Steps to Conclude the Contract of Sale

An enquiry is a request for information.

Once you have obtained the name and the address of a supplier, you can send them a general enquiry asking for information about the goods they supply (catalogues and price-lists).

If you need more details, you can send a specific enquiry, which may include such information as terms of delivery, delivery times, terms of payment, discounts, types of packing and so on.

One more way of obtaining offers from suppliers is to place an advertisement in newspapers or other publications. This advertisement is called an invitation to tender.

The next step is offering.

An offer (a quotation) is a statement by sellers usually in the written form expressing their wish to sell the goods.

Every contract includes causes:

• the description of the goods offered (their quality and quantity);

• details of prices, discounts and terms of payment;

• terms of delivery (the date or the time and the place of delivery); and

• type of packing.

So these voluntary (free) offers are called unsolicited offers which are sent on the seller's own initiative in the hope of making potential customers interested, whereas solicited offers are made in answer to an enquiry.

Besides there is a firm (binding) offer, which is a promise to supply goods on the terms stated, i.e. sellers must provide the goods at the prices and terms given in their offer within a stated period of time.

The next type of offers is an offer without engagement (or a non-binding offer), which implies that certain factors may exist preventing sellers from binding themselves to the terms of the offer.

The last step is placing an order.

If the buyers are satisfied with the terms of the seller's offer, they may then place an order. Nowadays, there are a lot of different types of orders.

A trial order means that the customer orders a small quantity of goods to test the quality.

A firm order means that the customers commit themselves to buying the goods. This type of order may have a fixed delivery date.

A standing order is when the customer places one order for a certain quantity of goods to be delivered at regular intervals, e.g. 500 kg of coffee on the first day of each month.

An initial order is the first order placed with a company.

A follow-up order is the second order placed with a company.

Merchandise on call means that the customers place one order for a quantity of goods which they have delivered in parts as and when they need them.

An advance order is when the customers order the goods a long time before they need them or a long time before the goods are available.

A bulk order means that the customer orders goods in large quantities.

A repeat order is when the customer orders exactly the same goods as before.

A sales contract is a legally binding agreement reached by the seller and the buyer.clauses (articles) are used: • Naming (definition) of the parties • Subject of the contract, and volume of delivery • Prices and the total value (amount) of the contract (including terms of delivery) • Time (dates) of delivery • Terms of payment • Transportation (carriage) of goods (packing, marking and shipment) • The sellers’ guarantees (the quality of the goods) • Sanctions and compensation for damage • Insurance • Force majeure circumstances • Arbitration • General provisions.

Date: 2015-12-17; view: 1006