.jpg OFFER FREE.jpg

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.
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