BRITISH CRYSTAL Ltd.

Glazier House, Green Lane, Derby DEI 1RT

Telephone: 0332 45790 Telex:901614 Fax-0332 51977

Mr M Kassim 6 June 20—

S.A. Importers Ltd.

Al Manm Way

Riyadh

SAUDI ARABIA

Dear Mr Kassim,

Thank you for your letter which we received today. As you requested, we have enclosed a draft contract of the agency agreement.

You will see that we prefer our customers to pay us direct, and usually deal on a letter of credit basis, unless we can obtain references or your guarantee if you take the del credere commission.

You would not be required to hold large stocks of our products, but a representative selection of samples, and we can meet orders from the Middle East within four weeks of receipt.

Leaflets and brochures will be sent to you to hand out to your customers as one method of advertising, but we will also allow £3,000 in the first year for publicity which can be spent on the type of advertising you think suitable for glassware. We find that newspapers and magazines are the best media.

The initial contract will be for one year, subject to renewal by mutual agreement, and that disputes will be settled with reference to Dutch law, as our relative legal systems are different.

If you have any further questions with regard to the contract, or anything else, please contact me. I look forward to hearing from you.

Yours sincerely,

N.Jay

Enc: Draft contract

Allison & Locke Importers Ltd.

Rooms 21-8, Rothermede House, Eastgage Street, London WC1 1AR.

Directors: M. Allison, B. Locke

Telephone: (171 6369010/1/2/3/4 Reg. No.: London 897032

Telex: 9816172 VAT No.: 232 6165 73

Fax: 071 636 9271

Cable: ALLOCK London

Mr F. Iglasis 17 October 20—

Iglasis Leather Manufacturing SA

Enrique Granados 109

Barcelona

Spam

Dear Mr Iglasis,

We are interested in the offer you made to us in your letter of 8 October to act as sole agents for your leather goods in this country.

We think that the annual turnover you suggested was rather optimistic, and while we agree that there is a demand for leather cases and bags here, we think that half the figure you quoted would be more realistic. In view of this, the commission you offer, six per cent, is rather low, and we would expect a minimum of ten per cent on net invoice totals.

As sole agents, the territory you offer, i.e. London, would be too restrictive for sales, and this would have to be extended to the home counties. We also feel it would be better for customers to settle with us direct, and we would remit quarterly account sales deducting our commission, but we are prepared to leave this matter open for discussion.

Finally, we will hold the stock you suggested, but if there is a rush of orders, as there may be now we are nearing Christmas, you would have to shorten the delivery date you quoted, from six weeks to three weeks from receipt of order.

If these conditions are suitable, then we would certainly accept an initial one-year contract to act as your agents.

Yours sincerely,

M. Allison

10.5.4

Reply to an offer of an agency

This letter is a reply to an offer of an agency, but the prospective agent is asking for the terms to be changed.

Questions

1. What sort of agency is Mr Iglasis offering?

2. Why does Mr Allison think a six per cent commission is rather low?

3. Which matter is he prepared to negotiate?

4. Why are delivery dates a problem?

5. How long will the initial contract run?

6. What did Mr Allison mean by saying that the annual turnover Mr Iglasis suggested was optimistic?

7. If you were Mr Iglasis, what concessions do you think you could make to meet Mr Allison's terms?

8. Which words in the letter correspond to the following: exclusive; too hopeful; at least; limited; send; pay; first?

10.5.5

Date: 2016-01-03; view: 950