Commercial Correspondence
Unit 3
Offers and
Cover Letters of Offers
What is an offer?
An offer is a promise to supply goods or
services on the terms stated.
Usually the offerer is the seller, and the
offeree is the buyer.
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Types of offers
Firm offer
Also called Quotation with qualifying
statements
Free offer (offer without engagement)
Also called Quotation
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Firm offer
With qualifying statements, usually about
time validity
•For acceptance within 14 days.
•The prices quoted will apply only to orders
received on or before 31 March.
Usually made to one buyer only
Without sales confirmation
Not legally binding until accepted
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Free offer
(offer without engagement)
Without qualifying statements, and providing
negotiable terms by using adverbs “normally” or
“usually”, or by asking the customer to confirm.
May be made to several buyers.
Not legally binding even when accepted by the
buyer.
Only binding when the seller, after receipt of the
buyer’s acceptance, confirms that acceptance
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