lntroduction
pdqe 5
1
Letters,faxes,and
emails
2
Contentand style
2s
3
Enquiries
38
4
Replies
and quotations
47
5
Orders
6r
6
Payment '
76
7
Complaints
andadjustments
gs
8
Credit
n7
9
Banking
87
Agentsand agencies
168
10
7
11 Transportation
hnd shipping
18s
t2 Insurance
221
13
Miscellaneous
correspondence
241
L4
Memosand reports
2so
15
Personnelappointments
266
Answerkey
z8z
Glossary
288
Index
297
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Lililumeryomtdcnce,
whether it is by letter, fax, or
Lrurumtrntr|ls
abyaspect of the world of commerce
umniill
hmmmessIt refl ectson the competenceand
of the personwho has written
;gtchrotuumalism
druuffi' " - company he or sheworks for. Clear,
,rffiffiuurecorrespondence
is an important part
M'muummmog
an effcient business,and can
pmumwufte
gmdrelations. Unclear or confusing
ummpoumdence
can causemany problems,
llpedlo misunderstandings, delays,
rmrrnll
iluoudl
iluutr
humfurcss,
and poor relations between
uudlmilffiaals,
departments, and companies..
lUMe,writing
skills - whaf is written and
tumm
ff mqpressed- should be as much a part
rMiahrumlmess
education as accountancyor
ilMro[lnmm[xcs.
'ffi,rw
@ord Handbook of Commercial
'rlmrw4mldezceis intended for peoplewho
lmdifrmwrite commercial correspondencein
ltnrm$rllmh
as part of their work, and for students
unrhrouwless
and commercewho planto make a
itmmmrmthebusiness
world.It aims to provide
| .*dfjjiirnl
hslp inwriting commercial
itmmspondenceof all kinds, including letters,
iem@s,
ffi...........![ails,
reports, memos, social
fl@mqpordence,and application letters and
cwm,
Iffieglains how to write clearly and
tffimmely,and demonstrateshowit is possible
tltu"
hmpftite without seeming timid, direct yet
mmif
murdeconciserather than abrupt, and firm
futr'mumlfi
inflexible.
Ltrsms
of earlier editions of this book will
mthrse$,at,while it retains the coreelements
m"prewfimrs
editions,this third edition has been
,wsmnsed
and updated to reflect changesand
roumenolnrnents
in commercial correspondence,
m pmmhcular
the wider use of email in the
mmrmmessworld.
]trheirook dealswith the structure,
Mwtrlhtion, content, and style of all kinds of
mmespondence.Itcoversvarious types of
fimmmctioninduding enquiries,quotations,
nn'rdrftryi'$,
paJrynents,
credit, complaints, and
&drurorsfurxents,
and provides background
rdfnumilEtion
and examplesof commercial
immesErondence
from the main types of
umrmmmercial
organization,for example banks,
fllsru]m-d$rce
companies,agencies,and
companiesinvolved in transportation,
including shipping.
Forthe purposesofthis book,we have
chosenthe blockedstyleof correspondence
with no punctuation andhave used some
representativestyles of presentation and
layout.Youmayfind otherways of doing
things which are perfectly acceptable,and
individual companiesmay have their own
preferred style for correspondence.The most
important thing is to be clear and consistent in
whateveryou chooseto do.
Unit r introduces the three main kinds of
commercialcorrespondence
- Ietters,faxes,
and emails.The characteristicfeatures of each
are illustrated with examples,and guidance is
given on when eachkind shouldbe used.Unit z,
again fully illustrated with examples,deals
with the important areasof content and style.
Eachunit thereafterfollows the same pattern:
- An introduction to the topics coveredin the
unit, and an explanation of key terminology
and the functions of the organizationslikely
to be involved.
- An analysisof the objectivesto aimforwhen
you are writing, with, where appropriate,
Iists of alternativephrases,sentences,
or
paragraphswhich you can substitute in
different situations.
- Examplecorrespondence
and transactions,
togetherwith comprehensionquestions
focusingon content,vocabularystyle,and
the rolesofthe correspondents.
- At the end of the unit, a summary of key
information in'Points to remember'to
refresh your memory.
At the back of the book you wiII flnd:
- An answer key to the comprehension
questions.
- A new glossaryof usefulbusinessand
commercial vocabulary to help you
consolidateand build your knowledge.
- A revisedand extendedindex to help you
accessinformation throughout the book
quickly and easily.
The accompanying Workbook provides
supplementary practice material.
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The correspondenceand documents used
reflect authentic transactions and supply
information abolrt commercial practice in the
UK. The Handbook also helps you to gain a
better understanding of the sometimes
confusing roles of different commercial
organizations, e.g.merchant banks and
commercial banks, Lloyd's and other insurance
companies,The Baltic Exchangeand the
Shipping Conference.
TheOxford Handbook of Commercial
has been designedto provide
Correspondence
a comprehensiveguide and referenceto the
essentialwriting skills neededinthe
commercial world. Above all, we hope that this
bookwill enable youto improve yourwriting
skills so that you can approach any business
writing task with increasedconfidence.
I
iii
8
8
8
8
ro
1o
1r
1r
11
Ietters
l avour t
Sender'address
s
Date
l nsi deaddress
Attenti onl i ne
Sal utati on
Bodyofthe letter
Compl i mentary
cl ose
Si gnature
12
LA Y OU T 2
12
12
14
14
14
14
14
14
14
Letterhead
References
Perpro
Jobti tl e
E ncl osures
LA Y our3
P ri vateand confi denti al
Subj ectti tl e
Copi es
14
AD D R E S S IN C E N V E LOP E S
Faxes
t6 tN TR oD U cl oN
' 1 6 P repari ngfortransmi ssi on
t6 srY LE
-17
r8
19
20
IN TR OD U C TION
zo
20
20
20
Advantages
D i sadvantages
E mai land otherformsof correspondence
E mai l addresses
LA Y OU T
2 1 H eaderi nformati on
21 Messagetext
2 1 5i gnature
22
STY LE
22
23
24
25
z6
27
E mai l abbrevi ati ons
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z8
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Letters
Faxes
E mai l s
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Letters
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T AY O U T1 >
The letter opposite is from a private individual
in Denmarkto a companyinthe UK.It shows
the basicfeaturesof a simplebusinessletter.
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Sender's
address
In correspondencethat doesnot have a
rErrERHEAD,thesender'saddressis placedin
the top right-hand cornerofthe page.It is also
acceptable,butlesscommon,to placeit inthe
top left-hand corner.Punctuation is rarely used
in addresses
thesedays.
The sLocrrp srylr is the most widely
used,i.e.eachline startsdirectlybelow the one
above.
In contrast with practice in some other
countries,in the UK it is not usual to write the
sender'sname before his or her address.
Date
The date is written directly below the sender's
address,separatedfrom it by a space.In the
caseof correspondencewith a Ietterhead
>seepagerz, it is usually written on the righthand sideofthe page.
The month in the date should not be written
in figures asthis can be confusing; for example
r.j.03 meansn March zoo3in British English,
where the sequenceis day-month-year, but
3 Novemberzoo3 in American English,where
the sequenceis month-day-year.
It is acceptableto write the date with or
without the abbreviations-th and -nd,e.g.
z4th Octoberor z4 October,andto transpose
the date and the month,e.g.Odoberz4or
z4October.These
arematters of personal
preference,but whatever you chooseyou
should be consistent throughout your
correspondence.
Insideaddress
Therwsrpn ADDREssis writtenbelowthe
sender'saddressand on the left-hand side of
the page.
Surnameknown
If you knowthe name of the person you
are writing to, write it asthe first line of the
address.Include eitherthe person'sinitial/s or
his or her first given name,e.g.Mr LE.Smith or
Mr lohn Smith,Nor Mr Smith.
Counrr sy rrrrE s usedin addresses
areas
follows:
- Mr (pronounced/rmrsta/) is the usual
courtesy title for a man. The unabbreviated
form Mister should not be used.
- Mrs (pronounced/rmrsrz/, no unabbreviated
form) is usedfor amarriedwoman.
mrs/,not an
- Miss(pronounced/l
abbreviation) is usedfor an unmarried
woman.
- Ms (pronounced/mrzl or /mas/, no
unabbreviated form) is used for both
married and unmarriedwomen.It is
advisableto use this form of addresswhen
you are unsure whetherthe woman you are
vwiting to is married or not, or do not know
which title she prefers.
- Messrs(pronouncedltmesaz/, abbreviation
for French'Messfeurs',
which is never used)is
used occasionallyfor two or more men, e.g.
MessrsP.lones and B.L Parker,but more
commonly forms part of the name of a
company,e.g.MessrsCollier,Clark & Co.ltis
rather old-fashioned.
Other courtesytitles indude aca'demicor
medical titles, e.g.Doctor (Dr ),Professor(Prof.);
military title s,e.g.Captain (Capt.),Major (Maj.),
(Gen); and aristocratic
Colonel(CoI.),General
titles,e.g.Sir,Dame,Lord,Lady.Sirmeansthat
the addresseeis a knight, and is always
followed by afirst name,e.g.SirlohnBrown,
never Sirl. Brown or SirBrown.It should not be
confusedwith the saruran roN Dear Sir.
Esq.,abbreviationfor Esquire,is seldom used
now. It can only be used instead of Mr, and is
placedafter the name.Do not useEsq.and Mr
at the sametlme,e.g.BruceHill Esq.,NorMr
BruceH\IIEsq.
All these courtesy titles, exceptEsq.,are also
usedin salutations>seepage10.
!tffiaddrcss
o
@ 6May2o-
Its
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@ Compuvisionltd
WarwickHouse
WarwickStreet
ForestHiIl
Iondon SE23
lIF
.UK
alEdrcss
1
5
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line
@ DearSirorMadam
lruirn
fffdthe
letter
,Uclose
Itrrue
@ FortheattentionoftheSalesManager
@ Pleasewould you sendme detailsof your DVDvideo systems.
I am particular$interestedin the Omegarange.
@ Yoursfaithfully
@ B. Ka"a,eW
(Ms)B.Kaasen
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Note that a full stop is often used at the end
ofthe abbreviation ifit takes the form ofthe
first few letters of the word , e.g.Prof. (Professor)
,
but is not necessaryif it takes the form ofthe
first and last letter of the word, e.g.Dr (Doctor).
However,somepeoplepreferto write, e.g.Mr.,
Mrs.,with a full stop.Again, whatever you
chooseto do,you shouldbe consistent
throughout your correspondence.
Jobtitle known
If you do not know the name of the person you
are writing to, but know their job title, you can
usethat, e.g.The Sales
Manager,TheFinance
Diredor, in the inside address.
Departmentknown
Alternatively, you can addressyour letter to a
particular department of the company,e.g.Ihe
SaIes Department, TheAccountsDepartment.
>seeletter on page43.
Companyknown
Finally,if youknow nothing aboutthe
company and do not knowwhich person or
department your letter should go to, you can
simply addressthe letter to the company itself,
e.g.CompuvisionLtd,MessrsCoIIier,Clark & Co.
Orderof insideaddress
Afterthe name of the personand / or company
receiving the letter, the recommended order
and style of addressesin the UK is as follows:
- Name of houseor building
- Number of building and name of street,
road,avenue,etc.
- Name of torr'r-nor city and postcode
- Name of country
IndustrialHouse
34-4t CraigRoad
Bolton
at4 8rr
UK
In other Europeancountries,the number of the
building may be placed after the name of the
street.It is also common to substitute the name
of the country with an initial beforethe district
codenumber. Thesetwo examples are from
Italy and Germany ('Deufschland') respectively.
Facoltddi Medicina
ViaGentile$z
t-7otoo Bari
Lehrschulefilr Bodenkunde
Amalienstrasse
p-8oooo Mdnchen4o
It is simplest to follow the aboveorder and
style,though variations are possible:for
example the name of the county, e.g.
Lancashire,may,if known, be included onthe
line below the name of the town or city; the
postcodemay be written on a separateline; the
name of the tovun,as well asthe country,tnay
be in capitalletters >seealsopage14.
Attentionline
An alternative to including the recipient's
name or job title in the addressis to use an
ArrENTroN LrNx >seeletteronpage9.
Salutation
Dear Siropensa letter written to a man whose
name you do not know.
Dear Sirsis usedto addressa company.(In
American English a letter to a company usually
openswith Gentlemen.)
DearMadam is usedto addressa woman,
whether single or married, who;e name you do
notknow.
Dear Siror Madam (orDear Sir/ Madaml is
usedto addressa personwhen you do not
know their name or sex.Noticethat Ms Kaasen
in the letter on page9 usesthis form, i.e.she
doesnot assumethat the salesmanagerof
CompuvisionLtd is a man > seealsopage36.
Whenyou knowthe name of the personyou
are writingto,but do not knowthemwell, the
salutation takes the form of Dear followedby a
courtesytitle andthe person'ssurname.Initials
or first names are not used with courtesy titles,
e.g.DearMr Smith,xor DearMr I. Smith or
DearMr lohn Smith.Businessassociates
who
you knowwell can be addressedusing just
their first nam e,e.g.Dear lohn.
A comma afterthe salutation is optional, i.e.
DearMr Smith,or Dear Mr Smifh. (ln American
English a colon is usually used after the
salutation,e.g. DearMr Smith:,Gentlemen:).
Bodyof the letter
The blocked style is the one most often used for
the body ofthe letter. It is usual to leave a line
spacebetweenparagraphs.
Complimentary
close
If the letterbeginsDear Sir,DearSirs,
DearMadam,or Dear Siror Madam,lhe
coMplrME NTARycLo s E shouldbe Yours
faithfully.
If the letter begins with a personal name,
e.g.Dear Mr lames,DearMrs Robinson,or
Dear Ms Jasmin,it should b e Yourssincerely.
Aletterto someoneyouknowwell may
closewiththe more informalBest wishes.
Note that Americans tend to closeeven formal
letters with Yourstruly orTrulyyours,which
is unusual inthe UKin commercial
correspondence.
Avoid closing with old-fashioned phrases,
e.g.Weremain yoursfaithfully, Respectfully
yours.
A comma afterthe complimentary closeis
optional, i.e.Yoursfaithfully, or Yoursfaithfuny.
The complimentary closeis usuallyplaced
on the left, aligned under the rest of the letter.
5ignature
ID
o
Always type yolu narne and, if relevant,your
job title, below your handwritten signature.
Thisis known asthe srcwarunr srocx. Even
though you may think your handwriting is
easyto read,letterssuchas a,e,o,r, and v can
easilybeconfused.
It is,to some extent, a matter of choice
whether you sign with your initial/s,
e.g.D.Jenkins,or your full given name,
e.g.Davidlenkins,and whether you include
your courtesy title in your signature block as
in the letter on page 9. But if you include
neither your given name nor your title, your
correspondentwill not be able to identify your
sex and may give you the wrongtitle when he
or shereplies.
TITLE
STA TU S
C O M PIIM EN T AR Y
Mr
married or umarried male
Yourssincerelv
Mrs
married female
Yourssincerely
Miss
unmarriedfemale
Yourssincerely
Ms
married or unmarried female
Yourssincerely
Sir
male - name not known
Yoursfaithtully
Madam
female -name not knornm
Yoursfaithfully
Sir/Madam
when unsure whetheryou
are addressingmale orfemale
Yoursfaithfully
medical/academic/military
e.g.DrlProfessor/General
these titles do not changewhether
addressinga male or female
Yourssincerely
C LO SE
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L AY O U T 2 >
Opposite is the company's reply to the letter
from the prospective customer in Denmark.
It shows some more features of atypical
businessletter.
6
o
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Letterhead
The printed letterhead of a company gives a
great deal of information about it.
Typeof company
The abbreviationltd after a company's name
indicatesthat it has r,rrurrr p r,rasr rrry. This
means that the individuals who own the
company, or part of it, i.e.the shareholders,are
only responsible for their holding (i.e.the
capital they have contributed) if the company
goesbankrupt. In other words, it indicates to
people giving the company credit that in
bankruptrythey can only be paidback from
what the company owns, and not from the
personalfunds of its shareholders.
The abbreviationprc (nuat tc LIMrrED
cotte.a.Nv)is usedto showthat a company's
sharescan be bought and sold by the public,
unlike the sharesof private limitedliability
companies.In the USAthe term r.nrc.
(tNco ne onarro) is used.
CompuvisionLtd
SPWholesalersplc
Hartley-Mason Inc.
The abbreviationaar.a (*) co.indicates that
a company is a partnership between two or
more people. (And is usually vwitten as an
ampersand(&) in Englishcompany names.)If
the company is a family concern,Son/ s,Br os
(Brothers),orDaughter/s may be added.
Partnerships mayhave limited liability or
unlimited liability.
F.Lynch & Co.Ltd
R.Hughes&Son
Ifneitherltd nor & Co.appearafter a
company'sname,then it may be a sorr
TRADxR,i.e.a personwho owns and runs a
businesson their own.
Boardof Directors
The name of the chairman (inthe USA,the
president),who runs the concern,may be given,
as well as the names of the directors,who
decide the overall policy of the company.
The managing director (inthe USA,and
increasingly in the UK,termed the chiel
executiveoficer or cto),who takes an active
role inthe day-to-day running of the company,
may be mentioned if he or she is not the same
personasthe chairman.In the UK,the
chairman runs the Board of Directors while the
Chief ExecutiveOfficer runs the company.
Address
In addition to the addressof the office from
which the letter is being sent,the letterhead
may also give the addressof the head office or
registeredoffice,if different, andthe addressesof
any branchesor other officesthe company ornms.
Telephoneand fax numbers will also be
included and, if relevant, email andwebsite
addresseg.
A cable(telegram)addressmay also
be included. It is important to remember that
although the majority of companies are
connected to the Internet, there are many
countries where fax and cable are still
important ways of transmitting information
or, where banks are concerned,money.
Registerednumber
This usually appears in small print, sometimes
with the country or city in which the company
is registered.
IntheUK,thevar (varur aooro rax)
number may alsobe given >see,for example,
the letter on page56.
References
Rrrrnrrvcrsareoftenquotedto
indicate
what the letter refers to (Yourref.) and the correspondenceto refer to when replying (Ourref.).
Referencesmay either appearin figures,e.g.
66t/t7,where 66t may ref.erto the number of
the letter and rTto the number of the
department,or in letters,e.g.oslu.n,as inthe
letter on page r3,where os standsfor Donald
Sampson,the writer, and rrar for his assistant,
MaryRalmor.
o Comp$visionLtd
o
o
WarwickHouse
WarwickStreet
ForestHill
London
sE23lJF
Telephone
+44(o)zo8566r86r
Facsimile
+44(o)zo8566r385
EmaiI staff@comvis.co.uk
www.comvis.co.u
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Yourref. 6 May 20Yourref. DS/MR
Date llMay2O!,
Ms B.Kaasen
Bredgade51
DK1260
CopenhagenK
DENMARK
o
tr
N
DearMsKaasen,
Thank you for your enquiry.
I encloseour catdogue and price-list for DVD video equipment . Youwill
findfull detailsof the Omegarangeonpages 31-35.
Pleasecontact us if you have any fudher questions or would like to place
an order.
We lookforward to hearing from you.
Yourssincerely,
M*/ Ra/rwr
0
p.p.Donald Sampson
@ SalesManager
o
Enc.
Chairman JohnFranksoee.
lr.sc. N.lgnot R.LichensB.A
Dircctors 5.B.Allen
13
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Note that the Your Ref.in the letter on
page 13is a date,as Ms Kaasendid not give
any referencein her original letter.
6
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Perpro
6
Theabbreviationp.p.sometimesappearsin
signatureblocks.Itmeansnza eno,i.e.for
and
on behalfof, andis usedby administratorsor
personalassistants
when signingletterson
behalfof their managers.
e
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Job title
Whensendinga letteror emailon behalfof
your company,it is a goodideato includeyour
job title in the signatureblock,especiallyif
your recipienthasnot dealtwith you before.
Enclosures
If thereareany documentsenclosedwith a
letter,althoughthesemay bementionedin the
bodyof the letter,it is alsocommonto write
Enc.or EncI.belowthe signatureblock.If there
area numberof documents,
thesecanbe
listed,e.g.:
Enc.
B|IIof lading$ copies)
Insurancecertificate(t copy)
Certificateof origin A ropy)
B|IIof exchange(t copy)
LAYOUT3 >
Thefinal letterin this sectionshowssome
further featuresof a businessletter.
Private and confidential
5ubjee
t title
A suslrcr rrrr,r atthe beginningof aletter,
directly after the salutation,providesa further
reference,
savesintroducingthe subjectin the
first paragraph,immediately drawsattention
to the topicof the letter,and allowsthe writer
to referto it throughout.
It is not necessary
to beginthe subjecttitle
with Re.(with regard t o),e.g.Re.: Appli cationfo r
thepostof webdesigner.When
sendingemail
messages
this may evenbe confusingas.n.E
is
shortforreply>seepage48.
eopie:
When copiesare sent to people other than the
named recipient, c.c. (carao.rrrcoev) is added,
usually at the end of a letter, before the name/s
ofthe recipienti s ofthe copres.
Sometimes you will not want the named
recipient to know that other people have
receivedcopies.In thls case,B.c. c. (nt tNo
:ARBoN copv), and the name/s of the
recipient/s, are added on the copiesthemselves,
though not, of course,on the top copy.
Theseabbreviations are used in email, and
mean exactlythe same thing >seepage 21.
A D D R E S S IN G E N V E TOP E S
Envelopeaddressesare written in a similar
wayto inside addresses>seepages8-ro. But in
the caseof letters within or for the UK,the
name of the town and the country are written
in capital letters,and the postcodeis usually
written on a Iine by itself.
Mr G.Penter
49 MemorialRoad
OR P IN G?ON
Thisphrasemay bewritten at the headof a
Ietterand,moreimportant,on the envelope,
in
caseswherethe letteris intendedto be read
oniy by the addressee.
Therearemanyvariationsof this phrase,
e.g.Confidential,Strictlyconfi.dential,but
little
differencein meaning.
14
Kent
an6 9ua
MessrsWBrownlow
& Co.
6oo GrandStreet
LON D ON
w tN guz
UK
|D
Ltd
Comp*rvis{wm
o
WarWick
House
WarwickStreet
ForestHill
London
sE231JF
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o
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=
A
o
Telephone
+44(o)zo8566r86r
Facsimile
+44(o)zo8566r385
k
Emailslaff@comvis.co.u
k
www.comvis.co.u
3
!,
Yourref.
Yourref. DS/MR
Date 21September20Ms B.Kaasen
Bredgade51
DK1260
CopenhagenK
DENMARK
l! Privateand
confidential
!J
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rl,
o Private and confidential
DearMsKaasen
@ Subjecttitle
I
o
Non-palrment of inv oice 322| L7
It appearsfrom our recordsthat, despite severalreminders,the above
invoice remains unpaid. Unlessthe account is clearedwithin 14daysfrom
the date of this letter,we shalltake legal action.
Yourssincerely
tt
00lUld, JAJ4,W)ru
Donald Sampson
SalesManager
@ Copies
@ c.c.MessrsPoole& JacksonLtd,Solicitors
C hai r m an
Directots
J ohn F r ank soer
S B Allen M-sc- N.lgnot R.LichensB.A
15
14
Faxes
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I N T R OD U C T IO N
Preparin
g for transmission
Theword/ax comesfromlfacsimile,which
meansan exactcopyor reproduction.Iike
email,thewordfax canbeusedas a noun,
e.g.IsentaJaxor asa verb,e.g.Wewillfax
you when we have the inJormation.
A fax messageis usefui when speedis
important and the recipientdoesnot have
email.It is especiallyusefulfordocuments
containing diagramsor drawings.Likeemail,
a fax can be sent quickly to many different
recipientsat the sametime. However,again
like email,fax is an open system,i.e.
correspondence
can easilybe accessed
by
outsiders,so it shouldnot be usedfor
confidential information.
When sendinghandwritten fax messages,
use a dark colourand make your writing large
and clear.
As faxesare copiesof documents,they
cannot be usedwhen the originals are
required.Forexample,an originalrrrr or
LADTNG
givesrrrlr to goods(i.e.you would
own the goodsif you had the bill in your
possession),
and would not be valid if it were a
faxed copy.
Faxeshavebeen'courttested',and they tend
to be acceptedin legal cases,along with letters,
as evidencein certain areasof international
trade.However,an email containing similar
information might not be consideredvalid
under certain circumstances.
Difierent fax machines offer a wide range
of facilities,including repeatdialling if the
receiver'sfax machine is engaged;a
transmissionreport which givesdetailsof the
time, date,sender,receiver,number of pages,
duration, and result; a verification mark at the
foot ofthe pageto confirm the fax was sent;
and a number memory for frequently used
numbers.Checkthe manual of your fax
machine to find out what functions it can
perform.
It is alsopossibleto senda fax from a
computer.
Checkthat you have the correct fax number.
Checkthat the paperon which your messageis
printed or written is suitable.If it is too big,too
small,or in poor condition,photocopythe
messageon paperthat can be acceptedby the
fax machine.Beforeusing the machine,check
that you know how to dial, cancel,cleara paper
jam, and send.
When you senda fax it is a goodidea to use a
fax transmissioncoverform. This will help to
ensurethat the fax reachesits i.ntended
recipient safely.Most companiesusetheir own
headedfax transmissionform, but you can
easilycreateone for yourself,e.g.:
BRrrrsHcnvsrtt Ltd.
GlazierHouse
GreenLane
Derby
D E 1 7R T
FA X ME S S A GE
To:
From:
Fax no.:
Subject:
Date:
Page/s:
S TY TE
Generally,faxesare similar to lettersin style,
Ievelof formality, andthe use of conventions.
However,a fax may be shorterand the
Ianguagemore direct,likean email,asthere
is a time element in the costof sendingthem.
As with email messages,
bewareof using too
informal a tone with customersor suppliers
you do not know well.
F. Lynch & Eo. Ltd
HeadOffce
NessonHouse
NewellStreet
Birmingham
833EL
Telephone:+44 @lzt 46 657r
Fax:+44(o)21458592
Email:pcrane@lynch.co.u
k
www.lynch.com
Adviceof damaged
consignment
F
o
5
Thisfax isfrom Lynch
f
x
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a
& Cqwho received
_9
damaged
coHsrcNMENT !,
=
andweretoldbytheir
o
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5atex5.p.A.,
to
supplier,
3
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page
returnit >see
ro6.
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Fnx messuqe
To
D.Causio,SatexS.p.A.
From
L.Crane
tn
x
Faxno. (06)481,5473
Subject Replacementof damagedorder no.7UI8
Date
19October20-
Pagels 1
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This is an urgent request for a consignment to replacethe aboveorder,
which was damaged during delivery. We informed you about this in our
letter of 15September.
Pleaseairfreight the following items:
Cat.No.
R30
R20
N26
O_uantrty
50
70
100
The damaged consignment will be retumed when we receivethe
replacement.
?eh/ Aa*t"o
PeterCrane
ChiefBuyer
17
J4
o
frrponr to
lmportr/r cnqulry
!
Thisisafaxfrom
BritishCrystalto their
rc errs,5.A.lmporters,
in SaudiArabia
>see
correspondence
on
pagesrT4-176.
Thisfax isquite
formalin styleasthe
companies
havejust
startedtheirbusiness
relationship.
Notice
how Mr Oliver'sells'
the producttothe
importers.rSeealso
BdtishCrystal'sfaxed
enquirytoUniversal
Airwaysandthe letter
replyonpagesD4-r95.
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TET E P H o N +4
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: 4 (o)r3325r977
Email:oliverh@crysta
l.com. www.britishcrystal.com
FAX MESSAGE
To
S.A.Importers
From
H.Oliver,MarketingManajer
Faxno. (966)1 34981
Subject FrenchEmpire designs
Date
Page/s 5,includingthisone
16August 2G-
Thank you for your enquiry about our FrenchEmpire range of drinking
glasses.There is a revival ofinterest in this period, so we are not surprised
that these products have becomepopular with your customers.
I am sendingwiththisfaxpp.l-4
of our cataloguewith CIFRiyadhprices,
as you saidyouwould lil<ean immediate previewof this range.Iwou-ld
appreciateyour comments on the designswith regard to yow market.
I look forward to hearing from you.
H. Olin?l
H.Oliver(Mr)
Marketing Manager
r8
Faxaccompanying
an order
Fax
&&$Ewm&mrru
ffixpXm**ffi&Awx3
ffimxvnpffiryruW
BlockD.5urulerelndustrialRoad
Ogb a. lk eja. Lagos
Telephone(+44) t 4836o829/4/ 5
Facsimile(44) t 4837oot
I
With this fax,an
importeris sending
an officialorderand
for the
specifications
d r i l l sh e r e q u i r e s.
He
s a y s t h a t a c o N Fr R M ED
L E T T EoRF c n eo r r w i l l
be openedoncehe has
t h e s u p p l i e r 's
C OM M ER C IAL
To JohnMalcovitch,ChiefEngineer
From TosinOmosade,United Drilling Inc.Managing Director
Fax 273-890-0740
Topic Drilling Heads
No.ofpages1-5
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INV O I C E .
Noticethat the fax is
copiedto his company's
accountant,and alsothe
chiefengineer.
ltt
xt
3
E.
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c.c. KwameAdeole(Accountant)
Vidal Lamont (ChiefEngineer)
,
Pages2-4 ofthis fax are specificationsfor the exploration drilling heads
that we discussedon your visit herein October.Couldyou pleasesupply
theseheadsas soonaspossible?
I am alsosendingour official OrderNo NI f2O-1046.Ishall make
arrangementsto open a confirmed letter of credit with the Nigerian
International Bank as soon asyou have sent me your invoice and details of
shipment.
I look forward to hearing from you.
Tosin0runsa"dp
TosinOmosade(Mr)
Managing Director
r9
Emails
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IN T R OD U C T IO N
Email (shortf.oreleetronicmcil) is a means of
sendingmessagesbetween computers.
To send and receiveemail you need accessto
the Internet. An Internet ServiceProvider (rs n)
will provide you with connection software,
which is often free. This will give you Internet
access,storagefor incoming mail, and the
capqbilityto read your messages.Finally,you
need email software, generally already
installed in modern computers,so that you can
write, send,receive,and readmessages.
Ad v a n ta g e r
Thereare numerous advantagesto email.It is
personaland easyto use.It can be usedboth
within and between companies,and is an
effective wayto communicate quickly and
easily with people all over the world. It is
especiallyuseful for short messagesand for
everydaycorrespondence,
e.g.setting up a
meeting, passing on information, and making
or replying to a request.
Youcan pick upyour email messages,
even when you are travelling, via a laptop or
palmtop. With compatiblesystems,youcan
accesstext and graphicdocuments,and
spreadsheets.
And whatever you sendor
receivecan be quickly and easily filed.
D i s a d v a n ta g e s
The disadvantagesof email include technical
problemswhich may result inthe unexpected
non-deliveryof messages,or attachments
arriving in unreadable form. A non-technical
disadvantageis that, paradoxically,the ease
with which messagescan be sent resultsin
Iarge amounts of 'junk' and unnecessary
communication, which waste time.
As with faxes,a major drawback is the lack
of privacy and security. Do not use email to
communicate confidential information. It is
sometimessaidthat an email messageis like
a postcard - anyone can read what you have
written. However, digital signing and
encryption (coding data, so that it can only be
read by authorizedusers),which both work
along similar lines,make email more secure.
E mai l and other formr of
correrpondence
Thereare severalareasofbusiness
communication where more traditional forms
of correspondenceare still the most suitable.
For example,personaland sensitive
correspondencesuch as messagesof
congratulation, condolence,or complaint are
usually best done by letter. Confirmation of
contracts,memos which are confldential and
must be signedto acknowledgereceipt,and
which may be neededfor
any correspondence
purposes
should not
legal or insurance
normally be sent by email. You might find a job
on the Internet,but most companieswould
still expectyour applicationto consistof a
completed form with a covering letter.
E mai l addreres
Typical email addressesIook like this:
dfranks@intchem.co.no
corneyg@kingsway.ac.uk
The first part of the email addressis usuallythe
surname and initial of the person you are
contacting, or the name if itjs a department, or
a shortenedversion ofit. The secondpart,
which appearsimmediately after the @(at),is
the name of the rsn or organization,or again
an abbreviation of it. Usually,the last part of
the addressincludesthe domain name suffixes
referring to the type of organization(e.g.'.co'
for'company','.ac'('academic')for a university)
and to the country from which the message
was sent (e.g.'.no'forNorway,'.uk'for the
UnitedKingdom).
Other examples of domain name suffixes
referring to types of organizationinclude:
.biz business
.gov governmentofice
.org non-profit-makingorganization
(e.9.a charity)
.pro profession(e.g.medicine,Iaw)
If the name of a country in its main language
differssignificantlyfrom its name in English,
this is reflectedin its domain name suffx, e.g:
.de
.es
.za
Deutschland(Germany)
Espafia(Spain)
ZuidAfrika (SouthAfrica)
Attachments
Iconsof anyarrAcHMENrs will appearhere.
The amount of header information, and the
orderin which it appears,will vary according
to the software being used,so do not worry if
the messagesyou sendand receivedo not look
exactlylike the one in the example.
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Belowis a typical email message.
i1'.,tLlIt
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lllIll
Theheadergivesessentialinformation about
the message.Inaddition to the basicdetails
shown in the sampie,it may include:
c.c.
This standsfor carboncopies,which means
much the sameas it doeson a letter
r.seepage14.Hereyou insert the email
addressesof anyoneyou want to sendcopies
of the messageto.
b.c.c.
This standsfor blind carboncopies,which, as
in a letter,you shoulduseif you do not want
the main recipientto know who has received
copres>seePage14.
\1 ' ' ,' rr' ,' 1,1' t
Thepresentationof the text in an email is
usually lessformal than in a letter.In this
exampleMs Kaasenhas usedthe formal
DearSir/ Madam,but shecould simplyhave
headedher m essageForthe attention of the
SalesManager.Ratherthan ending with
Yoursfaithfully,sheusesthe lessformal
I lookforwardto hearingJromyou.
\,'r r - r t11i ,
This is like the signatureblock in a letter,
although it usually includesmore details,e.g.
the sender'scompanyor private address,and
telephoneand fax numbers.Youcan program
your email softwareto add your signature
automaticaliyto the end of outgoing
messages.
I H e a derinf or m at ion
Subject:
', I Messagetext
f) D e a rSi r/ M a d a m
Pleasewouldyou sendme detailsof yourquadsoundsystems,advertisedin the
Aprileditionof 'SoundMonthly'?
I am particularly
interestedin the Omegarange.
I look fonvardto hearingfrom you.
r I Si g nat urbloc
e
k
O BeatrixKaasen(Ms)
Bredgade51
D K 12 6 0
CopenhagenK
Tel/ Fax:(+45)741583
Email:kaasenb@intertel.net,dk
14
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ST Y tE
Errr.ri | .rbbrcvr.rti orrr
Email is a relatively recent development, and
becauseit is perceived as a quick and informal
means of communication, people are often
unclear about the style and conventions they
should use in businesssituations.
As a general rule, although email
correspondencemay tend towards informality,
it shouldfollowthe sameprinciples as any
other form of businesscorrespondence.
Here are somebasictips about style:
- In general,email messagesfollow the style
and conventionsusedin letters or faxes.For
example,youcanuse salutationssuch as
DearMr Pintoor DearTom,and
complimentary closessuch as Yourssincerely
or Bestwishes.
However,if you knowthe
recipient well, or if you are exchanging a
seriesof messageswith one person,you may
dispensewith the salutation and
complimentary close.
- Do not confusepersonalmessageswith
businessmessages.Ina businessmessage,
the same rules of writing apply as for a
Ietter: write clearly,carefuIly,and
courteously;consideraudience,purpose,
and tone.
clarity,consistency,conciseness,
- Usecorrectgrammar,spelling,
capitalization, and punctuation, as you
would in any other form of correspondence.
- Do not write words in capital letters in an
email message.This can be seenasthe
equivalent ofshouting andtherefore have a
negative effect.If you want to stressa word,
put asteriskson eachside of 1t,e.g.*urgent*.
- Keepyour email messagesshort and to the
point. Peopleoften receive a Iot of emails at
work, so concisenessis especiallyimportant.
- In general,limit yourself to one topic per
message.This helps to keepthe message
brief and makesit easierfor the recipient
to answer,f,le, and retrieve it later.
- Checkyour email messagefor mistakes
beforeyou sendit, just as you would check
a letter or a fax message.
TLAs(three-letteracronyms)
In orderto keep email messagesshort,people
sometimesuse abbreviationsfor common
just asthey do in text messaging.
expressions,
Theseare known asTLAs (three-letter
acronyms),although someof them are more
than three letters long.Here is a list of some
of the most commonlyused TLAs:
E
!
o
tr
t!
5
o
x
e
o
o
AFAIK
BFN
Brw
coB
FYr
row
NRN
oroH
asfaraslknow
byefornow
bytheway
closeofbusiness
for your information
inotherwords
no reply necessary
ontheotherhand
UseTLAs with great care,and onlywhen
you have estabiished a friendly, informal
relationshipwith your correspondent.They
should not be be usedin letters and faxes.
Emoticons
Emoticons(a combination of the words
emotion andicon),alsoknow as smileys,are
often usedin informal email correspondence.
They expressemotions which may not be
evident from the words alone,e.g.:
a smile
-)
afrown
-(
;) aw i nk
On the whole. it is better not to usethem in
businessmessages,asthey may be considered
unprofessional, especially ifyou do not know
the recipient weII or are not sure that he or she
will understandthem.
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I PeterLane
-I
Refitof HaltonRoad store
Planof oremises
list
Architect'sdrawinos
r,Vith
this morning,I wouldlikeone of your
referenceto our phoneconversation
representatives
to visitour storeat 443 HaltonRoad,London,SE4 3TN,to givean estimate
for a completerefit.Pleasecouldyou contactme to arrangean appointment?
Hereis an exampleof
a n e m a i la s k i n g f o r an
EsrtMATEto refit a
store.There
arethree
attachments.Notice
that the email is q u ite
short.lt is acceptable,
as here,to omit the
salutationand the
complimentaryclose
w h e n t h e s e n d e ra n d
recipienthavebeenin
touch with eachother
previously.
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As I mentionedon the phone,it is essentialthatwork is completedbeforethe end of
February20-, and this would be statedin the contract.
I attachthe plansand specifications.
JeanLandmpn(Ms)
Assistantto K. Bellon,ManagingDirector
SuperbuysLtd,SuperbuyHouse
WolvertonRoad,LondonSW167DN
Tel.:020 8327 1651
Fax: 020 8327 1935
j.landman@superbuys.com
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tulakf,ng
arrangements
for
an estimate
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PeterLanerepliesto
Jea nLa nd mancop
, yi ng
the messageto the
surveyor,John
Pelham.
Noticethat this message
fulf ls the requirements
for correspondence
dealin gwith an e nq uir y ,
i.e.the replyis sentas
soonas possibleand
coversthe points
me ntio ne din th e
enquiry.Thestyleis
quite info rmalb ut still
politea nd b usine sslik e.
The lettersRE:appear
beforethe subjecttitle
in th e h ea de r
information.This
indicatesthat PeterLane
hasselectedthe'reply'
opt io n.Theo rigin al
messageappearsbelow
his reply.
Refitof HaltonRoad store
Dear Ms Landman
Our surveyor,
John Pelham,is availableto inspectthe premisesand discussyourexact
requirements.
Couldyou pleasecontactJohnon jpelham@wemshop.com,
or on his mobile
(7129289541),to arrangea convenienttime for him to visitthe store?
Fromyourattachedspecifications,
I estimatethe work couldbe completedwithinthe time
you give,and we wouldbe willingto sign a contractto this effect.
Peter Lane
Director,WembleyShopfittersLtd
WycombeRoad,Wembley,MiddlesexHAg 6DA
Teleohone:
020 8903 2323
Fax:020 8903 2349
Email:plane@wemshop.com
- OriginalmessageFrom: Jean Landman
To:
PeterLane
Subject: Refitof HaltonRoad store
Dr :a l L 4 t N-ir
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V\i ih r e le r e n ce [u c) L np l rorre conve;tserti otrtfns rr]i )r rri !t, l w rrrri r.l l i he one oi t,o,rr
r r ir r csd r - ltd lve s[DVr sr to uIsturc;rt
214-i l -l al i l rr ]-i i i :i i i t..,rrrj otr i ,.L-4i i i l !,Lc,gi v*arI
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i:sIir ila ilu tr ,r ra i cOiltp le te rel i t P teerse cti Lrl t.iyl rLr i .r,rrtl l tcli Ttc i o al r[i ]i l 1{Jrl
,/!r .;I r ir L iiL i.;le d o r r iir e 6.rl ronc.i i r:; esserrl i ;tl l l r.rt w oi i l r j s i r()l ri l l c.ted bei ore i i re erLl trl
I r i.ll L t.lt,, ,,4 - . a t r cl L iliSl;,V Oftl Cl tt.:
l r,t:.atl rlldrt ti l ,.j (l {.}li l /trr-'L
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Askingfor
informatIon
A c o m p a n yh a se m a i l e d
oF
t h e i r l o c a l c H A M B ER
c o M M ER c Et o a s kf o r
someinformationabout
their prospective
D rs r R rB U T o R s , S ato
In c.
In this reply,theanswers
g i v e nb y t h e c h a m b e r o f
commercehavebeen
insertedat the relevant
p o i n t si n t h e o r i g i n a l
are
message.They
precededby the'>'
symbol.
rArial
RE: Sato lnc
DearMr Rubain
> Pleasefind answersto your queriesbelow.
How longhasthe companybeenin business?
> The companyhas tradedfor 24yearsunderits currentname.
How manyshowroomsdoes it have?
> lt has a chainof 30 showroomsthroughoutthe country.
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What is its turnovereveryyear?
> lts registered
turnoverthisyearwas $410million.
Will its productscompetewith mine?
> lt specializes
in foreigncars- yourswillbe uniqueto yourcountry.
How is it regardedin Japan?
> lt has an excellentreputation.
I hooethisinformation
is useful.
KyokoMamura(Ms)
Assistantto TradelnformationOfficer
SakuragiBldg,MinamiAoyama,Minato-ku,
Tokyo109
(+61;
Tel:
3 45076851
Fax:(+31;3 45078890
Email:mamurak@tcha.com.jp
25
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Mr Cliffo f Home m ak er s
is a furnitu re
ma nu facturear nd
sup plie sMr Hug hes ' s
shopwith a wide range
of g oo ds.In th is
examp le,Mr Hug hes
wantstwo new products
Actions Hetp
ON A P P R OV A T .
Cat. Nos KT3 and KT14on approval
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DearMr Cliff
x
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A lot of customershavebeenaskingaboutyourbookcaseand coffeetableassemblykits
(abovecat. nos).We would liketo test the marketand have6 sets of each kit on approval
beforeplacinga firm order.I can supplytrade referencesif necessary.
I attacha provisional
order(No.81463)in anticipation
of youragreement.Thereis no hurry,
so you can sendthesewithyournextdeliveryto Swansea.
Manythanks
RobertHughes
R. Hughes& Son Ltd
Tel:0179258441
Fax:0179259472
E m a i l r.h
: u g h e s @ h uson.com
Wh y d oe sMr Hughes
want the goodson
approval?
z6
What doesMr
Hughest hink m ight
be requiredto get
goodson approval?
Wh a t s o r t o f o r d e r
hasbeensent,and
how hasit beensent?
, r l s t h i sa n u r g e n t
request?
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Replyto request
for goodson
approval
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DearMr Hughes
m
Thankyou for yourenquiryaboutour assemblykits.We'dbe pleasedto sendyou 6 of each
on approval.They shouldbe with you by noon on Monday.
There'sno needto supplyreferences.
The provisional
order(81463)you sentis sufficient,
but pleasereturnany unsoldkits in two months.
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Let us knowif we can be of anyfurtherhelp.
RichardCliff
Director,HomemakersLtd
54-59 Riverside.
CardiffCF1 1JW
Directline:+44 (0)2920 49723
Fax'.+44 (0)29 20 49937
Email: rcliff@homemakers.com
1 DoesMrCliffagree
to sendthe goodson
approval?
2 Whatsortof
are
references
required?
3 W h atshoul dMr
H u g hes
dow i thany
unsoldkits?
4 What phrasedoes
Mr Cliff useto offer
more helo?
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27
Pointsto remember
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Letters
E ma ils
Many of thesepoints applyto faxesand emails
aswell.
1 Email is very fast and effective,but there are
areaswhere it is preferableto useletters,e.g.
personal,confldential,or legal
1 The layout and presentationofyour letter
are important asthey givethe recipientthe
flrst impressionof your company's
efficiency.
2 Write both the sender'sand the recipient's
addressin asmuch detaii aspossibleand in
the correctorder.
3 Make sureyou usethe recipient'scorrect
title in the addressand salutation.If in doubt
asto whether a woman is singleor married,
useMs.
4 Do not write the month of the datein
f.gures.
5 Choosethe correctsalutationand
complimentaryclose:
DearSir/ Madam with Yoursfaithfully
DearMr / Ms Smith with Yourssincerely
6 Make sureyour referencesare correct.
7 Make sureyour signatureblocktells your
readerwhat he or sheneedsto know about
you.
Faxes
1 Faxis an open system,soit shouldnot be
usedfor confldentialcorrespondence.
2 Write clearlywhen sendinghandwritten
messages,
3 Faxesarecopies,and cannotbe usedwhen
original documentsare required.
4 Prepareyour transmissioncarefullybefore
you sendit.
5 In general,the languageof faxesis much like
that of letters,although faxescan be briefer
and more direct,likeemail messages.
z8
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2 Email addresses
usually givethe name of the
personor department,then the @(at)
symbol,followed bythe name of the
company or institution, and flnally the
domain names,which indicatethe type of
organizationand the country from which
the messagewas sent.
3 Thelanguageof emailscan be quite
informal, but if you do not know the
recipientwell, it is better to keepto the usual
writing conventions.Youcan becomemore
informal asyou establish a working
relationship.
4 It is possibleto use specialabbreviations,e.g.
tres and emoticons,but do not confuseyour
recipientby using abbreviationshe or she
may not know or understand.
3o
3o
31
31
32
32
32
33
33
33
33
34
34
34
35
36
36
36
36
36
36
36
36
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37
L ENGTH
Toolong
Tooshort
T h eri ght l ength
o R D E RA N D S E qU E N C E
U n cl earsequence
C l e arsequence
PL AN N IN G
Firstparagraph
Middleparagraphs
Finalparagraph
ST YLE A N D LA N C U A C E
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Si m pl i ci ty
Courtesy
l d i omsand col l oqui all anguage
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A b b revi ati ons
and i ni ti al s
N u m bers
P re posi ti ons
ACC U R A C Y
Sp el l i ng
T i tl es,names,and addresses
References
Prices,
measurements,etc.
E n cl osures
and attachments
Pointsto remember
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tE NG T H
All correspondenceshould be long enough to
explain exactlywhat the senderneedsto say
and the receiverneedsto know. You must
decidehow much information you put in the
Ietter:you may give too much *see the letter
on this page,in which caseyour letter will be
too long, or too little ' seethe letter on page3r,
in which caseit will be too short.Your style and
the kind oflanguage you use can also affect
the length.
The following three letters are written by
different peoplein reply to the same enquiry
from a Mr Arrand about their companv's
products.
l . ) ( - ) l i i j l f.
Thereare a number of things wrong with this
letter. Though it tries to advertisethe products,
and the company itself, it is too wordy. Thereis
no needto explain that storesare buying in
stockfor Christmas- Mr Arrand is aware of
this. Ratherthan drawing attention to certain
items he might be interestedin, the letter only
explains what he can alreadysee,that there is
a wide selectionof watches in the catalogue
coveringthe full range of market prices.In
addition,the writer goeson unnecessarilyto
explain which countriesthe company sellsto,
to give its history, and to quote its rather
unimpressivemotto.
3o
DearMrArrand
Thank you very much for your enquiry of 5 November which we
receivedtoday.Weoften receiveenquiriesfrom large storesand
always welcome them, particularly at this time of the year when
we knowthat you will be buying in stockfor Christmas.
We have enclosedour winter catalogue and are sure you will be
extremely impressedby our wide range of watches.Youwill see
that they include rangesfor men, women, and children,with prices
that should suit all your customers,from watches costing only a
few pounds to those in the luxury bracketpriced at several
hundred pounds.But whatever price bracketyou are interestedin,
we guaranteeall our productsfortwo years.
Enclosedyou wiII alsofind our price list giving full details of prices
to London (incluslveof cost,insurance,and freight) and explaining
our discounts, which we think you will find very generous and
which we hope you will take full advantage of.
We are always availabie to offer you further information about
our productsand can promise you personalattention whenever
you require it. This serviceis given to all our customersthroughout
the world, and as you probably know we deal with countries from
the FarEastto Europeand Latin America,This fact alone bearsout
our reputation,which has been establishedfor more than a
hundred years and has made our motto 'Time for everyone'familiarworldwide.
Once again, may we thank you for your enquiry and say that we
look forward to hearing from you in the near future?
Yours sincerely
-ac s hor t
lhere are a number of problems with this
-etter:
I It shouldhavebegunDearMr Arrand and
endedfours sincerelyasthewriterknew Mr
Arrand's name from his letter of enquiry.
6
DearSir
Thank you foryour enquiry. We have a wide selectionof watches
which we are sure you will like. We will be sending a catalogue
soon.
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Yoursfaithfully
2 Neitherthe datenorthe referencenumber
ofthe enquiry are quoted.
3 Ideally,a catalogueshouldbe enclosedwith
a replyto an enquiryabout a company's
productsor indication of a websiteif the
companyhasone.
2
4 When a catalogueis sent,attention should be
drawn to items which might be of particular
interestto the enquirer.New productsshould
alsobe pointed out.
5 A pricelist shouldbe includedif pricesare
not given in the catalogue.Any discounts
shouldbe quotedand,if possible,delivery
dates.
T he r ight lengt h
Hereis a more suitableletter.It is neither too
short nor too long. It provides all the relevant
information Mr Arrand might need,and draws
his attentionto somespeciflcproductswhich
may be of interestto him.
. Seepage33for the planforthis letter.
Dear Mr Arrand
Thank you for your enquiry of 5 November.
We encloseour winter catalogue,and a price list giving details of
CIFlondon prices,discounts,and deliverydates.
Though you will seewe offer a wide selectionof watches,may we
draw your attention to pp.23-28,andpp. 31-36,where there are
styleswe think might suit the market you describe?On page 25you
will flnd our latest designsin pendant watches,which are already
sellingwell.
All our products are fully guaranteed,and backedby our worldwide
reputation.
If you need any further information, pleasecontact us.We look
forward to hearing from you soon.
Yourssincerely
31
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o RDE R A ND S Eq U EN C E
As well as containing the right amount of
information,yourletter shouldalsomake all
the necessarypoints in a logicalsequence,
with eachidea or piece of information linking
up with the previous one in a pattern that can
be followed. Do not make a statement, switch
to other subjects,then referbackto the point
you made a few sentencesor paragraphs
before,asinthe example.
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This Ietter is difficult to understandbecause
there is no clearsequenceor logicalorder.
DearSir / Madam
We are interested in your security systems We would like to know
more about the prices and discounts you offer.
A businessassociateof ours,DMS (Wholesalers)
Ltd,mentioned
your name to us and showedus a catalogue.They were impressed
with the security system you installed for them, so we are writing
to you about it. Do you give guaranteeswith the installations ?
In your cataloguewe saw the Secure15which looks asthough it
might suit our purposes.DMShad the Secure18installed,but aswe
mentioned, they are wholesalers,while we are a chain of stores.We
would like somethingthat can preventrobberyand shoplifting,so
the Secure15might suit us.
How long would it take to install a system that would serveall
departments?Couldyou sendan inspectoror adviserto seeus soon?
If you can offer competitive prices and guaranteeswe would put
your system in all our outlets, but initiallywe would only install
the system in our main branch.
We would like to make a decision on this soon,so we would
appreciatean early reply.
Yoursfaithfully
e let r ! ef lut . r r cr,
Hereis a better versionof the sameletter.in
which the ideas and information are in a
logicalorder.
DearMrJarry
We are a chain of retail storesand are looking for an efficient
securi\r system.Youwere recommendedto us by ow associates,
DMS (Wholesalers)Ltd,for whom you recently installed the Secure
18alarm system.
We need a system which would give us comprehensiveprotection
against robbery and shoplifting throughout all departments, and
the Secure15featuredin your current cataloguewould appearto
suit us.However,it would be helpful if one of your representatives
could visit us sothat we can discussdetails of the availablesystems.
Initially we would test the system we selectin our main branch,
and, ifit proves satisfactory install it throughout our other
branches.Our choicewould, of course,be influenced by a
competitive quotation and full guaranteesfor maintenance and
serVIce.
Pleasereply assoonaspossibleaswe would like to make a decision
withinthe next few months.
Yourssincerely
,2
P tAN N I N G
l Mi dd[e B aragnapefrs
The way to make sure you include the right
amount of information,and inthe right order,
is by planning.Ask yourselfwhat the purpose
of the letter is,and what responseyou would
Iike to receive.Note down everything you want
to include beforeyou start writing, then read
your notes to checkthat you have included all
the necessaryinformation, that it is relevant,
and that you have put it in the right order.
Here,for example,is the plan for the letter on
page31.
The main part of your letter will concernthe
points that needto be made,answersyou wish
to give,or questions you want to ask.As this
dependson the type of letter that you are
writing, thesetopicswill be dealtwith in later
units.ln the middle paragraphs,planning is
most important to make sureyour points are
made clearly,fuily, and in a logicalsequence.
rtpara. Acknowledgeenquiry
znd para. Enclosecatalogue,price list
3rdpara. Draw attentiontowatches
suitableJor Arrand,and latest
designs
4th para. Mention guaranteesand
reputation
5th para. Encourage
Jurther contact
Firc'tXra
ragna6"rh
The opening sentenceor paragraphis
important asit setsthe tone of the letter and
createsa flrst impression.Generallyspeaking,
you would thank your correspondentfor their
Ietter (if replying to an enquiry),if necessary
introduce yourself and your company,state the
subjectofthe letter,and setout its purpose.
Here aretwo examplesof openingparagraphs.
- Thankyouforyour enquirydated8IuIy in
whichyou askedus about our rangeof
Asyou probablyknowfrom our
cosmetics.
advertising,weappealto awide agegroup
Jrom the teenagemarketthrough to more
mature women,and our productsare retailed
in leadingstoresthroughoutthe world.
- Thankyoufor your letterof tg August,whichI
receivedtoday.Wecan certainly supplyyou
with the industrialJloorcoveringsyou asked
you willfind a catalogue
about.Enclosed
illustrating ourwide rangeof products
currentlyusedinfactoriesand ofices
throughoutthe world
Ffi mnIparagraph
At the end of your letter, if it is a reply and you
have not done so at the beginning, you should
thank your correspondentfor writing. If
appropriate,encouragefurther enquiriesor
correspondence,
mentioning that you look
forward to hearingfrom him or her soon.You
may want to restate,briefly, one or two of the
most important points you made in the main
part of your letter.Here are someexamplesof
final paragraphs.
- Onceagain thank youfor writing to us,Please
contactus if you would Iikeanyfurther
information.Tosummarize:aIIpricesare
quotedcrc Yokohama,deliverywouldbesix
weeksfrom receiptof order,and payment
shouldbe madeby bank draft I lookforward
to hearingfromyou soon.
- Ihope I havecoveredaII the questionsyou
asked,butpleasecontactme if thereare any
other detailsyou require.If you would like to
placean order,may I suggestthat you do so
beforethe end of this month sothat it can be
met in good timefor the start of the summer
season?
I hopeto hearfromyou in the near
ar
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future.
- Weare confidentthat you havemadethe
right choiceas this line is a leadingseller.If
thereis any adviceorfurther informationyou
need,we would be happyto supplyit,and look
forward to hearingfrom you.
33
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S TYLE AND L ANG UAG E
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Commercialcorrespondence
oft en sulTers
from an old-fashioned,pompousstyleof
Englishwhich complicatesthe messageand
givesreadersthe feeling that they are reading
something written in an unfamiliar language.
In this letter, all the writer is trying to do is
explain why he delayedpaying his account
but, becauseofthe style,it is too long and is
difficult to understand.
DearSir / Madam
I begto acknowledgereceiptofyour letter ofthe 15thinst. in
connection with our not clearing our account,which was
outstandingas ofthe end ofJune.
Pleaseacceptour profuseapologies.We were unabie to settle
this matter due to the sudden demise of Mr Noel, our Accountant,
and as a result were unaware of those accountswhich were to be
cleared.We now, however,have managed to trace all our
commitments and take pleasurein enclosing our remittance
for L2,12O,whichwe trust will rectify matters.
We hopethat this unforeseenincident did not in any way
inconvenienceyou,nor leadyou to believethat our not clearing
our balanceonthe due datewas an intention on our part to delav
payment.
We remain, yours, etc . . .
Hereis a simpler versionof the letter.Mr
Aldine will be satisfiedwith it becauseit tells
him - simpiy and clearly - what he wants to
know.First,his customeruseshis name.
Second,he has apologized.Third,Mr Aldine
knows his was not the only account that was
not paidwhen due,and knows why. Finally,he
has his cheque
DearMrAldine
I am replying to your letter of 15July askingus to clearour June
balance.
I apologizefor not settling the accountsooner,but dueto the
unfortunate death of Mr Noel,our Accountant, there have been
delaysin settling all of our outstanding balances.
Pleasefnd enclosedour chequeforL2,720,
and acceptour apoiogies
for any inconvenience.
Yourssincerely
Lot/ r l r ' \ \ '
DearMrRohn
Your style should not, however,be so simple
that it becomesrude.Hereis an exampleof a
letter that is too short and simple.
I've already written to you concerning your debt of f 1,994.This
should have been clearedthree months ago.You seemunwilling to
co-operatein paying us We'll sueyou if you do not clear your debt
within the next ten days.
Yours.etc.
34
-i the versionof the sameletter,notice the
s$istic devicesthat areusedto make it more
joined by
:olite: complexsentences,
:onjunctions,rather than short sentences
e.g.... the balanceof [,t,t94,which hasbeen
cutstanding...ratherthan ...yourdebtof
tt,99q.Thisshouldhavebeencleared...);the
use of full ratherthan abbreviatedforms
,e g.I shall haveto consider.. . rather than
We'IIsue...);andthe useof passiveforms
and indirect language that avoids sounding
aggressive(e.g....for the accountto besettled. ..
ratherthan .. . if you do not clearyour debt...).
a.t
o
DearMr Rohn
I refer to our previous letter sent on 10 Octoberin which you
were askedto clearthe balanceof f 1,994on your account,which
has been outstanding sinceJuly.As there has been no reply,I
shall have to consider handing over the matter to our solicitors.
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However, I am reluctant to do this and am offering a further ten
days for the account to be settled.
Yourssincerelv
2
d i o n n sand c olloquia l l a n g u a g e
It is important to try to get the right 'tone'
in your letter.This meansthat, generally
speaking,you should aim for a neutral tone,
avoidingpompouslanguageon the one hand
and language which is too informal or
colloquial on the other.
Youmay setthe wrong tone byusing
the wrong vocabulary or idioms, or using
short forms inappropriately. Here are a few
examples,together with a preferred
alternative.
I NAPPR O P R I A T E
PREF ERRED
F O RM
AL T ERNAT IVE
you'veprobably
guessed
you areprobably
aware
you'll getyour
moneyback
the loanwillbe repaid
pricesareat rock
bottom
pricesareverylow
priceshavegone
throughthe roof
priceshaveincreased
rapldly
On the whole, it is better to avoid using
colloquial language or slang.Apart from the
danger of being misunderstoodif your
correspondent'sfirst languageis not Engiish,
he or she may think you are being too familiar.
35
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C L A R IT Y
Yourcorrespondentmust be ableto
understand what you have written. Confusion
in correspondence
often arisesthrough a lack
ofthought and care,andthere are a number of
ways in which this can happen.
Abhreviations
andinitials
2
Abbreviations can be useful becausethey are
quick to write and easyto read.But both
correspondentsneed to know what the
abbreviations stand for.
The abbreviationscrr and ros, for example,
are INcorERMs which mean,respectively,
Cost,Insurance,and Freightand FreeOn Board.
But canyou be surethat your correspondent
knows thatp&pmeans postageand packing?
Someinternational organizations,e.g.rvaro
(North Atlantic Treaty Organization),are
known in all countries by the same set of
initials, but many are not, e.g.ru (European
Union) and urv (United Nations).National
organizations,e.g.in the UK,c n r
(Confederationof British Industry) and luc
(TradesUnion Congress),
are unlikelyto be
familiar to correspondentsin other countries.
A range of abbreviations are used in email
correspondence>seepagezz,but many of
them are not widelyknown.If you are not
absolutely certain that an abbreviation or set
of initials will be easilyrecognized,it is best
not to use it.
hlumbers
We saw on page8 that the use of figures
insteadof words for datescan createproblems.
Numerical expressionscan alsocause
confusion.For example,the decimal point in
British and American usageis a full stop,but a
comma is usedin most continental European
countries,sothat a British or Americanperson
would write 4.255where a Frenchperson
wouid write 4,255(which to a British or
Americanpersonwould meanfour thousand
tw o hundredandfifty -five).
If there is the possibility of confusion,write
36
the expressionin both flguresand words,e.g.
fto, 575.9o (ten thousandfive hundred and
pounds,ninetypence).
seventy-five
Prepositions
Specialcareshouldbe taken when using
prepositions.Thereis a big differencebetween
Theprice hasbeenincreasedto t45o.oo,
Theprice hasbeenincreasedbyt45o.oo,and
Theprice hasbeenincreasedfromt45o.oo.
A C C UR A C Y
S p e llin g
Carelessmistakesin a letter can give readersa
bad impression.Spelling,punctuation,and
grammar should all be checkedcarefully.Many
peoplehavecometo rely on the spellcheckerin
their computersto ensurethat there areno
spellingmistakes.But a word speltincorrectly
mayform a completely different word, e.g.
Pleasegive it somethough (thewriter means
thought);I sawit their (the writer meansfhere).
A spellcheckerwouldmiss thesemistakes.
There is no substitute for carefully reading, or
proofreading a letter that you have written.
Ti tl er. nanref" ;l nd addresses
Usethe correcttitle in the addressand
salutation. Spellyour correspondent'sname
correctly(nothing createsa worseimpression
than a misspelledname),and write their
addressaccurately.
If you do not knowyour correspondent,do
not assumethat they are one sex or the other,
i.e.useDearSir/ Madam ratherthanDear Siror
DearMadam.If you know a correspondent's
name but not their sex,useMr / Ms,e.g.DearMr
/ Ms Barron.
References
When replying to a letter, fax, or email, quote
all referencesaccuratelysothat it is immediately
clearto your readerwhat you are writing
about.
Pointsto remember
measurements,
etc.
Prices,
Specialcareshouldbe taken when quoting
pricesor giving specificationssuchas
measurementsor weights.Quoting these
incorrectlycan causeserious
misunderstandings.
andattachments
Enclosures
Always checkthat you have actually enclosed
the documentsyou havementionedin your
Ietter,or attachedthem to your email
> seepage14.Check,too,that you have
enclosedor attachedthe right documents.If,
for example,the documentyou are enclosingis
invoicenll23r, make sureyou do not enclose
invoiceYr,/2r3.
When ordering,make sureyou quote the
ordernumber correctly,especiallyin
internationaltrade where mistakescanbe
very expensivein both time and money.
1 Includethe right amount of information.If
you are respondingto an enquiry make sure
you haveansweredall the writer's questions.
ai
2 Plan before you start writing. Make sure you
say everything you want to say,and in a
logicalsequence.
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3 Usea simplebut polite styleof ianguage.
4 Make surethat everything you write is clear
and easyto understand.Do not use
colloquiallanguageor abbreviationsthat
your readermay not understand.Write
numbersin words aswell asfigures.
2
5 Accuracyis important. Payspecialattention
to detailssuchastitles and names,and
referencesand prices,and rememberto
checkenclosuresor attachments.
6 Checkwhat you have written when you
have finished. Make sure everything is as it
shouldbe.
37
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M A K T N GE N O _ u r R r E S
39
39
39
40
40
40
41
41
42
42
42
43
44
45
46
Opening
pricelists,etc.
Askingfor catalogues,
Askingfordetails
patterns,
Askingfor samples,
anddemonstrations
Suggesting
terms,methodsof payment,
anddiscounts
Askingfor goodson approva
l,or on saleor return
Askingforan
estimate
ortender
Closing
':'
Pointsto remember
: r:';: '
EI
MA KIN G EN q U IR IES
,A sl l i i nrg
for catal ogucsi pri ce l dsts,etc .
A simple enquiry can be made by email,
fax, or cable.The contents of an enquiry will
dependon three things: howwellyou know
the suppiier,whetherthe suppiieris basedin
your country or abroad,and the type of goods
or servicesyou are enquiring about,Thereis
a differencebetween askinga computer
companyabout the costof installing a
complexcomputernetwork and askinga
publisherabout the price of a book.
It is not necessaryto give a lot of information
about yourselfwhen askingfor carArocux s,
pricelists,etc.This canbe doneby letter,fax,
or email,but rememberto giveyour postal
address.It is alsohelpful to point out briefly
any particular items you are interested in.
-Could you pleasesendyour currentcatalogue
andprice listJorexhibitionstands?Weare
particularly interestedin standssuitablefor
displayingfurniture.
-We haveheardaboutyour latestequipment
inlasersurgeryandwouldlikemoredetails.
Pleasesendus any informationyou can
supply,marking the letter'Forthe Attention of
ProfessorKazuhiro',TokyoGeneralHospital,
Kinuta- Setagayaku, Tokyo,I apan.
-I am planningto comeand studyin London
nextautumn andwouldbegratefulif you
couldsendme a prospectusand detailsof
yourfees.I am particularly interestedin
coursesin computing.
-Pleasewouldyou sendme an up-to-date
price listfor your building materials.
fi[' r Fill
l] j:
Teilyour supplierwhat sort of organization
you are.
-We area co-operativewholesalesocietybased
in Zurich.
-Our companyis a subsidiaryof Universal
Machinesand we specializein .. .
Business
-We areoneof the main producersof industrial
chemicalsin Germany,andwe are interested
\n ...
How did you hear about the company you are
contacting?it might be useful to point out that
you know their associates,
or that they were
recommendedto you by a consulateor trade
association.
-We weregivenyour name by the Hoteliers'
Associationin Paris.
-Youwere recommendedtous by Mr JohnKing,
of Lawsom& Davies,MerchantBankers.
-We wereadvisedby Spett.Marco Gennovisaof
Milan that you are interestedin supplying. . .
-The British Consulatein Madrid hastold us
that you are lookingfor an agent in Spainto
you.
represent
It is possibleto useother references.
-We wereimpressedby the selectionof
gardeningtoolsdisplayedon your standat
thisyear'sHamburg GardeningExhibition.
-Our associates
inthe packagingindustry
speakhighlyof your Zetapacking machines,
and we would liketo havemore information
aboutthem.Couldyou sendus . . .
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,Askfimg
fon cietafi[sr
When askingfor goodsor servlcesyou should
be specificand stateexactlywhat you want.
If replying to an advertisement,you should
mentionthe journal or newspaperandits date,
and quote any Box NUMBER or department
number given,eg.BoxNo.j4t;Dept 4/t28. And
if orderingfrom, or referring to, a catalogue,
B R ocH U R x,
or pR ospE crus,al w aysquotet he
reference,e g. Cat.no.at4g; Item no. 351t
Course
et 362.
-I am replyingto your advertisementinthe
Iune edition of 'Tailorand Cutter'.Iwould like
to know more about the steampresseswhich
you are offeringat costprice.
-I wiII beattendingthe auctionto be heldat
TurnerHouseon t6 February,and am
particularly interestedin thejob lot listedas
Item No.35t.
79
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-Could you pleasegive me more information
aboutcourseBt j6z,whichappearsinthe
IanguageJearningsectionof your summer
prospectus?
-I would appreciatemore detailsabout the
'UniversityCommunicationsSystem' which
you arecurrentlyadvertisingon y our website-
patterns,
Askingfor sampleso
anddemonstrations
3
You might want to seewhat a material or
item lookslike beforeplacing an order.Most
suppliersarewilling to providesamplesor
patternssothat you can make a selection.
However,fewwould senda complexpieceof
machineryfor you to look at.Instead,you
would probablybe invited to visit a showroom,
or the supplierwould offer to senda
representative.
In any case,if it is practical,ask
to seean example of the article you want to buy.
-IAlhen replying,couldyou pleaseenclosea
pattern card?
-We would alsoappreciateit if you couldsend
somesamplesof the materialso that we can
examinethe textureand quality.
-Before selling toys weprefer to test themfor
safety.Couldyou thereJoresendus at least
two examplesof the'Sprite'range?
-I would like to discussthe problemof
maintenancebeforedecidingwhich modelto
install in myfactory. ThereforeI would be
grateful ifyou couldarrangeforone ofyour
representativesto
call on me withinthe next
twoweeks
-Where canI seea demonstrationof this
system?
Su rg g e s ti n gte rm 5 , m e th o ds of
payment,anddiscounts
Companiessometimesstatepricesand
conditions in their advertisementsor literature
and may not like prospectivecustomers
making additional demands.However,even if
conditionsare quoted,you can mention that
you usually expectcertainconcessions
and
4o
politely suggestthat, if your terms were met,
you would be more likelyto placean order.
-We usuallydealon a jo% trade discount
basiswith an additionalquantitlt discount
for ordersover4ooo units.
-As a rule,our suppliersallow us to settle by
monthlystatementand wecanofferthe usual
referencesif necessary.
-We would also liketo point out that we
usuallysettleour accountson a o /e, basis
with payment by 3o-daybill of exchange.
-Couldyoulet usknow if you allow cash
discounts?
-As we intend to placea substantialorder,we
would liketo know what quantity discounts
youallow.
A ski ng for goods o{' !erpprued,l ,
(} r (,tr sal e or return
Sometimesretailersand wholesalerswant to
seehow a lIIrtr will sellbeforeplacing a flrm
order with a supplier.Two ways of doing this
areby getting goodson approvalor on a sALE
oR RETURN
basis.Ineithercasethe supplier
would have to know the customer well. or
would want TRADEREFERENcE
s.Thesupplier
would alsoplacea time limit on when the
goodsmust be returned or paid for.
-The leafletadvertisingyour latesthobby
magazinesinterestedus,and we would like to
stocka selectionof them.However,we would
only considerplacing an orderif it wason the
usualbasisof saleor return.Ifthis is
acceptable,we
will sendyouafirm order.
-In the cataloguewe receivedfrom you last
week,we sawthat you are introducinga new
Iine in syntheticfur s.lMile we app r ecIate th at
increasingpressurefr om wildlifepr otection
societiesis reducingthe demandfor realfurs,
we are not surehow our customerswould
reactto syntheticalternatives.However,we
would liketo try a selectionof designs.Would
it bepossibleforyou to supplyuswith a range
on an approvalbasisto seeiJwecanencourage
a demand?Threemonthswouldprobablybe
enoughto establisha market if thereis one.
Esrrmern s are quotationsto completea
job, e.g.putting a new roofon a factory or
lnstallingmachinery.TTwDERS
are similar
quotations,but in written form. They are often
usedwhen the job is a large one,e g. building a
completefactory.When the work is for a
government,or is a large undertaking,there
are often newspaperadvertisementsinviting
tenders.
_ A DVERT ISEM XNT :
Thelrish TouristOrganizationinvitestenders
from building contractorsto erectseatingfor
t o,o o o peoplefo r the Dublin Summer
shouldbeinby t Marchzo-,
FestivalTenders
on price and suitability of
and wiII be assessed
constructionplans.
-
A DVERT ISEM XNT :
TheZenaChemicalCompanyinvitestenders
from private contractorsforthe disposalof
chemicalwaste.Only thoselicensedto deal
with toxic substancesshouldapply.Further
detailsfrom . ..
A companymay write crRcurAR rnrtt n s to
severalsuppliers,inviting offersto completea
constructionjob, or to do repairsor decorating.
-We are a largechain of theatres,and would
be interestedin receivingestimatesfrom
upholsterersto re-coverthe seatsin our
two main theatresin Manchester.
-We are writing to a number of building
contractorsto invite estimatesforthe
conversionof NorthboroughAirfield into a
sportsand leisurecentre.Thework will include
erectingbuildingsand providingfacilities
suchas skislopesandparachutejumps.
Thedeadlinefor completionis the end of
Decemberzo-. If you canprovide a
competitiveestimatepleasecontactus at ...
-As you may be awarefrom recentpress
reports,wehavetaken overInternational
Motors plc and are inthe processof
automating their Hamburgfactory. Weare
writing to severalengineeringdesigners,
includingyourselves,whowe think may be
interestedin convertingtheplant to afully
you will
automatedproductionunit.Enclosed
Wewould welcome
find the specifi.cations.
inspectionof the site byyour surveyors,witha
view to supplyingan estimatefor the
reconstruction.
Usually a simple 'thank you' is sufficientto
ciosean enquiry.However,you could menti.on
that a prompt reply would be appreciated,or
that certain terms or guaranteeswould be
necessary
-We hopeto hearfromyou in the nearfuture.
-We would begrateJulfor an early reply.
-Finally, we would like to point out that
deliverybeforeChristmasis essential,and
hopethat you can offer us that guarantee.
-If you can agreeto the concessions
we have
will placea substantialorder.
askedJor,we
-Prompt deliverywould be necessary
as we
havea rapid turnover.Wewould therefore
needyour assurance
that you couldmeetall
deliverydates
rn
5
tt
E.
=.
o
3
Youcan also indicate further businessor other
lines you would be interestedin. If a supplier
thinks that you may becomea reguiar
customer,they will be more inclined to quote
competitiveterms and offer concessions.
-If the product is satisfactory,we will place
further orderswith you in thefuture.
-If the pricesquotedare competitiveand the
quality up to standard,wewill order on a
regularbasis
-P rovided y ou can offerfav ourablequotatio ns
and guaranteedeliverywithin four weeks
from receiptoJorder,wewiII place regular
orderswithyou.
4r
6
o
t
(t
E
ul
Rcqucrtfor e
crtelogucand
pdrc llrt
Dear Sir / Madam
Pleasewould you send me your Spring catalogueand price list, quoting CIF
prices,LeHavre?
Yours faithfully
F. Rnnl
F.Raval(M.)
Rcqurrtfore
prolpoctur
Dear Sir / Madam
UI
o
I would like some information about your coursesin English for Business
Executives,beginning in July.
-g
c
Pleasesend me a prospectus,details of your fees,and information about
accommodation in London for the period July to December.If possible,I
would like to stay with an English family.
E
o
x
EI
Yoursfaithfully
Y.Iwaru.ni
Ylwanami(Ms)
tcquort for
grncnl
lnformetlon
Dear Sir / Madam
Notethat the reference
to rnnoEpnr c r sint h i s
lettertellsthe
manufacturerthat
heis
d e a lingwitahRE T A T L ER
nota
or wholesaler,
privateindividual.
lf theseexamples
weresentasemail
messages,
it wouldbe
to remove
acceptable
the salutation
and
changethe
close
complimentary
f rom YoursJaithfu Ily to
the lessformalThanking
you in advance.
Ihqr€ lhret thott
enqurrret (o.rld lrc rr'nl
b y l? lttr . | .| r . o r e m .r ,l
42
Couldyou pleasesend me details of your tubelesstyres rivhichare being
advertisedin garagesaroundthe country?
I would appreciate a prompt reply quoting trade prices.
Yours faithtully
Erian Wyn'ut
BrianWvmer
Replytoan
advcrtisemcnt
251ruedesRaimonieres
F-86ooo PoitiersCedex
Tdlephone
: 9968ro3r
{+13,
(+11)2j41o2163
T6f6copie
(o f r
Emarl
ir ge..rrC@;:lrsc
ln thisletterthe
isreplying
to
customer
an advertisementfor
cosin a tradejournal.
gavelittle
Theadvertiser
information,
sothe
writerasksfor details.
tn
5
l|
E
o
h
Ref.PG/AI
12May2OThe SalesDepartment
R.G.ElectronicsAG
Havmart 601
D-50000Koln 1
3
tn
t,
x
3
E.
o
o
o
DearSir/Madam
We are a large music store in the centre of Poitiers and would like to know
more about the re-vwitable and recordableCDsyou advertisein this
month's edition of 'Lectron'.
Couldyou tell us if the CDsare leading brand names,or made by small
independent companies,and whether they would be suitable for domestic
recording?We would appreciateit if you could sendus some samples.If
they are of the standard we require,we will place a substartial order.We
would also like to know if you offer any trade discounts.
Yoursfaithtully
P. Qirad.
P.Gerard(M.)
Manager
WhydoesM.G6rard
sayWearea large
musicstore?
Howdidhehear
aboutthecos?
Whatrequirements
doeshesuggestmust
bemet beforehewill
placeanorder?
Whatconcession
doesheaskfor?
lf hehadbegunthe
letter DearMr-,
whatwouldthe
complimentary
close
be?
Whichwordsinthe
letterhavea similar
meaning
to the
following?
r mostimportant
b typeofproduct
< large
d reducedprice
tO
E
o
5
f.
o
5
s
4l
n
o
t
E
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|lI
Enquirryftom
a
buyhryagumt
Companies
often
haveagentsin other
who sellor
countries
buyproductsforthem
>seepagesr59+7o.In
thisemailthe agentls
actingon behalfofher
PRr Nc r P AinCana
rs
da.
JohnMerton
Ourref.180/MB
3
DearMr Merton
t!
E
o
g
B
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o
x
rll
Youwererecommended
to us byyourtradeassociation
and I amwritingon behalfof
England.
ourprincipals
in Canada,whoareinterested
in importing
chinawarefrom
Couldyousendus yourlatestcatalogueandpricelist,quotingyourmostcompetitive
prices?
Ourprincipalsarea largechainstorein NorthAmericaandwill probablyplacesubstantial
ordersif thequalig andpricesof yourproductsaresuitiable.
Manythanks.
LindaLowe
Director
Sanders& LoweLtd
PlanterHouse,PrincesStreet
LondonECI 7DQ
Tel.:+44(0)20787457
Fax:+44(0)207 87458
Email:Llowe@sanlo.co.uk
44
Enqulryftom
rntelhrto
rfionfn
rnrnufrctuu
DearSir/ Madam
Wearea chainof retailers
basedin Birmingham
andarelookingfora manufacturerwho
cansupplyus witha widerangeof sweatersfor the men'sleisurewear
market.Wewere
your
impressed
on
standat theHamburgMenswear
bythenewdesignsdisplayed
Exhibition
lastmonth.
As we usuallyplacelargeorders,wewouldexpecta quantitydiscountin addition
to a
prices.
payment
20o/olrade
discountoff netlist
Ourtermsof
arenormally30-daybillof
exchange,
D/$.
lf theseconditions
interestyou,andyoucanmeetordersof over500garments
at one
time,pleasesendusyourcurrentcatalogue
andpricelist.
Wehopeto hearfromyousoon.
PeterCrane
ChiefBuyer
E Lynch& Co.Ltd
NessonHouse,NewellStreet,
Birmingham
83 3EL
+44(0)212366571
Telephone:
Fax:+44(0)212368592
Email:pcrane@lynch.co.uk
I Whatexpression
doesPeterCraneuse
to indicatethat Lynch
& Co.isa large
company?
Whatmarket
areLynch& Co.
in?
interested
I Whatkindsof
discountarethey
askingfor?
Wheredid Lynch&
Co.getto knowabout
Satex?
I Howwouldpayment
bemade?
5 Howmanysweaters
aretheylikelyto
order?
I W hi chw ordsi nthe
letterhavea similar
meaning
to the
following?
r selection
b presented
c fixedprice
d itemof cloth'ing
ln
I
5
E
o
UT
Thisemailisfromthe
ChiefBuyerfor
a chain
of shopsin Birmingham
to an ltalianknitwear
Thebuyer
manufacturer.
explains
howhegot
to knowaboutthe
and
manufacturerl
that a quantity
suggests
discountandacceptance
of hismethodof
ln
x
paymentwould
!l
persuade
himto place
3
Eo
an order.Heisstating
o
histermsin hisenquiry
3
hefeelsthat
ll
because
asaB U LK euvrnhe
candemandcertain
conditions.
Butyou
will seefromthe reply
> page58that,although
the ltalianmanufacturer
wantsthe order,hedoes
not liketheterms,and
suggests
conditions
that
aremoresuitableto
hi m.
E
E
4J
Pointsto remember
6
o
I
q
E
EI
1 Givedetails of your own company aswell as
asking for information from your
prospectivesupplier.
2 Be specificand state exactlywhatyouwant.
If possible,quote box numbers, catalogue
references,etc.to help your supplier identify
the product/s.
3 Ask for a sample if you are uncertain about a
product.
3
4 Suggestterms and discounts,but be
preparedforthe supplierto make a counteroffer.
5 Closewith an expressionsuch asI look
forward to hearingfrom you and / or indicate
the possibility ofsubstantial ordersor
furtherbusiness.
+6
roc E N o_urR rE s
4 8 R E PL Y TN
48 Opening
4 8 C o n fi r mi ngthat you canhel p
4 8 ' Se l l i n g 'your product
al ternati ves
4 8 Su g g esti ng
R
e
fe
rri
ng
the customerto anotherpl ace
49
pri cel i sts,prospectuses,
4 9 Se n d i n gcatal ogues,
a n o s a m pl es
andvi si ts
4 9 A rra n g i ngdemonstrati ons
50 Closing
50
CtVtNC O_U OTA TtON S
50
51
51
51
53
53
53
54
54
54
55
56
57
58
59
6o
Prices
Transport
andinsurance
costs
Discounts
Methodsof payment
delivery
date
Quoting
termsandnegotiable
Fixed
terms
Civinganestimate
n
o
g
IO
o
rn
s,
o-o
c
=
o
r+
SJ
!f.
o
5
Pointsto remember
(n
tr
o
REPTYI NG TO ENO - UI R I E S
t!
o
Opening
s
In an email reply,the rr: abbreviation in
the subject line automatically shows that you
are replying to a message.Therefore it is not
usually necessarytouse a salutation.
>Seepageszo-z7formoreon email.
However,letters are different. Mention your
prospectivecustomer'sname, e.g.if the
customersignshis letterMr B.Green,begin
DearMr Green,xo'rDear Sir.
Thank the writer for his or her enquiry.
Mentionthe date of his orherletter and quote
any other references.
- Thankyou for your enquiryof 6 Junezoin whichyou askedabout ...
- Iwouldlike tothankyouforyour enquiryof
to May zo-, and am pleasedto tellyou that
we would be ableto supplyyou with the ...
- We werepleasedto learnfrom your letter of
to Decemberthat you are impressedwith our
selectionof . ..
- Thankyou for your letter,Nt t6gt, which we
receivedthismorning.
5
E
T'
t!
.g
Et.
o
c
4
that you canhelp
Confirming
Ietthe enquirerknownearthe start of your
reply ifyou have the product or can provide the
servicehe or she is asking about. It is irritating
to read a long letter only to find that the
supplier cannot help.
- Wehaveawide seledionoJsweatersthat wiII
appealto the market you specified.
- Ourfactory would haveno problem in
producingthe 6,ooo unitsyou askedforin
your enqutry.
- Wecan supplyftom stockand wiII have no
trouble inmeeting your deliverydate.
- I am pleasedto say that we wiII be able to
supply the transportfacilities you require.
- Wecan ofer door-to-door delivery services.
+8
product
'Selling'your
Encourageor persuadeyour prospective
customer to do businesswith you. A simple
answer that you have the goodsin stock is not
enough. Your customer might have made ten
other enquiries, so remember it is not only in
saleslettersthat you needto persuade.
Mention one or two selling points of your
product, including any guarantees,special
offers.and discounts.
- IAlhenyou have had the opportunity to see
the samplesforyourself,wefeel sureyouwill
agreethat they are oJthe highestqudlity;
and to seea wideselectiononline,go to
www.bettaware.co.uk.
- Onceyou haveseenthe Delta 8oo in
operationwe knowyouwill be impressedby
its trouble-freeperformance.
- Wecan assureyou that the Alpha 2ooo is one
of the most outstandingmachinesonthe
market,and our confidencein it is supported
by ourfiv e-year g uarantee.
g alternatives
5uggestin
Ifyou do not have what the enquirer has asked
for, but have an alternative, offer that. But do
not criticize the product he or she originally
askedfor.
- ... and while this enginehasaII the qualitiesoJ
the modelyou askedfor,the 'Powerdrive'has
the added advantageoffewer moving parts,
so reducingmaintenancecosts.Italsosaves
on oi l asi t ...
- Themodelhas now beenimproved.Itssteel
casinghasbeenreplacedby strongplastic,
whichmakesthemachinemuchlighterand
easiertohandle.
- Of course,Ieatheris an excellentupholstery
material,but escalatingcostshavepersuaded
many of our customerstolookforan
alternative whtch is more competitive in
price. TaretonPlasticshaveproduced a highwhich hasthe
quality substitute,'Letherine',
texture,strength,and appearanceofleather,
but at lessthan a quarterof the cost.Wefeel
d wiII
confidentthat the samplesenclose
you...
convtnce
Referring
the customerto
anotherplace
You may not be able to handle the order or
answerthe enquiry.If this is the case,tell the
enquirer and,if possible,referthem to another
company which can help them.
- I regretto saythat we no longerproducethe
type of stapleryou refer to as there is no
longersutficientdemandfor it.I am sorrywe
cannothelpyou.
- Thebookyou mention is not publishedby
us,but by Greenhill Education Ltd.Their
address
is...
- Weno longer manufacture pure cotton shirts
astheir retailpricestend only to attract the
upperend of the market.AIIour garmentsare
nowpolycotton, which is stronger,needslittle
ironing,and allowsvariationsin pattern,
whichyou can seeon our websiteat
www.elegance.co.uk.
However,if you are only
interestedin pure cottongarments,weadvise
you to contactLouisFashionsLtd at . ..
Evenif you can handle the enquiryyou may
still have to refer the enquirer elsewhere.
- WemanuJacturetheprodud you require,but
we only deaI with wholesalers,not retailers.
Therefore,Isuggestyoucontactour agent,R.
L.Deprd SA,rueMontpellier 28,Paris,. ..
- Our agentsinltaly areIntalS.p.A,ViaAlberto
Poerio 79,Rome,Email: <sales@intal.co.it>.
Theycarrythefull rangeof our products.
pricelists,
Sendingcatalogues.
prosPectuses,
andsamples
Remembertoenclosecurrent cataloguesand
price lists withyour reply. If you are attaching
catalogues,pricelists,etc.to an email message,
make sure you compressthem to saveyour
recipient's time when they download the
material.If pricesare subjectto change,let
your customerknow.It is bad policy suddenly
to senda letter telling a customerthat prices
havebeenincreasedby ten per cent after you
have quoted a firm price.And ifyou are
sendingsamplesuworn sEeARATE
covEn,let
your customer know when they are likely
to arrive.
- Pleasefi.nd
enclosedour currentcatalogue
andprice list quoting c r r pricesKobe.The
unitsyou referredtoin your letterare
Jeaturedon pp.3t-34 undercatalogue
numbersy32-y37.Whenorderingcouldyou
pleasequotethesenumbers?Thesamplesyou
askedforwillfollow underseparatecover.
- Weencloseour bookleton the Omegazooo
and aresureyou wiII agreethat it is one of the
finest machinesof its kind.It can be adapted
(seethe section
to your specifications
'Structuralchanges'onpage tz).
- Weencloseour summercatalogue,which
unfortunatelyis only publishedin English.
However,wehaveincludeda German
translationfor the relevantpages(4t-4j and
hope this will prove helpful.
- . .. and we haveenclosedour price list,but
shouldpoint out that pricesaresubjectto
changeas the marketfor raw materialsis
very unstableat present.
o
t-
.D
t
5
c
c
o
c,
o
4
5
4
A rran gi ng demonstrati ons anelvi si ts
Certainproducts,e.g.heavy equipment,
machinery and computer installations, may
needdemonstrating.In thesecasesthe
supplierwill either senda representativeor
adviser,or suggestthat the customervisits
their showroom.
- Wehaveenclosedfulldetailsof the Laren
welder,but a demonstrationwould be
necessary
to showyou itsfuII capabilities.We
thereforesuggestthatyouvisit our centrein
Birmingham,wherethe equipmentis setup,
sothat you canseethe machinein action- As the enclosedbookletcannotreallyshow
the eficienry oJthis system,wewould be
happy to arrangefor our representativeto
visityou and give a demonstration.Ifyou are
interestedin a visit,pleasefiII in the enclosed
pre-paidcardand return it to us.
- TheenclosedcataloguewiII giveyou an idea
of the type of soundequipmentweproduce,
but may we suggestthat you alsovisit our
49
tr
o
G
E
3
E
It
tr
o
.g
a
o
e
agent'sshowroomsin Rotterdamwhereyou
can seea wide rangeof units?Theaddressis .. .
- Beforeinstallingthe equipment,wewould
Iiketo sendMrTony Grifith,our Chief
Engineer,to look overyour plant andprepare
a reporton the installation,takingyour
particular requirementsinto account.We
suggestyou contact us to arrange a
convenientdate.
Closing
4
Always thank the customer for contacting you.
Ifyou havenot done so at the beginning ofthe
letter or email,you can do so at the end.You
shouldalsoencouragefurther enquiries.
- Onceagain we would liketo thank youfor
writing. Wewould welcomeanyfurther
questionsyou might have.
- Pleasecontact us again ifyou haveany
questions,using
the abovetelephonenumber
or email address.
- I am sorrywedo not havethe modelyou
askedfor,but can assureyou that the
alternativeI havesuggestedwiII meetyour
requirements.PIeaseremember that we ofrer
afuII thr ee-year g uarantee.
- Wehopeto hearfromyou again soon,and
co.nassureyou that your orderwiII bedealt
withpromptly.
G IV IN G O -U O T A T IO N S
In your reply to an enquiry you may want to
giveyour prospectivecustomera o_uorATroN.
Belowis a guide to the subjectsyou should
cover.
Prices
\Mhen a manufacturer, wholesaler,or retailer
quotes a price,they may or may not include
other costssuchastransport,insurance,and
pURcHASE
rax (e.g.var(Varur Aooro Tax)
in the UK).Priceswhich includetheseextra
costsareknown ascRoss pRIcEs ; thosewhich
excludethem areknoum as N ETpRIcEs.
5o
- Thenetprice of this articleisf,too.oo,to
which vtr must beaddedat t7.5%,making a
grossprice of tn7.5o.
- Wecanquoteyou a grossprice,inclusiveof
of fi47.5oper rco items.
deliverycharges,
goods
These
are exemptfromvAr.
A quotation is not necessarilylegally binding,
i.e.the companydoesnot haveto sellyou the
goodsat the price quotedin the reply to an
enquiry. However,when prices are unstable,
the supplier will say in their quotation that
their pricesaresubjed to change.If the
companymakesafirm ofrer,ilmeansthey will
hold the goodsfor a certaintime until you
or der,e.g.fi r m 4 days. Again,this is not Iegally
binding,but suppliersgenerallykeepto firm
offers to protect their reputation.
- Thepricesquotedaboveareprovisional,since
we may be compelledby the increasingcostof
raw materialsto raisethem.I wiII informyou
immediately if this happens.
- Wecan offeryou a price of t 5,zoo.ooper
engine,firm zt days,after which the price wiII
besubjectto an increaseof 5%.
Wheneverpossibleyou should quote pricesin
your customer'scurrency,allowing for
exchangefluctuations.
- Theprice oJthis modelis Yz,8oo,oooat
today's rate of exchange.
- Wecan quoteyou a price of €3oo per rco
units,though I regretthat, becauseof
Jluctuatingexchangerates,wecan only hold
thispricefor four weeksfrom today'sdate.
- Thenetpriceof $5jo.ooper unit is extremely
competitive.
Tnansport
andinsuranee
eosts
Diseounts
There are a number of abbreviations that
indicatewhich price is being quotedto the
customer.Theseare establishedby the
Is rr n rv a rro rrra C
r H n Ms rn o r C omann
ncn
(ICC)and arecalledIr.lcornnus. Theyare
revisedregularly,and additionalterms may
be added,e.g.the phrasecrr NaplesIncoterms
zooo landedmeansthat a consignmentis
coveredunder an Incoterm c r r (cost,
insurance,and freight) setin the year 2ooo,
up to the time it is landed in Naples.
The main Incotermsare in four groups,
which are named after the flrst letter in the
term.
Manufacturersand wholesalerssometimes
allow a discount (i.e.a deduction)on the net
or grossprice.Theseare ofdifferent kinds,e.g.
a trade discountto sellersin similar trades;a
quantity discount for orders over a certain
amount; a cashdiscountif payment is made
within a certaintime;a LoyArry DrscouNr
when companieshave a long association.
- Weallow a j% cashdiscountforpayment
within onemonth.
- Thenetprice of this modelisftTo.oo,Iessrc%
discountforquantitiesup to rco and ry%
discountforquantiti.esover1oo.
- Wedo not normally give discountsto private
customers,but becauseof your long
associationwithour companywecan ofrer
you tz% offthe retailprice.
- Thepricesquotedare crn Yokohama,but
are
subjectto a zo%trade discountofr netprice.
Wecan offerafurther to% discountoff net
pricesforordersof more than z,ooo units.
GroupC
The sellercoversonly the costslisted to get the
goodsto a named destination,e.g.freight and
import duties,but not insurance.
GroupD
The sellercarriesall the costsand risksto get
the goodsto a named destination.
GroupE
The buyer paysall costsoncethe goodshave
left the seller'spremises.
GroupF
The sellerdeliversthe goodsto a carrierwho is
appointedbythe buyer.
Incotermsare quoted in correspondence
in
the following way: t3o,ooo crn Hong Kong (i.e.
the price includesall deliverycoststo Hong
Kong,exceptfor insurance);$35,oooroa
Rotterdam(i.e.the price includesdeliverycosts
to when the goodsare on boardship at
Rotterdam).Abbreviationsfor Incotermsmay
alsobe written inlower case,e.g.cfr
orfob.
Two otherterms which shouldbe noted,but
which areusedmainly in the UK,are:
- Cannracr yuo (c/ e),i.e.chargeswill be
paid by the sender,e.g.WewiII send
replacementsforthe damagedgoodsc/e.
- Cannracr FoRWARD(c/r),i.e.charges
will
be paid by the receiver,e.g.Asyou are
responsible
for the damage,we wiII send
replacements
c/r.
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Mef hods of p.rvrnent
When quoting terms,you may require,or
suggest,any of severalmethodsof payment,
e.g,Ietter of credit or bill of exchange.
> Formoreon this subject,seepages78-79,
and47-157.
- On receiptof a chequefor the amount quoted,
we will sendthe articleby registeredmail.
- Paymentfor initial ordersshouldbe made by
sight draJt,payableat Den Norske
Creditbank,Kirkegatenn, OsIot, cashagainst
documents.
- Weare willing to consideropenaccount
facilities ifyou canprovidethe necessary
bank reference.
51
5
tr
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INCOT ERM
AB B R E V IA TION
E X P LA N A TION
Gro u pC
Costand FReight
C FR
The selier pays all delivery coststo a named
destination,exceptfor insurance.
Cost,Insurance,
and Freight
C IF
The sameas crn, exceptthe selleralsopays
the costof insurance.
CarriagePaidTo
CPT
The seller pays all delivery coststo a named
destination.The buyer pays any additional
costsafterthe goodshavebeendeliveredtoa
nominated carrier.
Carriageand
InsurancePaid
C IP
The sellerpaystransport and insurancecosts
to a named destination, but not import duty.
tr
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4
4
Gro u pD
Delivered at Frontier
uAr
DeliveredEx-Ship
DES
The seller pays all delivery costson board ship,
but doesnot clearthe goodsfor import at the
named port of destination.
DeliveredEx-O_uay
DEO
The seller pays all delivery coststo a port
named by the buyer,but doesnot clearthe
goodsfor import at the named port.
Delivered Duty Paid
DDP
The seller pays all delivery costs,including
import duty, to a named destination in the
importing country.
Delivered Duty Unpaid
DDU
The sameasDDp,exceptthat the sellerdoesnot
pay import duty.
Gro u pE
EX-Works
EXW
The buyer pays all delivery costsoncethe goods
have left the seller'sfactory or warehouse.
Gro u pF
FreeCArrier
FCA
The seller pays all delivery coststo the buyer's
carrier, and clearsthe goodsfor export.
FreeAlongsideShip
FAS
The seller pays all delivery coststo the port. The
buyer paysfor loadingthe goodson to the ship
and all other costs.
FreeOn Board
t2
The seller pays all delivery coststo the buyer's
frontier,but not import duty.
The seller pays all delivery coststo when the
goodsare onboard ship at a namedport.The
buyer pays all other costs.
Quotingdeliverydate
If the enquiry speciflesa deliverydate,
confirm that it canbe met, or if not, suggestan
alternative date.Do not make a promise that
you cannot keep as it will give you a bad
reputation.If a deliverytime is a condition of
ordering,the customercouldrejectthe goods
or sueyou ifyou breakthe contract.
- . .. and we arepleasedto saythat we can
deliverby NovemberL soyou will havestock
for the Christmassalesperiod.
- As thereare regularsailingsfrom Liverpoolto
NewYork,we aresurethat the consignment
will reachyou weIIwithin the time you
specified.
- Wehavethe materialsin stockand wiII ship
your order.
them immediatelywe receive
- As thereis a heavydemandforfansat this
allowatleastsixweeksfor
time of year,please
delivery.
- Wewould not beableto deliverwithin two
weeksof receiptof order,aswe would need
time to preparethe materials.However,we
couldguaranteedeliverywithinfour weeks.
Fixedtermsand negotiableterms
be discussed.
In the f,nal examplethe supplier
softensthe tone further by askingthe
customerto conflrm whether or not the
arrangementis satisfactory.
- Weusuallyofferan B% tradediscounton
r o s prices,and wouldpreferpayment by
irrevocableletterof credit.
- Normally we allow a 4% trade discount
offnet priceswith payment on a documents
againstpayment basis.Pleaselet us know if
thisarrangementis satisfactory.
Givingan estimate
F
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4
Companieswhich are askedto give an
estimatefor a particularjob may include
the estimatein tabulatedform in a letter
> seepage59.More often,however,they will
sendtheir offcial estimateform with a
nnrrarin
n la++av
- Asyou know,our representative
hasvisited
yourfactory to discuss
your proposed
extension,
andI nowhavepleasurein
enclosingour oficial estimate.
- Theenclosedestimatecoverslabourand
partsand carriesa six-monthguaranteeon
allwork comaleted.
Youcan quoteterms in two ways:state
your price and discountswith no room for
negotiation,or suggestthe customercould
discussthem. In the two examplesbelow,the
writers makefirm quotes,indicating that
methodsof payment and discountsarefixed.
- Alllist pricesarequotedrot Southampton
and aresubjectto a z5%tradediscountwith
payment by letterof credit.
- Thepricesquotedarenxw,butwe can
arrangefreightand insurance(crc Hong
Kong) if required.However,unlessotherwise
stated,payment shouldbe madeby jo-day
biII of exchange,documentsagainst
acceptance.
In the next two examples,the useof the
adverbsnormally andusually softenthetone
of the statementsto indicatethat, although
the companypreferscertainterms,thesecan
53
o
R eply t o a r eque rt
f o r a c at alogue
a n d pr ic e lis t
I
' Seepage4z for
the request.
I
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DearMrRaval
Thank you for your enquiry of 31January.We encloseour Spring Catalogue
and current price list quoting CIFprices LeHavre.
We would like to draw your attention to the trade and quantity discounts
we are offering in our SpecialPurchasessection on pp. 19-26,which may be
ofparticular interest to you.
Pleasecontactus if we canbe of anyfurtherhelp.
Yourssincerely
':
4
5
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TimHoad
Replyto a request
for a prorpectur
. Seepage 4z for
the request.
|ll
DearMs Iwanami
Pleasefind enclosedour prospectuscoveringcoursesfrom Julyto
December.Details of feesand accommodation in London for that period are
coveredin the booklet 'Living in London'which accompaniesthe
prospectus.
At present we still have placesavailablefor students taking the English for
BusinessExecutivescoursebeginning in July,but would ask you to book as
soon as possible sothat we can reseryea place for you and arrange
accommodation with an English family.
We are sureyou will enjoy your stay here and look forward to seeingyou.
Yourssincerely
I,
M.Preston(Ms)
Reply t o. r r eque rt
fo r gener al
i n f or nr at ion
page4z for
' See
the request.
DearMrWymer
Thank you very much for your enquiry. I enclosea cataloguegiving detailed
information about our heavy goodsvehicle tyres, including the impressive
results we have achievedin rigorous factory and track tests.Pleasenote
especiallythe items on safety and fuel economy-the main selling points of
this product.
With regard to trade discounts,we can offer 25%off listprices to bona flde
retailers and wholesalers,with quantity discountsfor ordersover f,20,000.00.
We would be pleasedto supply any further information you require.
Yourssincerely
.
DarrenTreadwell
54
.,r1
Catalogues
and
samPles
Electronics
AG flHl?,1",
m.ffi.
(+49)zzt3z 4z 98
Telefon
Telefax(+49)zzt 83 6t z5
de
ilil:,?::f:"'rge'co
YourRef:PG/AL
14Mav20-
M.Gdrardwroteto R.G.
Electronics
to enquire
aboutc os >seepage43.
Heimpliedthat hisstore
wasa largeone,thathe
in
wasonlyinterested
high-qualityproducts,
andthat hemightplace
ntiaI order.This
a substa
isthe reply.
l1.Geraro
Manager
DiscS.A.
251rue desRaimonidres
F-86000PoitiersC6dex
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uear ]vI.ueraro
o
Thank you for your enquiry of 12May in which you askedabout the CDs
we advertisedinthis month's edition of 'Lectron'.
I can confirm that they are of high quality, and suitable for domestic
recording.They are'Kolby'products,a brand name you will certainly
recognize,and the reasontheir prices are so competitive is that they are
part of a consignmentof bankrupt stockthatwas offeredto us.
Becauseof theirlowprice, andthe small profit margin,we will not be
offering any trade discounts on this consignment. But we sell a wide range
of electronic and computer products and have encloseda price list giving
you details oftrade, quantity, and cashdiscounts.
We have sent,by separatepost, samplesof the advertisedCDsand other
brandswe stock,and would urge you to placean order as soonaspossibleas
there has been a huge responseto our advertisement.Thank you for your
interest.
Yourssincerely
R. Qer|ar-h,
(Herr)R.Gerlach
SalesDirector
Enc.price-list
What referencesdoes
HerrGerlachquote?
Why arethe cos
being sold cheaply?
Doesheofferany
discounts
on the
goods?
advertised
What other material
hashe sentto Disc
5.A.?
CanDiscS.A.order
wheneverthey want
to?
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55
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'Selling'the
product
Thisisa replyto the
buyingagentwho
emailedGlaston
Potteries>seepage44
on behalfofher
principals
in Canada.
Asthe agentmade
no reference
to any
particular
lineof
chinaware
shewas
interested
in,anddid
not mentionterms,
thisreplytakesthe
formof a salesletter.
!c
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r .u,r
r r *o' ol.e V
GLASTON
POTTE
RlEi
rrp
Tel ephone+44 (o)r282.i .5rl l
Facsi mi l e+44 i o j tz8,-63rE ;
E mai lI mettor@g'astc:.co rr<
wWVv Hla5iCn
CC'-'-
10June 20MsL.Lowe
Sanders& Lowe Ltd
Planter House
PrincesStreet
LondonECl7DO_
DearMs Lowe
x
tll
We were pleasedto receiveyour enquiry today,and are enclosingthe
catalogueand price list you askedfor.
Youwill seethat we can offer a wide selectionof dinner and tea services
ranging from the rugged'Greystone'earthenware breakfast setsto the
delicate'Ming'bone china dinner service.You can choosefrom more than
fifty designs,which include the eleganceof 'Wedgwood',the delicate
pattem of 'Willow', and the richness of 'Brownstone'glaze.
We would very much like to add your clients to our worldwide list of
customers,and could promise them an excellent product with a fust-class
service.We would be glad to acceptordersfor any number of pieces,and can
mix setsif required.
Youwill seethat ow prices are quoted CIFto EasternCanadian seaboard
ports and we are offering a special10%discount off all net prices,with
delivery within three weeksfrom receipt of order.
If there is any further information you need,pleasecontact us,or go to our
website at the addressabove.Onceagain thank you for your enquiry.
Yourssincerely
J. Muton
J.Merton(Mr)
SalesManager
Enc.
R egr s ter edN o 716481
v Ar R eBr s ter edN o r 33 53.i 3rc B
Er
3
3
=
c)|
56
HowdoesMr Merton
drawattentionto his
company's
many
products?
How does he imply
that his companyhas
an international
reputation?
3 Whattermsfor
deliverydoGlaston
Potteriesquote?
4 Howdoeshe
encourage
further
enquiries?
Whichwordsin the
letterhavea similar
meaning
to the
following?
r range
b select
c timewhenorder
received
Offeringan
alternative
PedroMonteiro
A w h o l e s a l e ri s o u t o f
stockofthe adapters
that hercustomerhas
askedfor,so she offers a
substitute.However,the
new producthasnotyet
beentestedand she
knowsnothingabout its
performanceor safety.
F
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(K153,
Enquiry
K157units)
4
DearSr Monteiro
tn
Thankyoufor youremail.I regretto saythatwe are out of stockof K153and K'l57 units,and
co notexpectanotherdeliveryuntillaterthis month.
fromTaiwan,butthesedo not havea Belgian
'lVeare currentlytestinga consignment
StandardsInstitutestampof approvaland we wouldliketo completeour testsbeforeputting
:hemon the market.We willcontactyou againas soonas our testingis completed,or when
:he unitsyou requestedare available,
whicheverdateis the earlier.
x
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Di a n eChar c ot( M m e)
r,t3 l a ger
I i SC har c ot S . A . R. L.
: =:e du 20 ao0t79, 8-4000, Lidge
: : i+32)49-240886
-: ecopie:(+32) 49-16592
=-all: d.charcot@dscharcot.co.be
i W hat is Mme
Charcot'sproblem?
2 How doessheshow
3 ls Mme Charcot
her c us t om er t hat s he
r el y i n g o n h e r
is concernedabout
customertocontact
safety?
heragain?
rO
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9.
a
57
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Quotationof
tcrmr
S a te x
This is a replyto the
genera en
l qu iryin whic h
Mr Crane,ChiefBuyerat
F.Lynch& Co,askedfor
certainconcessions
> seePate 45. Notice
how Sig.Causioof Satex
doesnot turn down his
requestsbut makesa
counter-offer.
S.p .A-
Vr .1( i i []i eI.r t F aEa o" r t,tr t. r ,.'l r i I
l ercto,.ri c,r
+39 1o)67699ro
trel ':t.r.r,:-i
39 (o,)66i 3i 5,;7;
E m,rr!;rausrod@satex(o.rI
v.,.rrr Vs.rif.: 6 Feb.20'rs nf D/1439
21February20Mr PeterCrane
ChiefBuyer
F.Iynch & Co.Ltd
NessonHouse
Newell Street
Birmingham833EL
UK
4
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DearMr Crane
We were pleasedto receiveyour enquiry and to hearthat you liked our
rangeof sweaters.We can conflrm that there would certainlybe no trouble
in supplyingyou from our wide selectionof garments.
We can offer you a quantity discount,which would be 5%off net pricesfor
ordersoverf 2,000,but the usual allowancefor a trade discountin Italy is
159/o,andwe
always deal on payment by sight draft, cashagainst
documents.However,we would be preparedto review this oncewe have
establisheda flrm trading associationwith you.
Enclosedyou will find our summer catalogueand pricelist quoting prices
crr London.We are sureyouwill find a ready salefor our productsin
England,ashaveother retailersthroughout Europeand America,and we
hopevery much that we can reachagreementon the terms quoted.
Thank you for your interest. We look forward to hearing from you soon.
Yourssincerely
E. C;::ut...'t)
D.Causio(Sig.)
SalesDirector
Encs.
DoesSig.Causio
agre eto a ll Mr
Crane'srequests
concernrnS
discounts?
58
What sort of payment
doeshe askfor?
What is enclosed
with the letter?
What doeshe
suggestabout the
method of payment
in the future?
How does5ig.Causio
indicatethat his
companydeals
internationally?
Whichwordsin the
letterhavea similar
meani ng
to the
following?
, bi l lpai don
presentation
r reconsider
, linkor connection
An estimate
e€
We."nbicyShopfitters Ltd.
Ie erhone +di ,cl -.c E 9o3 z3z;
;a,i +4t (o)zo 89o3:323
!ma,r: p,ane@tvei rsncpcom
\ l i ( c n r D e Ro a d
\!ernL! ey
M i d d : e s ex
rn9 6oe
22}une20-
Mr K. Bellon
SuperbuysLtd
SuperbuyHouse
WolvertonRoad
LondonSW167DN
illustrates
Thisexample
sentin
anestimate
formin the
tabulated
bodyof a letter.lt refers
of
backto theexchange
emailmessages
) seePages23-24,when
WembleyShopfitters
saidtheywouldsend
theirsurveyortoprovide
anestimate
forthisjob.
7'
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DearMrBellon
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Estimate for refitting Superbuys'Halton RoadBranch
Our Surveyor,lohn Pelham,visited the abovepremiseson Wednesday
16lune, and our costing department have nowworked outthe following
estimate for fixtures and fittings. This includes materials and labour.
Fitting 200m of 'Contact'shelving in main shop
and storeroom @f 35.00per metre
t2000.00
Erecting r5 steel stands plus shelves23m x 6m
each
@f,110.00
t1,550.00
laying 3,320 sq.m.'Durafloor' flooring @f,i8.00
persq.m.
f59,760.00
Rewiring; fixing power points, boxes,etc.36'Everglow'
lightfittings @f,28.00each.
3
Eo
.D
o
t1,008.00
Subtotal f 69,418.00
plus VAT@17.5% tr2,748-7s
TOTAT f 81.566.15
We feel sure you will agreethat this is a very competitive estimate,bearing
in mind that we use top-quality materials backedby a one-yearguarantee.
We can also conflrm that the job will be completed before the end of
February provided that no unforeseen circumstancesarise.
If you have any further questions,pleasecontact our SeniorSupenrisor,
Mr Terry Mills, on the abovenumber, ext. zr.
We look forwardto hearing fromyou soon.
Yourssincerely
?. Lan"e.
P.Lane(Mr)
Director
?eg .c 'r .tor t 45'f:t
"
Whatisthe subjectof
this letter?
lsthefiguref 69,4t8a
netor a grosstotal?
WhydoesMr Lane
consider
thisa
comoetitive
offer?
4 Whatmightprevent
thejobfrombeing
completed
in
February?
5 W h a ti s MrMi l l s ' s j o b
title?
t ;" t92E
Whichwords in the
letter havea similar
meaningto the
following?
r buildings
b calculated
c supported
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59
Pointsto remember
5
E
.9
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E
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G
Ut
o
e
o
4
1 In salutations,use the customer'sname
ratherthanDear Sir/ Madam.
2 Letthe customer know early in the letter
whether or not you can help them.
3 Male surethat you have supplied all the
information you think will help your
customer including, if relevant, catalogues
and price lists.
4 Than-kthecustomerfor contacting you, and
encouragefu rther enquiries.
4
5 When giving a customer a quotation, in
addition to the price quote transport and
insurance costs,any discounts,method of
payment, and delivery date.
6 Do not promise a delivery datethat you
cannotkeep.
6o
6z
pLAc t NG A N o R D E R
6z
6z
6z
6z
6z
63
63
Opening
Payment
Discou
nts
Delivery
Methodsof delivery
Packing
Closing
fi
63
Ac KNowlE D G T N c A N o R D E R
ADVTc EoF D E s P A T c H
64
65
66
67
68
69
7o
71
DEL AYS tN D E LTV E R Y
71
REF UST NC A N OR D E R
71 Out of stock
j 2 B a dre p u tati on
e
7 2 U n fa v o u rablterms
7 2 S i z eo f o rder
73
14
75
Pointsto remember
o
r.t
oo
tn
-
o
T'
o
P L AC IN GAN OR D E R
D i scorrrrts
Ordersareusually written on a company's
official order form >seepage65 for an example
which has a date and a referencenumber that
shouldbe quotedin any correspondence
referringto the order.If the orderis
telephoned,it should be confirmed in writing,
and an order form should always be
accompaniedbyeitheracoMpLlMENrs
sLrp
oracovxRlNcLErrER.Acoveringletteris
preferable as it allows you the opportunity to
make any necessarypoints and confirm the
termsthat havebeenagreed.
The guide below is for an outline of a
covering letter. You may not want to make all
the points listed,but look throughthe guideto
seewhat couldbe mentioned.
Confirmthe agreeddiscounts.
- Wewould like to thank youfor the 3o%
tradediscountand to% quantity discount
you allowedus.
- Finally,wewould liketo confi.rmthat the
z5%trade discount is quite satisfactory.
- .. . and we wiII certainly take advantageof
thecashdiscountsyouofreredforprompt
settlement.
- Although we anticipated a higher trade
discountthan ry%,we wiIIplacean initial
orderandhopethatthediscountcanbe
reviewedin the nearfuture.
Operr i ng
Make it clearthat there is an order
accompanying the letter.
- Pleasefindenclosedour OrderNo.a45ztfor z5
'Clearsound'transistor
receivers.
- Theenclosedorder (No.nt54) isJor 5o packets
of e4 copierpaper.
- Thankyouforyour reply of 4 May regarding
our email about the mobilephones.Enclosed
you willfind our oficial order(No.a 56t)for ...
- I would like to place a trial orderfor the
'Letherine'materialwedtscussed
at the trade
showlastmonth.Please
find enclosed.. .
p.ry rrrr.. t
ConfirmtherxRMSoF pAyMENr.
- As agreedyouwill draw on us at 3o days,D/A,
with the documentsbeingsentto our bank,
TheNational MercantileBank ...
- Wewould liketo confirm that payment is to
be made by irrevocableletteroJcredit,which
wehavealreadyappliedtothe bankfor.
- Oncewe have receivedyour advice,we wiII
senda bank draft to . . .
- ... and we agreedthatpaymentswould be
madeagainstquarterlystatements...
6z
Deliver v
Confirm the delivery dates.
- Itis essentialthatthe
goodsaredelivered
beforethe beginningof November,in timefor
the Christmassalesperiod.
- Delivery beforez8 Februaryis afirm
conditionof thisorder,and we reservethe
right to refusegoodsdeliveredafter that time.
- Pleaseconf.rm that you can completethe
work beforethe end of March, as the opentng
of the store isplannedfor earlyApril.
Mpthorlr of d e I ivt,r v
Many companiesuseronwARDrNG AcENTS
Dseepager99who are specialistsin packing
and handling the documentation to sn r p
goods.Nevertheless,
to ensureprompt and safe
delivery it is a goodideato advisethe company
onhowyouwantthegoodspackedandsent.
This meansthat if the consignmentarrives
Iate,or in a damagedstate,your letter is
evidenceof the instructionsyou gave.
- ... and pleaserememberthat only airfreight
wiII ensureprompt delivery.
- PleasesendthegoodsbyexpressJreightaswe
needthem urgently.
- Weadvisedelivery by road to avoid constant
handling of thisfragile consignment.
- Couldyou pleaseship by scheduledfreighter
to avoid any unnecessarydelays?
P acking
A Dv rc Eo F DE s P A T c H
Advise your supplier how you want the goods
packed.Note,in the first example,that crates
are often marked with a sign - a diamond, a
target,asquare,alion, etc.-that canbe
recognizedbythesupplierand customer.
- Eachpieceof crockeryis to be individually
wrapped in thickpaper,packedin straw,and
shippedinwoodencratesmarkedOand
numberedt to 6.
- Thecarpetsshould be wrapped,and the
packagingreinforced
atbothendstoavoid
wear.
- Themachinesmust be weIIgreasedwithall
movableparts securedbeforebeingloaded
into crates,whichshouldbeclearlymarked
with your castlelogofor easyidentification.
When the supplier has made up the order and
arrangedshipment,the customeris informed
by means of an advicenote. This may be a form
pageTo,letter,fax,oremail.
'see
Although an advicenote canbe sentbyfax
or email, the customer may need to present
original documents (e.g.rwvorc n, bill of
lading,rmsunANcEcERrrFrcarr)tocollect
the consignment.Of coursethesecannot be
faxed or sent by email.
- Yourorder,No.o/t54/r,is
alreadyonboard
the SSMitsu Maru, sailingfrom Kobeon t6
May and arriving Tilbury,London,
on n June.
Theshippingdocumentshavebeen
forwarded to your bank in Londonfor
colledion.
- Wearepleasedto adviseyou that the watches
youordered-No.88t5t/24-willbeonflight
s,a,t65leavingZurichat n.oo,9 August,
arrivingManchesterry.oo.Please
find
enclosedair waybill oc t5t6t/j and copiesof
invoice,an3fi,whichyouwillneedfor
collection.
- Yourorder,No.vt /t5t/c, is beingsentexpress
rail-freightand can be collectedafter o9.oo
tomorrow.Enclosedis consignmentnote No.
n6V5j,which shouldbepresentedon
collection.Youshouldcontactus immediatelv
i fanyprobl emsari se' Thankyouforyou r
order,and we hopewe can be offurther
serviceinthefuture.
Cfosing
- Wehopethat this wiII be thefirst of many
ordersweplacewithyou.
- WewiIIplacefurtherordersif this one is
completedtoour satisfadion.
- If our salestargetsare met,we shall be
placingfurther ordersin the nearfuture.
- I lookJorwardtoreceivingyour advice/
/ confirmation.
shipment/ acknowledgement
A c K N o w L ED G IN G A N o R DE R
As soonas a supplierreceivesan order,it
shouldbe acknowledged.This canbe doneby
Ietter,or by email for speed' seepage66.The
following examplescan be usedin both emails
and letters.
- Thankyouforyour order No.g8e whichwe
receivedtoday.We
are now dealingwithit
and you may expect deliverywithin the next
threeweeks.
- Yourorder No.67tz/t is now beingprocessed
and shouldbe readyfor despatchby the end
of this week.
- Wearepleasedto inform you that we have
already madeup your order,N o.99 ot / t / 5,for
5oo bed-Iinenpackets,and are now making
arrangementsfor shipment to Rotterdam,
3
q
5
5
6t
I
o
E
o
Placingan order:
cwering lcttcr
Head Ofhcc
, F. Lynch & Eo. Ltd
N essonH ouse
F.Lynch& Co.have
decided
to placean
orderwith Satex5.p.A.
>seeprevious
corespondence
on
pages45and58andare
sendinga coveringletter
with the orderform.
N ew el l S treet
B ;.mi nghan!
8J 3E L
Tel ephone,+44 @)z t 216 657t
Fax:+44 (o)21236 8592
Lm,rrl p<rane@l yn c hc o,uk
r./'.vwlynch Conl
Your ref
D/7439
Ourref: OrderDR4316
9 March 20o
g
o
SatexS.p.A
Via di Pietra Papa
00146Roma
ITAIY
q
E
!!
x
ul
Attn. Sig.D. Causio
DearSig.Causio
Pleasefind enclosedour official order,No.DR4316.
Forthis order,we acceptthe 15%trade discount you offered,and the terms
of payment (sight draft, CAD),but hope you are willing to reviewthese
terms if we decideto order again.
Would you pleasesendthe shipping documents and your sight draft to
Northminster Bank (City Branch),Deal Street,Birmingham 83 1SQ.
If you do not have any of the items we have ordered currently in stock,
pleasedo not send alternatives.
We would appreciatedeliverywithinthe next sixweeks, andlook forward
to your acknowledgement.
Yourssincerely
Peter Cranp
PeterCrane
ChiefBuyer
Enc.OrderNo.DR4316
E1
g
I3
c/
64
Onwhosetermsare
F.Lynch& Co.paying?
lf anyof the sweaters
theyhaveorderedare
out of stock,would
theyaccept
alternatives?
Howsoondo they
wantthe sweaters?
OrdcrfiCIfilN
HeadOffice
NessonHouse
NewellStreet
Birmingham
833Er
F, Lynch & Eo. Ltd
Thisis F.Lynch& Co.l
orderform.
o
CL
o
Telephone:+44 @lzt 46 657l
Fax:+44 (o)zr2368592
Email:pcrane@lynch.co.uk
www lynch com
Orderno.
SatexS.p.A
Via di Pietra Papa
00146Roma
ITATY
DR4315
m
Aut'horized
?eter (ta*tp
Quantlty
Itemdexrlption
Cat.No.
Prkc(ClFtondon)
50
V-neck:30 red + 20 blue
R432
f30.80 each
30
Roll neck 15black + 15blue
Nr54
f20.40 each
30
Crewneck:15green+ 15beige
N157
f23.00 each
40
Crew neck:pattern
R541
f,25.60each
x0,
3
T'
ID
o
o.
o
e
3
Note: Subjectto 5%quantity
discount
comm€nts L5%TradeDisc.allowed. Pytnt. C/D Del.6weeks
Dete
9 March 20-
I In th e e m ail
on
page45,MrCrane
suggestedthat he
might placeordersfor
over5oosweaters,
butthis orderisfor
onlyr5o.Whydoyou
think it is relatively
sma l l ?
Whichreference
the
identifies
sweaters?
Whatsortof
havebeen
discounts
agreed?
Bywhen shouldthe
order be delivered?
rO
g
lf F.Lynch& Co.have
fu rthercorrespondence
with Satexon this
order,what reference
would they use?
o
o
=
6S
Adnowlcdging
en ordcr
Satexwill now prepare
tlrCrane'sorder,but in
the meantimethey
enrailhimto let him
lnow that the orderhas
beenreceived.
DearMr Crane
=
a
E
a
!
Thankyoufortheaboveordelwhichwe arenowmakingup.Wehavealltheitemsin stock
in thenextfewdays.
andwilladviseyouaboutshipment
B
E
a
E.
6
DanieleCausio
SalesDirector
SatexS.p.A.
Viadi PietraPapa,00146Roma
+3906 769910
Telefono:
+39
Telefax: 06 6815473
Email:causiod@satex.co.
it
Adviceof despatch
YourOrderDR4316
o
e
o
Thisemailmessage
I
confirmsthat Satexhave
senttheorder.When
Mr
Cranereceives
theemail,
the Northminster
Bank
w i l li ssueaorsrr
aurH onrrv,
w hi ch
allowsthemto debit
F.Lynch& Co.'s
account.
Theshi ppi ng
docume nt s
willthenbesentto
F.Lynch& Co.,sothat the
goodscanbecollected,
Remember,this
wasa
tn
crr transaction
where
xl,
paidcost,
the supplier
3
insurance,
andfreight,
Eo
andon a documents
o
againstpaymentbasis.
3
5
Dear Mr Crane
't{e are pleasedto tell you that the aboveorder has been shippedon the SS Marconissa and
sfrouldreachyou in the next 10 days.
ilrleanwhile,
our bank has forwardedthe relevantdocumentsand sightdraftfor t3,092.80,
uhich includesthe agreedtradeand quantitydiscounts,to the NorthminsterBank (City
Branch)Birmingham.
E.
\4/eare sureyou will be very satisfiedwith the consignmentand lookfonrvardto your next
order.
Bestwishes I
DanieleCausio
SalesDirector
SatexS.p.A.
Via di PietraPapa,00'146
Roma
+39 06 769910
Telefono:
Telefax:+39 06 6815473
Email:causiod@satex.co.it
6t
6
o
Placingan order
T'
o
5
G
E
o
o
E
E
G
x
lll
t hene x t
Th i sem ailand
onefollowon from
previous
correspondence
>seepates44 and56.
Therearethreeoarties
involved:
the
Glaston
manufacturers,
Potteries;the
buying
& Lowe;
agents,Sanders
in
andtheirprincipals
MacKenzie
Bros.
Canada,
Here,Ms Loweiswriting
on behalfofher
p ri nc ipals
and
forwardingtheir order.
Noticethe instructions
shegivesandnoticethat
phoned
shehasalready
to
GlastonPotteries
agreetermsof payment,
whichwerenot
mentionedin theirletter
on page56.
John Merton
1432
DearMr Merton
Pleasefind attachedan order (R1432)from our principals,MacKenzieBros Ltd,
1-5 WhaleDrive,Dawson,Ontario,Canada.
They haveaskedus to instructyou that the 60 sets of crockeryorderedshouldbe packed
in 6 crates,10 sets per crate,with each pieceindividuallywrapped,and the cratesmarked
clearlywith their name,the words 'fragile'and 'crock ', and numbered1-6.
They haveagreedto pay by letterof credit,which we discussedon the phonelastweek,and
they would likedeliverybeforethe end of this month,which shouldbe no problemas thereare
regularsailingsfrom Liverpool.
lf the coloursthey havechosenare not in stock,they will acceptan alternativeprovidedthe
designsare those stipulatedon the order.
Pleasesend any furthercorrespondencerelatingto shipmentor paymentdirectto MacKenzie
Bros,and let us havea copyof the commercialinvoicewhen it is made up.
Manythanks
LindaLowe
o
Cl
=
orz
68
Whatinstructions
havebeengiven
aboutpacking?
Whatmethodof
paymenthasbeen
arranged?
3 Whyshouldthere
beno problemfor
GlastonPotteries
to
deliverwithinfour
weeks?
4 Willsubstitutes
be
acceptable
if Glaston
Potteries
areout of
stockof anyitems?
5 Sanders&Lowehave 6
completed
theirjob,
whichwastofinda
supplier.
Sowho must
GlastonPotteries
writetonow?
Wh i c h w o r d s i n t h e
e m a i l h a v ea s i m i l a r
m e a n i n gt o t h e
following?
a cupS,saucers,
plates,etc.
b large,wooden
boxes
easilydamaged
or broken
d stated
e completed
Adviceof despatch
Dear Mr MacKenzie
-he aboveorder has now been completedand sent to LiverpoolDocks,where it is awaiting
@ding on to the SS Manitoba,whichsailsfor Dawson,Canadaon 16 Julyarriving30 July.
,$lhenwe havethe necessarydocumentswe will transferthem to BurnleyCity Bank,your
mnk's agentshere,and they will forwardthem to the CanadianUnionTrustBank.
have
GlastonPotteries
madeuptheMacK en zie
orderandnowadvise
themofdespatch.
MacKenzie
Broswill
haveopeneda
already
letterof credit>see
pager55at theirbank,
TheC anadi an
U ni on
TrustBank,in favourof
GlastonPotteries.The
bankw i lno
l w
C anadi an
wait untiltheyhave
of
confirmation
fromtheir
shipment
agentsin England,
Burnley
CityBank,
and
willthentransfer
the
moneysothat Glaston
Potteries
canbepaid.
o
e
o
5
tn
xq,
3
It
o
o
3
t
'rrfehavetaken particularcareto see that the goods havebeen packedas per your
nnstructions:
the six crateshavebeen markedwith your name,and numbered1-6. Each crate
measures6ft x 4ft x 3ft and weighs5 cwt.
lrllbmanagedto get all itemsfrom stockwith the exceptionof Cat. No. G'l 6, which is only
arrailablein red, but we includedit in the consignmentas it was of the designyou askedfor.
llfyou need any further information,pleasecontactus. Thankyou very much for your order.
We lookforwardto hearingfrom you again soon.
John Merton
SalesManager
Gl
otteriesLtd
Cl
B ur nleyB B 101 R Q
rer +44 (0)128246125
Fax'.+44 (0)128263182
Email: j. merton@glaston.co.uk
3 Whatwill happen
to
Ho w willt he
once
thedocuments
consignment
besent?
GlastonPotteries
Whenisit dueto
receive
them?
arrivein Canada?
4 WhatdidGlaston
Potteries
do about
the itemtheycould
notsupply?
5 Whichwords in the
e m a i l h a v ea s i m i l a r
meaningto the
following?
a essential
b forwarded
c in accordance
with
d apart from
rO
tr
o
6
f.
o
=
69
o
D EL A YSIN D E T IVE R Y
If goodsareheld up either beforeor after
they are sent,you must keepyour customer
informed.Statewhat has happened,how it
happened,and what you are doing to put
things right In thesecasesthe speedof email
is very useful.If email is not available,then fax
or cableshouldbe usedasthe sooneryour
customeris informed,the soonerthey cantake
action.It is a goodideato keepcopiesof any
messagesyou sendabout delays.
- I wassurprised
and sorryto hearthat your
(OrderNo.n45) had not
consignment
you.On enquiryIfound that it had
reached
beendelayedby a localdisputeon the cargo
vesselSSHamburg on which it had been
Ioaded.Iam now trying to get thegoods
transferredto the SSSamoa,which is
scheduledto sailfor Yokohamabeforethe end
of next week.I shall keepyou informed.
- I amwriting totellyouthat unfortunately
therewill be a three-weekdelayin delivery.
Thisis due to afire at our Greenfordworks
which destroyedmostoJthe machinery.Your
orderhasbeentransferredto our Slough
thereassoonas
factory and wiII beprocessed
possible.I apologize
this
delay,
which is
for
beyondour control.
due to circumstances
- Weregretto inform you that there will be a
delayin gettingyour consignmentto you
Thisis due to the cut in suppliesfrom Gara,
where,asyou may be aware,civil war broke
out last week.Wehavecontacteda possible
supplierin Lagosand he wiII let us know if he
can help us.If you wish to cancelyour order,
pleaselet us know as soonaspossible.
However,I think y ou willf nd most
manufacturersareexperiencingthe same
dtficulties at present.
CL
o
Youmay be out of stockofthe productordered,
or you may no longer make it. Note that, in
either case,youhavean opportunityto sell an
alternative product seepage48,but
remembernot to criticizethe productyou can
no longer supply.
- Wearesorryto saythat we arecompletelyout
of stockof thisitem and itwillbe sixweeks
beforeweget our next delivery,but please
contactusthen.
- Weno longermanufacturethisproduct as
demandoverthepastfewyearshasdeclined.
- Thankyoufor your orderfor heavy-duty
industrialoveralls.Unfortunatelywe have
run out ofthe strengtheneddenim styleyou
askedfor.Asyou particularlyspecifedthis
material,wewill not offera substitute,
but
will inform you immediatelywe receive
deliveryoJa newconsignment.This
willbe
within the next two months.
- Wereceivedyour orderfor ACNdynamos
today,but regretthat due to a strikeat the
ACNfactory we are unabletofulfl it at
present.Weareawarethat other modelswill
not suityour requirements,
but hopethat the
disputewiII besettledsoonand that wewill
beableto supplyyou. Wewill keepyou
informedof developments.
5
R EF U SIN GAN O R D E R
Thereare a number of reasonsfor a company
to refusean order,and someof the most
common are given below.Whateveryour
reason,you must be polite:the words reject
andrefusehave a very negative tone, therefore
it is better to usedeclineor turn down instead.
71
5
o
!t
o
5
8 a d re p u ta ti o n
The customer may have a bad reputation
for settling their accountsor,in the caseof a
retailerof, say,electricalor mechanical
products,may have offered a poor after-sales
servicewhich could in turn affect a
manufacturer's or supplier'sreputation. In
thesecases,it is betterto indicateterms on
which you would be prepared to acceptthe
order,or, as in the last two examplesbelow,
find a diplomatic way of saying'no'.
- Wewould only beprepared to supply on a
cashbasis.
- Weonly supplyon payment againstpro
forma invoice.
- As thereis heavydemandat present,wehave
veryfew of theseproducts in stockand are
servingon a rota basis.Itis extremelyunlikely
that we wiII be ableto deliverwithin the next
fourmonths.
- As our plant is closingfor the summer
vacationwe would not beableto processyour
orderfor the dateyou havegiven.Therefore,
regretfully,wehaveto declineit.
- I am sorryto saythat we must turn down
your orderas we haveJullorderbooksat
presentand cannotgive a definitedateJor
delivery.
U n fa v o u ra b l e te rn rs
The suppliermay not like the terms the
customerhas askedfor, either for delivery:
- Deliverycannotpossiblybeguaranteed
wtthinthe time given in your letter.
- Two months must be allowedfor deliveryas
we are dependenton our suppliersforraw
materials.
or discount:
- Itwould be uneconomicalforusto ofrerour
produds at the discountsyou suggestas we
workon afast turnoverand lowprofit margins.
- Theusualtradediscountist5o/o
in this
country which is5%Iowerthan thefigure
mentionedin your letter.
- Thediscountyou askedJorisfar more than
we ofer any of our customers.
72
or payment:
- Weonly acceptpayment by letter of credit.
- Weneverofferquarterlytermson initial
orders,evento customerswho canprovide
references.
However,wemight considerthis
sort oJcreditoncewe haveestablisheda
trading relationship.
- Our companyrelieson quicksales,lowprofi.ts,
and afast turnover,and thereforewecannot
offer Iong-term creditfacilities.
S i re of order
The quantity requiredmight be too large:
- Wearea small companyand couldnot
possiblyhandlean orderfor zo,ooo units.
- Unfortunately,ourfactory doesnot have
facilities to turn out 3o,ooo units a week.
The quantity requiredmight be too small:
- Weonly supplyordersforballpointpensby
the gross,and thereforesuggestyou try a
wholesalerrather than a manufadurer.
- The shirtswe manufacture are sold by the
dozenin one colour.I regretthat we neverseII
individualgarments.
- Ourfactoryonly sellsmaterial in 3o-metre
rollswhich cannotbecut uo.
Delayin delivery
P a n t o n M an u fa ctu r in g L td
P a n t o nW or ks I Ho u n slo w M id cie se x ] r w6 za o*
FENTt r N
o
CL
o
r E L EP Ho N r + 4 4 @ ) zo 8 3 5 3cr z5
F A cs I M I r E + 4 4 @ ) zo 8 3 5 36 7 8 3
et " r a r r d p an to n @ p a n m a n co .u k
8 October20MrH.Majid
Majid Enterprises
Grant Road
Bombay
INDIA
5
m
x!,
3
g
o
o
DearMrMajid
o
I am writing to you concerning your order,No. CU1154/d,which you placed
four weeks ago.At that time we had expectedto be ableto complete the
order well within the delivery date which we gaveyou of 18June,but since
then we have heard that our main supplier of chrome has gone bankrupt.
trtwill be necessaryto flnd an alternative supplier who can fulf.I all the
outstanding contractswe have to complete.As you will appreciatethis will
take some time. but we are confi.dentthat we should be able to deliver
consignments to our customersby the middle of next month.
The units themselveshavebeen assembledand only needcompleting.
We regret this unfortunate situation over which we had no control, and
apologizefor the inconvenience caused.We will understand if you wish to
cancelthe order,but stressthat we are confident that we will be able to
complete delivery by the middle of next month.
Pleaselet us know your decisionas soonas possible.Thankyou for your
consideration.
Yourssincerely
D. Pantow
D.Panton
Managing Director
R eg,s 'i rei :' 'l o Er g and
266.c
Why havePanton
Manufacturingnot
completedthe order?
Whendotheynow
expectthe orderto be
completed?
Whatisthe'decision'
referred
to in the last
paragraph?
How do they intend
to overcomethe
problem?
CanMajidEnterprises
cancel
the orderif
theywantto?
Whichwordsin the
letterhavea similar
m e a ni ng
to the
following?
with reference
to
unableto payone's
debts
certain
put together
e trouble
t
understanding
5
73
5
!,
Refuringan order
!
!-l se nlog g l X h G
A ri a t
- i 10 -
o
:]ETJ-XJ
t ur0
o
B
F
r
I
ttu
u
lflootions.
E==- ==
ro...
I Ericvan Gellen
_I
OrderHU14449
Attn: Eric Van Gellen
'E
o
Thank you for your order,No. HU 14449,which we receivedtoday.Unfortunately,
we cannot
offerthe 35% tradediscountyou askedfor.25o/ois our maximumdiscount,evenon large
orders,as our pricesare extremelycompetitive.Therefore,in this instance,I regretthat we
haveto turn down your order.
g
r
E
G
x
t!
DenisYork
SP Wholesalersplc
King'sLynn,Norfolk
PE3O4SW
Tel; +44 (0)1553 60841
Fax:+44 (0)I 553 60923
Email:d.york@spw.co.uk
c
74
WhydoesMrYork
refusethe order?
I Howdoes he
generalizehis
refusal?
I What isthe
implicationof in this
instancein the last
sentence?
fl
+t
Proforma
g
n
n
n
n
o
E
ttr
o-
EXAM PT T S
t r Afr Pt(
t
78
78
78
79
8o
8r
8z
83
I N V OIC E S A N D S TA TE M E N TS
lnvoices
Proformainvoices
Statements
ofaccount
SETTLEMENO
T FACCOUNTS
Methodsof payment:trade
within the UK
Methodsof paymenttradeoutsidethe UK
Adviceof payment
Acknowledgement
of payment
InvoiceI
Invoice2
Strtementof lccounl
8+ Adviceof paymentI
85 Adviceof payment2
86 D E L A Y E DP A Y M E N T
86 Askingfor moretime to pay
86 Replying
to requests
for moretime
87 R E q U E S T SF O RP A Y M E N T
8t Firstrequest
8t Secondrequest
88 Thirdrequest(finaldemand)
8g Requcrtfor moretime
to mo.elame
9o Agteeing
for rn ertenrion
91 Requert
92 Oflerof a compromite
93 tirlt requerl
94 Rcplyto 6rrt requcrl
95 Sccondrequelt
96 Rcplyto rc(ondrequerl
97 Thirdrcquert(llnaldemand)
98 Pointsto remember
I NVO I CE5 AN D STATEM ENT S
INvorcrs areoneof the main documents
usedin trading.They are not only requestsfor
payment but alsorecordsof transactions
which give the buyer and sellerinformation
about what has beenbought or sold,the terms
ofthe sale,and detailsofthe transaction.An
invoicemay be accompaniedby a short
coveringletter or email offering additional
information the customermight need.
- Please
fnd enclosedour InvoiceNo.ary5tfor
tlzg.+l Theplugsyou orderedhavealready
beendespatchedto you, c/r, andyou should
receive them within the nextfew days
(No.ou67)for t74 6o is
- Theenclosedinvoice
'Layeazee'
z
chairs
at t 54o.ooeachlessy%
for
trade discount.Welookforward to receiving
your remittanceand wiII then sendthe chairs
c/F.
- OurInvoice,N o.r n y 5n 6Jor €6,78o.oo net is
attached Welookforward to receivingyour
cheque,fromwhichyou may deduct3%cash
discountif payment is madewithin seven
days.
packedand awaiting despatch.
As soonaswe
your chequewe will sendthegoods
receive
which shouldthen reachyou within aJew
days.
- Wearesendingthe enclosed
proforma (No
n gt9t)for f,j,96o gross,forthe consignment
oJchairsyou orderedon approval.Wewould
appreciateit iJyou couldreturn any unsold
chairsby the end of May asagreed.
- Proforma invoice,No.pt77t5,isfor your order,
No 652u74,in confirmationof our quotation.
Thetotal of f, t5,j5t includescost,insurance,
andfreight.
!
!J
3
o
t
6
Ratherthan requiring immediate payment of
invoices,suppliersmay offer credit seepages
rt8-r35 in the form of open accountfacilities
for an agreedperiodof time, usually a month
but sometimesa quarter (threemonths).At the
endof the peri oda sTA TE ME NoF
T A ccouNT
is sentto the customer,giving detailsof all the
transactionsbetweenthe buyer and selierfor
that period.The statementincludesthe
BALANcEonthe account,whichis brought
forward from the previousperiodand listed as
A N d P TS IT
A C C OU N T R E N D E R E D . IN V Oi C C S
A pno ronua rNVorcEis onewith the words
proformalyped or stampedon it, and is used:
- If the customerhas to pre-pay(i.e.pay for
goodsbeforereceivingthem),they pay
againstthe pro forma
- If the customerwants to make surea
quotationwill not be changed,the proforma will sayexactlywhat and howthey
will be charged
- If goodsare sent on approval,on saleor
return, or on consignmentto an agent who
will sellthem on behalf of the principal
- As a customsdocument
A coveringletter may accompanya pro forma
InvoIce.
- TheenclosedProforma No.tt64for f.8,25j.76
isfor your OrderNo.ct534,which is now
NorEs seepagerr areadded,while
paymentsand cnrplr NorES seepagerrl
are deducted.
Statementsof accountrarelyhaveletters
with them unlessthere is a particularpoint
that the supplierwants to make,e.g.that the
accountis ovERDUE,or that somespecial
concessionis availablefor prompt payment,
but a complimentsslip may be attached
Notethe expressionns a'r (e.g.asat jt
March),whichmeansup to this date.
- I enclose
your statementasat 3t luly. May I
remindyou that your |une statementis still
outstanding,and askyou to settleassoonas
possible?
- Pleasefnd enclosedyourstatementoJ
accountas at jt May thisyear.If the balance
of ft6t is clearedwithin the next sevendays,
you can deducta 3%cashdiscount.
77
c
a
SE T T T EME N TO F A C C O U NTS
a
Me th o d r o f p a y n re n t:tra d e w i thi n
th e U K
E
c
Here is a list of methods of payment which can
be used in trade within the UK.
6
Bankdraft
In the caseof a sarvr pnarr,the customer
buys a chequefrom the bank for the amount
he or shewants to pay and sendsit to the
supplier. Banksusually require two of their
directors'signatureson drafts,and make a
small charge.
Banktransfer
A saNx TRANsTER
is when a bank moves
money by orderfrom one accountto another.
Billofexchange
(n/r ) transactionsthe
In slrl oF EXCHANGT
supplier draws a bill on the customer.The bill
statesthat the customer will pay the supplier
an amount within a statedtime, e.g.thirty
days.The bill is sent direct to the customer or
paid through a bank.If the bill is a srcnr
pnerr, the customerwill pay immediately (i.e.
on'sight'or presentation).If the bill is arERM
DRAFrthe customersigns (accepts)thebill
beforethe goodsare sent and payslater.
pages47-154for moreon bill of exchange
' See
transactions.
Cheque
The customermust havea CURRE
NT
AccouNT,or certaintypesof savrncs
eccourvr, to pay by cheque >seepagesr38-r39.
Chequescan take three working daysto clear
through the commercialbanks,and can be
open,to pay cash,or closed(crossed),
to be paid
into an account.
Credittransfer
In th e c a s eo f c R E D rrrR AN SrE R S ,the
customerfills out a bank crno slip and hands
it in to a bank with a cheque.The bank then
transfers the money to the supplier.
Debit/ creditcardpayment
Dnnrr andcnEDrrcARDpaymentscanbe made
either direct on the phone,or on the Internet.
It
letter ofcredit
A l rrrrn or cR E D rr(l f c) i sadocument
issuedby a bank on a customer'srequest,
ordering an amount of money to be paid to a
supplier. Paymentsby letter of credit can be
made within the UK,but this method is
more common in overseastransactions
>seePage79.
Cashon delivery
(coo) is a serviceofiered
CesH olu DELTvERy
bythe PostOffice.Theywill delivergoodsand
acceptpayment onbehalf of the supplier.
PostOfficeGiro
The PostOfficeGiro system allows a customer
to senda payment to a supplier,whetherthey
have a PostOfficeGiro account or not.
Postalorder
Posrar oRDERscanbe boughtfromthe Post
Office,usually to pay small amounts, and sent
to the supplier direct.They can either be
cRossED,inwhich casethe money canonly be
paid into the supplier'saccount,or Ieft openfor
the supplierto cash.
Methodr of payment; trade outri de
the U K
Banktransfer
The customer orders a bank to transfer money
to the supplier'saccount.If telegraphed,this is
(rr). The
known asa rE LEGRAeHTc
TRANsFER
Interbank
Financial
Societyfor Worldwide
Communications(swlrr) offersa twentyfour-hour international bank transfer service.
Businesses
in EuropeanUnion(ru) countries
often usethe swrFr system.Paymentsare
subjectto r u directives,e.g.transfershaveto
be made within six days.
Billofexchange
The procedureis the same as that for trade in
the UK, but shipping documents usually
accompanybills when the bank acts as an
intermediarv in international transactions.
Cheque
It is possibleto pay an overseassupplierby
cheque,but it takesa long time beforethey
get their money.In a transactionbetween
businessesin Germanyand the UK,for
example,the suppliercouldwait up to three
weeksfor payment.
Documentary
credit
When a letter of credit is accompaniedby
shipping documentsit is calleda
D o c u M xN T A n Yc n r p rr. T h emo neyi s
creditedto the supplier'saccountas soonas
confirmationof shipment is made.
Seepagest55-'166formoreon documentary
credittransactions
International
bankdraft
An rN rrn re rro N Ar B AN KD R A rr i s a cheque
which a bank draws on itself and sellsto the
customer,who then sendsit to their supplier.
The supplier'sbank shouldusuallyhaveeither
an accountor an agreementwith the
customer'sbank
I moneyorder
Internationa
(l tvros)
I N rn n rrl a rIo N ALMo N Ey o R D ER S
can
be bought at most banksinthe UK and are
paid for in sterling or dollars.Thebank fllls out
the orderfor the customerthen, for a small
charge,handsthe IMo over,and the buyer
sendsit to the supplier.Iuos can be either
cashedor creditedto the supplier'saccount.
lnternationalPostOfficeGiro
Paymentby InternationalPostOfficeGiro can
be made when either the customeror supplier,
or both, do not havebank accounts.An order
for the amount to be paid is fllled out at a Post
Office,which forwards it to the Giro Centre The
Giro Centrewill sendthe amount to a Post
Officein the supplier'scountry,where the
supplierwill receivea postalcheque.They can
then either cashit, or pay it into a bank
account Girosare chargedat a flat rate.
Promissory
note
A pnours s oRy Norx is,strictlyspeaking,not
a method of payment but simply a written
promisefrom a customerto a supplierthat the
former will pay the amount stated,either on
demand or after a certain date In effect,a
promissorynote is an rov (I oweyou).
Correspondence
advisingpayment,
particularly in the UK,tends to be short and
routlne.
- Wehavepleesurein enclosingour postal
order/ cheque/ bank draftJor fin
payment of your statementInvoiceNo.dated...
- I haveinstructedmy bank today to transfer
ft,t6t.ooto your accountin paymentoJyour
31Maystatement.
- Wehavedrawn a chequefor fz67.ooin
payment of your InvoiceNo.tzjt datedz
August Thiscan bepaid into your accountor
cashedat any PostOfi.ce.
!
ql
3
o
=
6
Correspondence
confirming payment in trade
transactionsoutsidethe UK maybe more
complicatedif you want to make specific
points.
- Thankyoufor your prompt delivery.Please
find enclosedour draJtfor t4841 drawn on
EastlandCityBank,Sommeryille.Couldyou
please acknowledge receipt?
- Wewouldliketo informyouthatwe have
arrangedfora credittransferthrough our
bank,the Hammergsbank,Berg en,Jor t 3,tzo
in payment of InvoiceNo.nt64t. Couldyou
conrtrmthe transferhasbeenmadeassoon
as the correspondentbank advisesyou?
- Wehavepleasurein enclosing
our bankdrafi
f,5,t4t.5j
as
payment
on
Proforma
Invoice
for
No.55t2.Pleaseadviseus when the goodswill
beshippedand are likelyto reachBarcelona.
- Youwill bepleasedto hearthat we have
accepted
your bill and now havethe
documents.Weshall collectthe consignment
assoonas it arrivesin Bonnandpayyour bill
onthe dateagreed.
- Our bank informsus that they now havethe
shippingdocuments,and wiII betransferring
theproceedsof our letterof creditto your
account.
79
tr
o
gementof payment
Acknowled
G
A
Correspondenceacknowledging payment also
tendsto be short.
- Thankyoufor your draft / credittransferfor
fin payment of our statement/ invoice
No.dated...
- Our bank advisedus today that your transfer
oJfg,76t.oowascreditedto our account.
Thanky oufor p aying sopr omptly,and we
hopeto hearfromyou again soon.
- Wereceivedyour Giro slip today informing us
that you hadpaid tt,tz6.oo into our account
in settlementof invoiceNo.r,4t. Thankyou
for letting us know,and we lookforward to
hearingfromyou again in the nearfuture.
- Thankyoufor sendingyour draftfor invoice
No.tt87t sopromptly. Wefeel sureyou wiII be
pleasedwith the consignmentand look
forward to receivingyour next order.
- Wereceivedadvicefrom our bank this
morning that your transferfor invoiceN o.
ntt64thas beencreditedtoour account.We
would liketo thankyou, and would bepleased
to helpif you needfurtherinformation,or
would liketo placeanotherorder.
- Our bank informedus today that you
acceptedour biII (No.sz zz5l andthe
documentshavebeentransferredto you.We
aresureyou wiII bepleasedwith the
consignment.
- TheNippon Bank in Tokushimahave told us
that the proceedsofyour letter of credit have
beencreditedto our account.Thankyoufor
your custom,and we hopeyou wiII be in touch
wtth us again.Wehavepleasurein enclosing
our newsummercatalogue.
E
6
to
Invoice1
ro
G&RHffiectrFse*Ltd
tnvorce
35HillStreet
Seacroft
Leeds
LS14 1N D
+44 (o)u3 64or8r
Telephone
+44 (o)ttl 6$7 8z
Facsimile
Emailaccounts@drelec.co.uk
InvoiceNo. 81951
To P.Gwent & Co.Ltd
43 RingRoad
LeedsLS162BN
Thisis a relativelysimple
invoice.Note the
additionforValueAdded
Tax (var) and PosrAGE
P&P).
A N D P A C K T N(G
The lettersrgor at the
bottom mean ERRoR5
!
!l
-3
o
I
AN D OM ISSION S
E xcE P TEi nDother
;
' words,if thereisa
mistakeon the invoice,
the supplier
hasthe
right to correctit by
askingformoremoney
orgivingarefund.
6
ln
x
!,
g3
YourorderNo. L57/5
lD
=
Date 1May20-
I
al
o
Number
Description
Total
40
RVA250volt plugs @55p.each
t26.OO
AddvATl7.5%
L4.55
Addp&p
t4.oo
[34.55
E&OE
Registered
LondonNo.n5662
vA r R eg.N o.154662219
8t
tr
o
E
o
a
6
1)
.9
0
.=
o
CL
E
l!
x
ut
lnvoiee2
Thisinvoiceis rather
lt is
morecomolicated.
from Claston Potteries
to their Can ad ian
MacKenzie
customers,
Bros.lt would be sent
with copiesand shipping
documentstoThe
C anad ianUn ionTrust
B ankvia the Burn ley
B ank.wh oa re
agentsin
MacKenzie's
the UK.These
documentsprovethat a
shiomenthasbeen
madefrom Claston
Potteriesto MacKenzie
Brossothat the
C anad ianb an kcan no w
releasethemoneythat
MacKenzieBrossaid
they would pay in their
will
letterof credit.There
alsobe a dd ition al
chargesthat MacKenzie
B roswill pa yth eirba nk
f or ha nd lingthe
transaction.
It might be helpfulto
refer backto enquiry,
reply,order,and advice
r seePa8es44,56,68,
and 59.
Youwill seefromthe
i nvoicethat c rr charges
havebeendeducted
from the grossprice.This
is becauseunderUK law
the customermust be
told exactlywhat they
are payingfor.Andin
t his ca secr r h asa lso
beendeductedsothat
the ro% specialdiscount
can be taken offthe net
c,ayre,rlIBun,ey
BBio,F,.,
T$
;:?Tt?lrr
rro
i .- F i r l ,.- r ,r {i I I ( o) 1132 4( ) tr r ,
' l r r ) r ff r fy r l fl i
[" r i r :r l [.] '
Invoice
No.1096/A3
'r 'l '.,i C :ttc tl Ltk
11July20-
MacKenzieBrosLtd
1-5 Whale Drive
Dawson
Ontario
CANADA
YourorderNo.R1432
Qu a n tity
D escri pti on C at.N o
i eaei r
35
10
15
10
Earthenware
Wedgwood
Bone/Tea
StaffordshireRed
Rt94
wl6l
T2l
s73
CIF
LessCost& Freight
Liverpool-Dawson
LessInsurance
10%discountoff net price
set 1,925.00
set 475.00
set 345.00
set 526.00
@ 55.00
@ 47.50
@ 23.00
@ 5260
3,271.00
3,271.00
3U.00
292.O0
2,632.00 LessDisc
zo7.z v
Total
2,368. 80
Pnce.
E&O E
,-' , \l.i.lhlijl
,
:i
Which reference
w ould Ma cKe nzie
Brosusewhen
referringto this
invo ice ?
8z
What doesthe
s ign@ m eanin t he
calculations?
What isthe net total
ofthe invoice?
4 What chargeshave
beentaken offthe
grossprice?
.1.,
How haveGlaston
Potteriesindicated
they havethe right to
correctthe invoiceif
there is a mistake?
lt,l,)
ljSl,llroli
Statementof
account
Furniture
Ltd
Telephone:
+44 (o)r52826755
Fax:+44@)t628
26756
Email: accou
nts@seymore.co.u
k
Registered
No.r85r439r
London
var No z3r61883r
TibStreet
Mai denhead
B erkshi re
s L6 5D 2
UK
3i May 20C.R.Mendez SA
Avda del Ej6rcito 83
E-48015Bilbao
Date
Item
Debit
Credit
B al ance
20-
f
+
f
L
lMay
Account Rendered
2May
Inv.18992
8May
D/N 311
12May
Cash
14May
Inv.18995
20May
c/N c517
25May
Cash
270.00
260.00
530.00
52.00
582.00
100.00
720.OO
Thisstatement
isan
accountofthe
transactions
that took
placeoverthe monthof
MaybetweenSeymore
Furniture
andtheir
customer.
C,R.
M€ndez.
Youwill seethat a debit
note(o/tt 3rr)anda
creditnote(c/r.rC5r7)
areIistedaswellasthe
i nvoices
theycorrected.
Therearealsotwo
paymentswhich
are
listedhereascash,
althoughtheword
chequecan
alsobeused
in this context.
!
t
-3
o
5
6
ln
x
!,
3
Eo
6
ol
o
3
o
I
482.OO
7,202.OO
80.00
600.00
1,122.00
522.00
E.& O.E.CashDisc.3%
if paidwithin7 days
HowmuchdidC.R.
M€ndezoweat the
beginning
ofthe
month?
Howmuchwasthe
errorin theirfavour?
Whatdidtheypay
d u ri n g th em o n th ?
5 H o w w i l l thei rrJune
statement
ooen?
rO
tr
o
Whatwasthe totaI
amountof their
purchases
during
May?
6 lsthereanallowance
for payment
withina
certaintime?
o
t
83
tr
o
E
a!
4
6
o
g
sr
E
a!
x
lll
Ad vic e of
p Jym0nt I
Thislettercontinues
previous
correspondence
r
pagezt!(enquiry),
'ee (replyand
page
58
quotation),pages54-55
(order),and pages66-67
(theemailmessages
acknowledging
the
orderandadvising
despatch).
Thecustomer,
Mr Craneof F.Lynch& Co.,
usesthisconfirmation
of
payment
to askforthe
termsof paymentto be
revised
>seealsopage
rr8.lf you lookbackto
page58,youwill seethat
saidthey
SatexS.p.A.
wouldreviewtheterms
aftera while.Notice
howtheletterbegins
of
with confirmation
payment,
thenstatesthe
present
arrangement,
t he
a n dfinallym ak es
nextordersubjectto
Mr Causio
accepting
the
newterms.The
Ietteris
firm,butstillpolite.
Forthiskindof
corresoondence
a letter
than
ismoreappropriate
anemailmessage.
'-rc Ofi rce
F, Lyneh R"EE" ttd
'j a- r - ) O nF l oLtSr .
1,,1\iile I Sireet
F r , i :i r ngh a m
,r I l i ;
i erepl .cne:+44l oJzt z 1' o6r,1' .
Fax +44 (o):r 236 859 :
E-.rai r.ocrane@l yncirco uk
Yi r \\^.ij y nC l i ac ffr
'/a'i r r : a
!,)),
OrderI4463
16lune 20-
SatexS.p.A.
Via di PietraPapa
00146Roma
ITALY
Attn Mr D. Causio
DearMr Causio
Thankyou for being so prompt in sendingthe documentsfor our last order,
No.14463.We haveacceptedthe sight bill, and the bank should sendyou an
advice shortly.
We have been dealing with you on a cashagainst documents basisfor over
a year and would like to changeto payment by 4o-day bill of exchange,
documentsagainst acceptance.
When we flrst contactedyou last Februaryyou told us that you would be
preparedto reconsiderterms of payment oncewe had establisheda trading
association.We think that sufficienttime has elapsedfor us to be allowed
the terms we haveaskedfor. If you needreferences,
we will be glad to
supplythem.
As we are planning to send another order within the month, could you
pleaseconfirm that you agreeto thesenew terms of payment?
Yourssincerely
Pe,ter {t'a.t',a,
PeterCrane
ChiefBuyer
84
Adviceof
payment2
!
ol
3
o
t
Thi semaial
l so
previous
continues
correspondence
>seepage44 (enquiry)
page56(reply),page58
(order),page69 (advice
of despatch),
andpage
8z (invoice).
MacKenzie
Brosusethe emailboth
to confirmpaymentand
to makea complaint
aboutthe packing
>seealsopagesroo-rt6,
ln
Notethat MacKenzie
x0,
Broswill accepteither
3
g
replacements
forthe
o
brokencrockery
or a
o
3
creditnote.Claston
c,
=
Potterieswillclaim
on
theirinsurance
company
forthebreakages,
althoughtheymight not
getcompensation
as
theyhavebeen
negligent
in their
packing.
6
blb haveinstructedour bank to arrangefor a letterof creditfor €6,158.92to be paidagainst
tour pro forma invoiceNo. G1'152iS.The proceedswill be creditedto you as soon as
CanadianTrustreceivethe documents.
We usuallyask you to wrap each pieceof crockeryindividuallyand pack no morethan ten
sets intoa cratpto allowfor easy and safe handling.This was not donewith our last
consignmentand as a consequencetherewere breakages(see attachedlist).We would like
eitherreplacementsto be includedin our nextshipment,or your creditnote.
RichardMacKenzie
8S
c
o
DELAYED PAYM ENT
E
|!
4
6
This is an areaof correspondence
where you
must useyour own judgement about how
confidentialthe information is.Would an open
systemlike email or fax be satisfactory,or
shouldyou senda letter?Thesesituationscan
be sensitive.
If you arewriting to a supplierto explain
why you havenot clearedan account,
rememberthat they are mainly interestedin
whenthe accountwill be paid.So,while you
must state why you have not paid, you must
alsoexplain when and how you intend to pay.
Beginthe letter with your creditor'sname
(this should alwaysbe done once
correspondence
has beenestablished,but it is
essentialin this case:if you owe someone
money,you shouldknow and usetheir name).
Referto the accountand apologizein clear,
objectivelanguage(i.e do not useoverelaboratelanguagelike P/easeforgive mefor
not settlingmy indebtedness
toyou).Noticethe
verbsclearand settle(an account)are used
ratherthanpay.
- I am sorrythat I wasnot ableto clearmy luly
accounl
- Weregretwewereunableto senda chequeto
settleour accountfor the last quarter.
Explainwhy you cannot clearthe account,but
do not be dramatic
- Thedock strikewhich hasbeengoing onfor
thepast sixweekshasmadeit impossible
to
shipour products,and asour customershave
not beenableto pay us,we havenot beenable
yet.
to clearour own suppliers'accounts
- A warehouse
flood destroyedthe majority of
theZenithgoo components.We
arewaiting
for our insurancecompanyto settleour claim
sothat we can renewour stockandpay our
suppliers.
- Wewerenot ableto settlethe account
becauseof the bankruptcyoJone of our main
customersThedebtwasconsiderable
and its
losshas made it dtfi.cultfor us to pay our
suppliers
86
Noticein the last exampleabovethat there
is no referenceto the bankrupt customer's
name,nor how much they owed.It would be
unethicalto givethis sort of information.
Also noticehow the debtorgeneralizesthe
situation,explaining that other suppliers
havenot beenpaidyet.
Youmay be ableto pay somemoney
oN AccouNr, i.e.to pay part of what you owe.
This showsa willingnessto clearthe debt,and
will gain your creditor'sconfidence
- Wewill try to settleyour invoicewithin the
nextfour weeks.Meanwhilethe enclosed
chequeJorf,z,soooo ispart payment on
account.
If you cannot offer a part payment, give as
precisea dateof payment asyou can.
- Oncethe strikeis over.whichshouldbe within
the nextfew days,we will beableto clearthe
balance.
- As soonas the insurancecompanysendsus
compensation,
we will settlethe account.We
to
be
within the next two weeks
expectthis
Therearethree possibleways in which you
might reply to a requestfrom a customerfor
more time to settlean account:you may agree
to their request,refuseit, or suggesta
compromlse
Ifyou agreeto the request,a short letter is
all that is needed.
- Thankyoufor your letterconcerningthe
outstanding balanceony our account.
I sympathizewiththe problemyou have
had in clearingthe balanceand amwilling
to extendthecreditfor another sixweeks.
Wouldyou pleaseconfrm that the credit
will besettledthen?
- I wassorryto hearaboutthe dtficulties
you havebeenexperiencingin getting
componentsto completeorders,and realize
that without salesit isdifi.cult to settle
outstanding accounts.
Thereforey our account
hasbeenextendedanothermonth,but I
will haveto insiston payment by the end
of July
If you refusethe request,you will needto
explain, politely, why you are refuslng.
- Thankyou for your letterexplainingwhy
you cannotclearyour lanuary statementfor
appreciateyour dfficulty, but we
f,2,t67.54.1
ourselveshaveto pay our own suppliersand
thereforemust insiston paymentwithinthe
next ten days.Welookforward to receiving
your remittance.
- With referenceto your letterof 6 August in
whichy ou explained why th e outstandtng
invoice,No.vn 88ryo c, hasnot beencleared,
we understandtheproblemsyou havebeen
However,it
facing in the currentrecession.
wasbecauseof thepresenteconomicclimate
that we allowedyou a two-monthperiod to
settle,and while we would liketo ofreryou
moretime to clearthe balance,
our own
position
makes
this
impossible
fnancial
we must askyou to settlethe
Therefore,
accountwithin the next fortnight.
An offer of a compromise(for example
paying part of the money)will alsoneedan
explanation.
- Thankyoufor writing to let us know why
theMay accountis still outstanding.
Unfortunately,we cannotextendthe credit
any longeraswealloweda considerable
d iscountfor pr o mpt p ayment.N evertheless,
in viewof the dificultiesyou havebeen
having with your two major customers,we
arepreparedto compromiseand suggest
that you clearhalf the outstandingbalance
immediatelyby sendinga chequefor
and clearthe remainderby the
f,4,87t.oo,
end of next month. Welookforward to your
remittanceand conf.rmationthat the
balanceof the accountwill beclearedin IuIy.
- I wassorryto hearaboutthe strikewhichhas
heldupproductioninyour plantfor thepast
few weeksand understandwhyyou need
moretime to clearyour account.
when we allowedopenaccount
Nevertheless,
terms,we emphasizedthiswason condition
balanceswereclearedpromptly on duedates
as creditfacilitiesput a strain on our own
cashJlowsituation However,because
of your
previouscustomwith us we are quite willing
to allowyouto clearhalf the balance,[5,t89,
by sendingus a sight draft,seeenclosedB/ n
No.898tot,and clearthe outstandingamount
by acceptingthe encloseddraft a / r No.
898to8,drawn at 3o days WelookJorward to
receivingyour acceptance
and confrmation.
!
OJ
:I
o
=
R E OU E S TSFOR P A Y ME N T
Neverimmediately assumeyour customers
haveno intention ofpaying their accountifthe
balanceis overdue.Theremay be a number of
reasonsfor this: they may not havereceived
your statement;they may havesent a cheque
which hasbeenlost;or they may havejust
overlookedthe account.Therefore,a first
requestshouldtake the form of a polite
enquiry Tryto make the letter impersonal.
Youcan do this by using the definite article,
e.g.theoutstandingbalanceinsteadofyour
outstandingbalance;usingthe passivevoice,
e.g.to beclearedinsteadof whichyou must
clear; and modifying imperatives,e.g.should
insteadof must.Thefirst examplewill give you
an idea ofthis style.
- Weare writing concerningthe outstanding
Octoberaccountfor $qt 6j (copyenclosed),
whichshouldhavebeenclearedlastmonth.
Please
couldyou contactusand let us know
why the balancehasnot beenpaid?
- Wethink you may haveoverlookedinvoice
No.5arytofor f,j5t 95 $eecopy)whichwas
duelastmonth.Couldyoupleaselet ushavea
chequeto clearthe amountassoonas
possible?
If payment hasalreadybeensent,
pleasedisregardthis letter.
6
If a customerintendsto pay,they usually
answera flrst requestimmediately,offering an
apologyfor having overlookedthe account,or
an explanation.But if they acknowledgeyour
requestbut still do not pay,or do not answerat
all,then you can make a secondrequest.As
with flrst requests,you should includecopies
8t
t
o
E
I
Agreeingtomore
time
Thisisa replyto the
previousletter.Herr
the
Schubert
accepts
requestandasksfor
paymentassoonas
possible.
DVBIndustries
GmbH
-
==
---=
::-
==_:
--
Correnstrasse
z5o
D-4oooo M0nster
Tel:(+49)z5t-866t3
Fax:(+49)z5l-goz7r
Email:schubd@dvb.co.de
20January20-
6
L
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3
4
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ul
MsD.vanBasten
Director
D.vanBastenS.A.
Heidelberglaan2
Postbus80.115
NL-3508TC
Utrecht
DearMsvanBasten
Thank you foryour letter of 15January regarding oru November statement
and Decemberinvoice No.7713.
We were sorryto hear aboutthe difficulties youhavehad, andunderstand
the situation. However,we would appreciateit if you could clearthe
account as soon as possible,as we ourselveshave suppliersto pay.
We look forvvard to hearing from you soon.
Yourssincerely
Diptu Schnbut
DieterSchubert
Director
90
Requestfor an
ertension
L. Franksenplc
F'lt'l re of \tal es R oad
5lreffield
s94E x
Tefephcrne,44 1o\74z z 4789
lax +44 lo) 742 z5tca
E mai l f ranksenl ( i ' r.rk co rrf
ln this letterthe
customerasksfor his
bill ofexchangetobe
extendedfor another
sixty days.
!
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3
o
5
19May20MrD.Bishkin
ZenithS.A.
Haldenstrasse118
3000Bern22
SWITZERTAND
6
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3
9o
DearMrBishkln
ID
o
I regret to inform you that I will not be able to meet my bill, No.B/E 7714,for
35,498.00SF
due on 6 June.
My government has put an embargo on all machine exports to Zurimba,
and consequentlywe have found ourselvesin temporary diffi.cultiesaswe
hadthree major cashconsignmentsforthat country.However,Iam at
presentdiscussingsaiesof theseconsignmentswithtwo large Brazilian
importers,and am certainthat they will take the goods.
Could you allow me a further 60 daysto clear my account,and draw a new
bill on me,with interestof, say,6%addedforthe extensionof time?
I would be most grateful if you could help me in this matter.
Yourssincerely
LeoFranJ:r,vt
LeoFranksen
Director
Whatexpression
doesMr Franksen
use
insteadof payl
Whatisan embargo?
HowdoesMr
Franksen
intendto
getthe moneyforthe
cargohecannotsell
to Z u ri mb a ?
Whatsolutiondoes
hesuggest
to the
p ro b l em?
Whichwordsin the
letterhavea similar
meaning
to the
following?
a
b
c
d
rO
not permanent
c
o
large
g
quantityofgoods
a
o
5
(e.g.a bill
prepare
/
of exchange
cheque)
9r
tr
o
E
iE
4
6
tu
s
so.
E
G
x
ul
Ullltol.t
L,)llll'lrllll
\r'
I n this ca seMr Bish ki n,
t he sup plie r,ha sth e
legalright to presentthe
billto his b an kfo r
payment,thenif it is not
paid,callalawyerto
pnoresrthe bill,i.e .
oreventMr Franksen
ot sno no un truc it
(denyingthat it was
presentedfor payment).
Thecostsofthis
procedureare paid by
the customer.However,
the customerin this case
has not saidthey will not
pay,but cannot pay at
oresent.lf Mr Bishkin
to
forcedMr Franksen
pay,theresultmight be
bankruptcy,
and all Mr
B ishkinwou ld g et is a
percentageof his
customer'sdebtslikethe
other creditors.This
couldbe as smallasfive
per cent of the tota I
debt.5ohe doesnot
want to forcethe bill on
yet.On the
Mr Franksen
ot her h an d.h e ha s
waited long enoughfor
his money,andcannot
be expectedto wait
anothersixtydays,even
with the interest
offered.Inhis replyto Mr
Franksenhe offers a
compromtse.
ZerritlrS.A.
23May20Mr L.Franksen
L.Franksenplc
Princeof WalesRoad
Sheffield59 4EX
UK
DearMr Franksen
BiIl No. B/E 7714
I was sorryto learn about the embargoyour governmenthas placedon
exportsto Zurimba and of the problemsthis has created.However,the
abovebill already allows credit for 40 days,and although I appreciateyour
it is
offer of an additional 6%interest on the outstanding 35,498.00SF,
impossible for me to ailow a further 6o days' credit as i myseif have
commitments.
I think the following solution might help us both.
Youneednot add intereston the presentamount,but I have encloseda new
49.0OSF,
dr aft (B/ E773t) f or 17,7
which is half the out standin g b alance,and
will allow you 4o daysto pay it. But I expectyou to pay the remaining
t7,749.ooSFby banker's draft .
Pleaseconfirm your acceptanceby signing the enclosedbill and sendingit
to me with your draft by return of post.
I hope that your negotiations with the Brazilian importers have a positive
outcomeand trust that this setbackwiII soonbe resolved.
Yourssincerely
N.Bishkin (Mr)
Director
Enc.BiIl B/E7731
l sM r B is hk in
sympatheticto
Mr
problem?
Franksen's
92
Why does he say he
cannotwait a further
sixty daysfor
payment?
Doeshewantthe six
percentinterest
addedon?
Whatcompromise
doeshesuggest?
Howwillhe know
that Mr Franksenhas
acceptedhis offer?
Flnt requot
F
-3
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=
(rrdlfl <rr uw
54-y9 f lvrrl&,
Ti l ?phon? ++l (o)29 20 {97r!
Jar: +44 (ol r9 :o 49937
Imai l : rcl i ffFhomGmJl crl (om
l ogi rterrd N o (r|5151
20 November 20R.Hughes& SonLtd
2lMeadRoad
Swansea
West Glamorgan 3ST1DR
6
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DearRobert
I am writing conceming our invoice No. H931for L919.63,a copy of which is
enclosed.It appearsthat this invoice has not yet been settled.
g
o
|D
o
I seefrom our recordsthat sincewe began trading you have clearedyour
accountsregular$ on the due dates.That is why I wondered if any problems
have arisen which I might be able to help you with? Pleaselet me know if I
can be of assistance.
Yourssincerely
Rirllud,
RichardCliff
Director
93
E
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4
6
L
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tll
f.plytofi?rt
nqurt
YouwillseefromMr
Hughes'replyto
Mr
Cliffsletterthatthe
invoicehadbeenpaid,
not bycheque,which
wasMr Hughes'usual
methodofpayment,but
bycredit tra nsfer.lf Mr
Clifihadlookedat his
bankstatement,he
wouldhaveseenthat
the moneyhadbeen
credited.However,asMr
Hughes
changed
his
methodof payment,he
shouldhaveinformed
hissupplier
asbanksdo
not alwaysadvisecredit
isa good
transfers.This
exampleof whyyou
shouldnot assumethat
a customerhasfailedto
payanaccount.
Rememberthat
this
typeofcorrespondence
is besthandledby letter,
notemailorfax.
lR.llughes
& $olt l,Jd
n tcrd lpad, Swrnrar
Strt G,lamorgaNl
lrr lor
teh#.tone: +44 (oh t9t fil r
for:9*ansea +4+ (oh7gz 591::
f,nrorl r hughcr@hugonco ul
24th November 20MrR.Cliff
HomemalcersLtd
54-59 Riverside
Cardiff CFrlJW
DearRichard
I was surprised to receive your letter of 20 November in which you said you
had not receivedpayment for invoice No. H931.
I instructed my bant, The Welsh Co-operativeBank,Swansea,to credit yow
account in Barnley'sBank,Cardiff, with the f 919.63on 2nd November.
As mybark statement showedthe moneyhadbeendebitedto my account,
I assumedthat it had been credited to your account aswell. It is possible
that your bank has not advised you yet. Could you please check this with
Bamley's,andif there are anyproblems let me know, sothatl canmake
enquiries here?
Yours sincerely
Wbe* u"/*
RobertHughes
vrt io rg r)fr 3O
94
J.cond r.qu6t
I NGENIEROS
\ \
I NDU ST RIALES
Errrlodc lbfctr r/n [-tooo9
trn 9cb$lrrn
fcl (r 1f 913 rrrtoo
fer (r14f91361899o
Imerl r <orlclloOrn8cnerot(o 6
Thisisanexample
of a
secondrequestfor
payment,
butyouwill
seethat,eventhough
this isa secondletter,
5rCostello
stillavoidsan
unfriendlytone.
!
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=
tc(h. 30August20tu rtf
llr rel 6t3t02
E
Sig.D.Giordianino
OmegaS.p.A.
ViaAgnello 2153
20121Milano
Italy
I'|
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3
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Dear Sig.Giordianino
With referenceto my letter of 10August, I enclosecopy invoiceswhich
made up your lune statement,the balance of which still remains
outstanding.
Having dealt with you for sometime, we are concemedthat we have
neither receivedyour remittance nor any explanation asto why the balance
of €6,000.00has not beencleared.Pleasewouldyou either replywith an
explanation or send us a chequeto clear the accountwithin the next seven
days?
Yourssincerely
R. Cortelln
R.Costello(Sr)
Credit Controller
Encl.
95
Replyto second
E
o - -.
E requesr
G
a
Omega5.p.A.
VialeMortidio5t269l-torz5Torino
HereisSig.Giordianino's
replyto5r Costello's
letter.
TeIefono (+3$-r - 598t46t
Telefax(4$-l-62835r
Em ai I giordi and@omega.co.it
www.omega.it
vs.rif. 613/O2
Ns.rif.SG/DA
Date l September 20-
SrR.Costello
CreditController
IngenierosIndustrialesSA
Barriode Ibaetas/n
E-20009SanSebastian
6
o
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g
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DearSrCostello
x
t{
First let me apologizefor not having clearedour June statement or replying
to your letter of 10August. However,I am surprisedthat you did not receive
our circular letter informing all our suppliersthat we were moving from
Milan to Turin. I have checkedour post book.and find that a letter was sent
to you on June30.
As you will seefrom the copy enclosed,we warned suppliersthat there
might be some delay in clearing accountsand replying to correspondence
asthe move would involve employing new staff who neededtime to get
usedto our accountsandfiling systems.
Youwill be pleasedto hear that we have now settled into our new offces
and will have a fully trained staff bythe end of next month. Mdanwhile, I
am enclosinga chequefor €2Q000 on account,and will senda full
settlement of your June statement within the next few days.
Couldyou pleasenote our new addressfor future reference?
Yourssincerelv
D. Qi"oril"a"tu*t"o
D.Giordianino (Sig.)
Accountant
Enc.Bank Draft No.427322for€20.000
p
€
I
{t
96
I Whyhadn'tOmega
cl ear edt heir J un e
statement?
2 WhathasSig.
3 Whathasheasked
C i o rd i a n i n o d o n e
S rC ostel l otodoto
aboutthe
letters
ensurethat
outstanding
account,
getto him?
andwhatwill hedo in
the nearfuture?
DeltaComputersLtd
BradfieldEstate
Bradfield
Road
Wellingborough
Northamptonshire
rur84xe
t.:a
Thirdrequcrt
(finaldcmand)
!
!,
3
o
I
Telephone
+44 @\ 99 t64l / zl j /4
Fax+44(o)r933zoor6
EmailmiIlarj@delta.com
www.deltacom
TYGA/C
9 December 20-
6
P.Theopolis SA
5613rd SeptemberStreet
GR-I0432
Athens
tn
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E.
o
DearMr Theopolis
o
*
o
Account No. TYG99014
We wrote to you on two occasions,21Octoberand 14November,concerning
the aboveaccount,which now has an outstanding balance of t3,54I.46 and
is made up of the copyinvoicesenclosed.
We have waited three months for either a reply to explain why the balance
t has not been cleared,or a remittance, but have receivedneither.
We are reluctant to take legal action to recoverthe amount, but you leave us
no alternative. Unlesswe receiveyour remittance within the next ten days,
we wiII instruct our solicitors to start proceedings.
Yourssincerely
, . t ll
J. Mulal
-
J.Millar(Mrs)
ChiefAccountant
Enc.invoice copies
qe6 Engl and r 8l 1713
v ar 24r 9 62u4
Whatisenclosed
with the letter?
How long hasthe
balanceremained
u npaid?
DoDeltaComouters
planto takelegal
action?
4 Whatphrase
isused
w hi chhasa si mi l ar
meaningto takelegal
action?
|o
c
t
0
3
5
97
Points
to remember
c
o
E
a!
4
1 Invoicesare recordsof transactionsaswell
asrequestsfor payment.An invoicemay be
accompaniedby a short coveringletter or
email.
2 Proforma invoicesare usedin the caseof
pre-payment,when they are neededfor
documentation, or to inform the customer
ofthe price.
3 Statementsof account are sent monthly or
quarterly, and include details of all
transactionswithin the period.
6
4 There are various methods of payment
available through banks and the PostOffice.
5 Lettersadvising and acknowledging
payment tend to be short and routine,but
they may be usedto proposenew terms of
payment orto make complaints.
6 If you are asking for more time to pay,you
should apologizefor not having clearedthe
account on the due date,explain why you
have not paid, and when and how you
intend to clearthe balance.Remember,your
creditorsare more interestedin when they
will get their money than in goodexcuses.
7 Threestepsare usually taken by a supplierto
recovera debt. The first is to write a polite
letter which acceptsthat there may be a
good reasonwhy the account has not yet
beencleared.The secondis a more insistent
request which refers to the letter you have
alreadysent,and enclosescopiesofinvoices
and statements.Youcan.in the second
request,statethat you expectpayment or a
reply within a reasonabl.e
time. A final
demandmust be handledwith restraint.
Reviewwhat has happened,explain the
balancehas beenoutstandingfor a long
period,and if necessarythreaten legal action
if the accountis not paid within a specified
period.
98
1 OO
UNJUST IFIE D C OMP LA IN TS
lOO
M AKING GE N E R A L C OMP TA IN TS
1oo
1oo
lor
1o1
Opening
Thelanguage
of complaints
Explainingtheproblem
Suggesting
a solution
101
101
ro l
1o2
1o2
toz
1o2
t x AM p L E s 1 o 3
1o4
1o5
1g)5
1o7
108
t0 9
t1o
1 ' I1
REPT YING TO LE TTE R SOF C OMP LA IN T
Op e n i n g
As k i n g fo rti metoi nvesti gatethecompl ai nt
E x p l a i n i n gthemi stake
S o l v i n g theprobl em
Rejectinga complaint
Closing
C o mp l l i n t about w rong del i very
R e p l yto compl ai ntaboul w rong del i very
C o n rp l a intabout damage
Replyto complarntabout damage
C o mp l a i ntabout badw orkmanshi p
R e p l yto compl ai ntabout badw orkmanshi p
C o n rp l a intabotrtnon-del rvery
Replyto (omplaint a bout wrong delivery
ACCOUNT IN G E R R OR S A N D A D JU S TME N TS
1r1 Debitnotes
111 Creditnotes
r.x AMp L E s 1 1 2
113
114
115
116
D c b l tn o te
Credit note
C o n rp l a intabout l ccountrngerrors
Replyto complaintabout accountingerrors
Pointsto remember
n
o
3
g
g,
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=
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o,
=
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7
U N J U S T IF I ED C OMP T AIN Ts
Beforeyou complain,make absolutelysure
your facts are right.
If you haveto respondto an unjustified
complaint,be polite and rememberthat
anyonecan make a mistake.Belowaretwo
examplesof unjustified complaints,andthe
repliesto them. Noticehow restrainedthe
repliesare
- Dear Sir
I stronglyobjectto the extra chargeof [9.oo
whichyou haveaddedto my statement.
WhenI sentmy chequefor t z56.oo lastweek,
I thought it clearedthis balance.NowIfind ...
- DearMrAxeby
your lettertoday complainingof
Wereceived
an extra chargeof fg.oo on your May
statementI think if you checkthe statement
you willfnd that the amountduewas
f,z65.oonot [,256.oowhich accounts
for the
f9.oo drfference.Ihave
encloseda copyof the
statementand ...
- Dear Sir
I couldnot believeit whenI readthatyour
priceshavenow beenincreasedby f3o.oo.To
haveto pay t55.oofor an articlethat was
f,z5.ooonly afew monthsago is outrageous!
Thegovernmentisfghting inJlation. .
- DearMr Richardson
Thankyoufor your letter.I checkedthe item
you reJerredto,the ScrivaPen,catalogueNo
c14on our price-Iist.Thepriceof the pen has
beenincreasedfromtz5.oo to fjo.oo, not by
f,jo.oo,and Ithinkyouwill agreethatfor a
fountain penthisis not anunreasonable
increaseconsideringthatthe costofour
materialshasdoubledinthe pastfew
months.
MA KIN G GE N E R A TC OMP TA IN TS
When sendinga complaint,you will needto
decidewhether it is appropriateto usefax or
email,where privacycannotbe guaranteed,or
to write a letter.Somecomplaints,e.g.a
mistake in a small payment or in the number
ofgoods despatched,can be faxed or emailed,
but a letter shouldbe usedfor larger or more
seriouscomplaints.
Do not delay.Complainas soonasyou realizea
mistakehas beenmade;delayweakensyour
caseand can complicatethe matter as details
may be forgotten.Thereis no needto openby
apologizingfor the needto complain (We
regrettoinformyou...,1amsorrytohaveto
write to you about . . ) asthis alsoweakensyour
case.Simplybegin:
- Wewould liketo informyou...
- I am writingto complainabout...
- I am writing with referenceto OrderNo.ejz,
which we receivedyesterday.
Emotionalterms like disgusted, inJuriated, or
amazedhaveno placein business.Youcan
expressdissatisfactionby saying:
- Ihis is the third time this mistakehas
occurredand we arefar from satisf.edwith
the serviceyou ofer.
- Unlessyou canfulfiI our orderseficiently in
thefuture we wiII haveto considerchanging
to anothersupplier.
- Pleaseensurethat thissort of problemdoes
not ariseagain.
Do not be rude or personal.In most cases
between companiestakes
correspondence
placebetweenemployeesin various
departments.Nothing is gainedby being rude
to the individual you are writing to You may
antagonizesomeonewho has probablyhad
nothing to do with the error and,rather than
getting it corrected,he or shecouldbecome
defensiveand diftcult to deal with. Therefore,
do not usesentenceslike:
- Youmust correctyour mistakeassoonas
possible.
- Youmadean erroronthe statement.
- Youdon't understandthetermsof discount.
Wetoldyou to deductdiscountfrom net
prices,not ctt prices.
Usethe passiveand impersonalstructures
mentioned earlier seepage87.
- Themistakemust becorrectedassoonas
possible.
- Thereappearsto bean erroron the statement.
- Thereseemsto besomerhisunderstanding
regardingtermsof discount.Discountis
deductedfromnetprices,not ctr prices.
Do not usewords like/ault $tourfault,our
fault) or blame$rouaretoblame)-these
expressionsarerude and childish.Do not write:
- It is not ourfault It isprobablythefault of
your despatchdepartment.
Instead,write:
- Themistakecouldnot haveoriginatedhere,
and mustbeconnected
with the despatch
of
the goods.
Never blame your own staff, and flnally, while
writing the complaint rememberthat your
supplierwill almost certainlywant to help you
and correctthe mistake.Suppliersarenot in
businessto irritate or confusetheir customers
but to offerthem a service.
If youthink you knowhowthe mistakewas
made,you may politely point this out to your
supplier.Sometimes,when a mistakeoccurs
severaltimes,you may be abieto work out why
it is happeningmorequicklythan the
companyyou aredealingwith.
- Couldyou teIIyour despatchdepartmentto
take specialcarewhen addressing
consignments?
My nameand address
are
C.I. Schwartz,
Bergstr.rct Koln.But thereis a
C.Schwartz,
Bergstruo Koln who alsodealsin
electricalfttings.
- Couldyou askyour accountsdepartmentto
checkmy codecarefullyinfuture?My
accountnumberis246-642,but they have
beensendingme statementscoded642-246.
- I think the reasonthat wrongsizeshavebeen
sentto me is because
I am orderingin metric
sizes,
andyouaresendingmesizesmeasured
inJeetand inchesI would appreciateyour
Iookinainto this.
a1
o
If you think you know how the mistake can be
corrected,let your supplierknow
- If I sendyou a debit notefor €984.oo and
deductitfrom my next statement,that
shouldput the matter right.Thebestsolution
would beJor me to return the wrong articles,
chargingyou P&P.
- Ratherthan senda creditnoteyou couldsend
six replacements,
which wouldprobablybe
easierthan adjustingour accounts.
3
E.
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7
R E P TY IN GTO TE TTE R S
OF C OMP TA IN T
Acknowledgethat you havereceivedthe
complaint,and thank your customerfor
i n fn vm i n a
rrnrr
- ThankyouJoryour letterof 6 August
informingusthat ..
- Wewould liketo thank youfor informing us
of our accountingerrorin your letterof7 lune.
- Weare replyingto your letterof rc March in
whichvou told usthat ...
Sometimesyou cannot dealwith a complaint
immediately,asthe matter needsto be looked
into Do not leaveyour customerwaiting but
tell them what you are doing straight away.In
this case,an email or fax messageis
appropriateasthe customerthen knows
immediately that you havereceivedthe
complaint and are doing somethingabout it.
- Whilewe cannotgiveyou an explanationat
present,we are lookinginto theproblem and
will contactyou again shortly.
- As we aresendingout orderspromptly,I think
thesedelaysmay beoccurringduring transit.
I shallget in touchwith the haulage
contractors.
- Wouldyou pleasereturn samplesof the items
you aredissatisfiedwith, and I will sendthem
to ourfactory in Dfisseldorffortests.
tr
!,
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7
If the complaint is justifled,explain how the
mistakeoccurredbut do not blame your stafi.
Youemployedthem, soyou areresponsiblefor
their actions.
- Themistakewasdue to afault in one of our
machines,which has now beencorrected.
- Thereappearsto havebeensomeconfusionin
our addressingsystem,but this hasbeen
sortedout.
- It is unusualfor this type oJerrorto arise,but
the oroblemhas now beendealt with
Having acknowledgedyour responsibilityand
explainedwhat went wrong, you shouldput
mattersright as soonaspossible,and tell your
customerthat you are doing so.
- Wehavenow checkedour accountsandfnd
that we havebeensendingyou the wrong
statementdueto a confusionin namesand
addresses.The
databasehasbeenadjusted
and thereshouldbeno moredificulties
Pleasecontactus again if a similar situation
arises,
and thankyou againforpointingout
the error.
- Thepaintwork on the bodyof the carsbecame
discoloured
because
of a chemicalimbalance
in thepaint usedin sprayingthe vehicles.We
havealreadycontactedour own suppliersand
are waitingJor their reply.Meanwhilewe are
taking thesemodelsout of productionand
calling in all thosethat havebeensupplied.
- Thefabricyou complainedabout hasnow
beenwithdrawn.Thefault wasin the weaveoJ
the cloth,whichwas
dueto a programming
errorinthe weavingmachines.This
hasnow
beencorrectedand replacementfabricwill be
sentto you.
if you think the complaint is unjustified,you
can be f,rm but polite ln your answer.But even
if you deny responsibility,you shouldalways
try to give an explanationof the problem.
- Wehavecloselycomparedthe articlesyou
returnedwith our samplesand canseeno
differencebetweenthem Therefore,in this
casewe are not willing eitherto substitutethe
articlesor to ofer a credit.
- Ourfactory hasnow inspectedthe unit you
returnedlast week,and they inform us that
the circuitswereoverloadedWecan repair
the machine,but it wiII be necessary
to charge
you as incorrectuseofthe unit is not covered
by our guarantee.
It is usefulwhen closingyour letter to mention
that the mistake,error,or fault is an exception,
and it either rarely or neverhappens.You
should also,of course,apologizefor the
inconvenienceyour customerexperienced.
- In closingwe would liketo apologize
for the
inconvenience,
and alsopoint out that this
type offault rarelyoccursin the Omegazooo.
- Finally,may wesaythat this wasan
exceptionalmistakeand is unlikelyto occur
again.Pleaseacceptour apologies
Jor the
tnconvenlence.
- Replacements
for thefaulty articlesare on
their way to you, andyou shouldreceivethem
tomorrow.Wearesurethat you will be
satisfiedwith them and there will be no
repetitionof thefaults. Thankyou for your
patienceinthis matter,and welookforward
to hearingfromyou again.
Complaintabout
wrongdelivery
al
!
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3
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Dear Richard
I receiveda consignmentof dressingtables,Cat. No. DT154,to the aboveorderyesterday.
Howeve6the deliveryconsistedof six heavymahogany-finished
dressingtablesinsteadof
the lightpine-finishedunits I askedfor.
As I havefirm ordersfor the design I askedfo[ | would be gratefulif you could send my
consignmentas soon as possible,and collectthe wronglydeliveredgoods.Thankyou in
advance.
Thereplyto thisemail
=
message
>pagero4,will 5DI
explainwhycomplaints 54
l,
shouldbecarefully
tr
writtenandMr Hughes -*
6
shouldnotassume
that
3
o
Mr Cliffisresponsible
for
=
6
the mistake.The
companies
concerned
herehavedealtregularly
with oneanother,
soan
emai message
l
i squit e
appropriate,
asthisis
tn
not particularly
xll
confidential.
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t o3
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rryf toonflaht
rDoutml6
dchtrt
Noticethe contractions
l'll andthere\,andthe
informalstylein this
However,it is
message.
still politeandefhcient
in tone.Inthis caseit is
importantthatthe
of
mistake,regardless
whosefault it is,is
correctedassoonas
possible.
Andnoticethat
the invoice- an
in
importantdocument
thistransaction
- issent
with the next delivery
issent
andthe catalogue
by separatepost,neither
ofthem asattachments
totheemail message.
RobertHughes
Re:Wrongdelivery(orderNo.1695)
DearRobert
Thankyoufor yesterday's
emailconcerningtheabovewrongdelivery.
I havelookedintoit andfindthatourcurrentwintercatalogueliststhe dressingtablesyou
catalogue.
wantedunderDT189.I thinkyoumusthaveusedlastsummer's
I haveinstructedoneof ourdriversto deliverthe pine-finished
dressingtablestomorrowand
pickuptheotherconsignment.
Ratherthansendingyoua creditnote,l'llcancelinvoiceNo.D4451andincludeanothe[
No.D4487,withthe delivery.
There'salsoa wintercatalogueon itswayto you,by post,in caseyouhavemislaidthe current
one.
RichardCliff
t:
WhydidMr Hughes
receivea wrong
delivery?
WhatwillMrClifido
aboutit?
t04
t WhyisMrCliffnot
goingto senda credit
note?
t Whi chw ordsi nthe
emailhavea similar
meaningtothe
following?
I HowwillMrCliffhelp
r investigated
Mr Hughesnot to
b told
makethe same
collect
c
mistake
again?
d lost
Complaintabout
d a ma g e
Head Offire
F. Lynch & Eo. Ltd
N essonH ouse
N ew el i S treet
B ttnrtngl rsry1
B J JE I.
Tel ephone:+44 (rol zt'zt6 657l
Faxt+44(o)2r23685t12
E mai l :pcrane@l ynchco.uk
w w w l ynch com
Youhavealreadyseena
complaint
about
breakages
in
MacK enzi e'
s l to
emai
ClastonPotteries
letteralso
' page85.This
dealswith damage.
n
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your ref:
Ourref: OrderNo.L4478
Date: 15August 20-
7
SatexS.p.A.
Via di PietraPapa
00146Roma
ITAIY
3
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Attn. Sig.Daniele Causio
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Dear Sig.Causio
Our OrderNo.14478
I am writing to you to complain about the shipment of sweaterswe
receivedyesterday against the aboveorder.
Theboxesin which the sweaterswere packedwere damaged,and lookedas
if they had beenbrokenopen in transit. Fromyour invoiceNo.18871
we
estimatethat thirty garmentshavebeenstolen,to the value of f 550.00.
Becauseof the rummaging in the boxes,quite a few other garments were
crushedor stainedand cannot be soldas new articlesin our shops.
As the salewas on a CIFbasis and the forwarding companywere your
agents,we suggestyou contactthem with regardto compensation.
Youwill find a list of the damagedand missing articlesenclosed,and the
consignmentwiII be put to one sideuntilwe receiveyour instructions.
Yourssincerely
Peter A'a*w
PeterCrane
ChiefBuyer
Encl.
Ho w d i dthedam age
occur?
Whycan'tmanyof
the garments
be
sold?
Why doesMr Crane
suggestthat Mr
Causiohasto deal
with comoensation?
What is enclosed
with the letter?
What doesMrCrane
intendto do with the
damaged
consignment?
Whichwordsin the
letterhavea similar
to the
meaning
following?
a duri ng
transportation
b assess
c getintouchwith
,O
o
105
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E
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Replyto <omplaint
about damage
BecauseSatexsells
goodsto their retailers
on a crF b asis,a ndin this
casethere was no
specialinstructionto
sendthe goodsin a
particularway,they will
haveto find out what
happenedand whether
they can get
compensation.
Sig.Causiocouldhave
askedMrCraneto keep
t he u nd ama ge d
garmentsand return
those which could not
be sold.However,he
wantsthe ship pin g
companytoinspectthe
whole consignmentin
casethey do not accept
that the damagewas
causedbythieves.
S a te x
S.p .A.
Vla d l i rretr,lFapa,oor4o l trrrn.r
Tei ei ono:+39 (o)6 7ti 99to
Telefax: +39 (o)5 68r5473
Er'rral | : c eusiod @satc;r.co.it
t s.rif.:
Order14478
r
,'r rl " Ns.rif.:D/1162
24August 20Mr L.Crane
ChiefBuyer
F.Lynch & Co.Ltd
NessonHouse
Newell Street
Birmingham833Et
UNITEDKINGDOM
Dear Mr Crane
Thank you for informing us about the damageto our consignment (Inv.No.
18871).
From our previous transactions you will realizethat this sort of problem is
quite unusual. Nevertheless,we are sorry about the inconvenienceit has
causedyou.
Pleasewould you retum the whole consignmentto us,postageand packing
forward, and we will askthe shipping company to inspect the damage so
that they can arrange compensation.It is unlikelythat our insurance
companyneedsto be troubled with this case.
If youwant us to sendyou another shipment asperyour orderNo.14478,
pleaselet us know. We have the garments in stock and it would be no
trouble to sendthem within the next fortnight.
I
Yourssincerely
i ' ,' i l al ' .r,
r .i . I r tr'
DanieleCausio
SalesDirector
ro5
5uperbuysLtd
S u p e r b uH
y ouse
WolvertonRoad
London
s w 1 67 D N
Telephone
+44(o)zo8327rti5r
Farumrle
+44(o)zo8327r935
perbuys.com
Emai I k bellon@su
www.superDuys
com
Date. TthJuly 20-
Mr P.Lane
Wembley Shopfitters ltd
WycombeRoad
Wembley
MiddlesexHA9 6DA
Complelntabout
badworkmanrhlp
Whenbadworkmanship
isinvolved
the customer
canonl ycompl aias
n th e
faultsarise,
butthey
shoul dsti l lcomol aias
n
soonaspossible.
In
earliercorrespondence
)Pages4-z4and59,
5uperbuys,
a
supermarket
chain,
asked
Wembley
Shoofitters
to refitone
of theirshops.The
work
wascompleted,
but
somemonthslater
faultsbeganto appear.
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DearMrLane
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'Superbuys',443 Halton Road,London SE43TN
o
I am writing to you with referenceto the abovepremiseswhich you refltted
Iast February.
In the past few weeks a number of faults have appearedin the electrical
circuits and the flooring which have been particularly dangerousto our
customers.
With regard to the electrical faults, we have found that spotlights have
either failed to work, or flicker while they are on, and replacing the bulbs
has not correctedthe fault.
The flooring which you laid shows signs of deterioration, and some areas
are worn through to the concrete,creating a hazard to our customers.
I would be grateful if you could come and inspect the damage and arrange
for repairs within the next week. The matter is urgent as we can be suedif
any of our customers are injured. I would also take this opportunity to
remind you that you have guaranteed all your f.xtures and fittings for one
year.
I look forward to hearing from you soon.
Yourssincerely
Kelth, Be.llon,
Keith Bellon
Managing Director
Reg No 94fl6
vrr
Loildon
No 516 84ro 3o
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10July 20-
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Mr Keith Bellon
SuperbuysLtd
SuperbuyHouse
WolvertonRoad
LondonSW167DN
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DearMr Bellon
'Superbuys',443
Halton Road,LondonSE43TN
The damageyou describedin your letter of 7 July has now beeninspectec.
Thefaults in the wiring appearto havebeencausedby dripping water from
the floor above.The electricalcontractor,who put the wiring in in February,
tells me that the wall was dry at the time he replacedthe old wires.
However,wewill arrangefor repairsto be made and sealoff that section,
Duraflooris one of the most hardwearingmaterialsof its kind onthe
market and we were surprised to hear that it had worn away within six
months,sowe made a closeinspection.We noticedthat the floor had been
cut into and this seemsto havebeenthe result of draggingheavymetal
boxesacrossit. The one-yearguaranteewe offer on our workmanship is
against'normal wear and tear',and the treatment the floor appearsto have
beensubjectedtodoesnot comeinto this category.I am quite willing to
arrangefor the suffaceto be replaced,but we will haveto chargeyou for the
materialsand work involved.If I may,I would like to suggestthat you
instruct your staff to usetrolleyswhen shifting heavy containers.
I am sorry about the inconvenienceyou have experiencedand will tell the
fltters to repair the damage as soon as I have your conflrmation that they
canbeginwork.
Thefloor repairsshouldnot cometo more than f 890 andthe work can be
completedin lessthan a day.Perhapsyou couldring me to arrangefor a
convenienttime for the work to be carriedout?
Yourssincerely
'
i ,.,t,
PeterLane
Director
WhatdoesMr Lane
th inkc aus ed
t he
faultywiring,and
whatdoesheintend
to doaboutit?
ro 8
What doeshe think
causedthe problem
with the flooring,and
what doeshe sayhe
willdo about it ?
HowdoesMr Lane
suggest
thedamage
to thefloorcan be
avoided?
H owl ongw i l lthe
repairs
to thefloor
take?
Whichwordsin the
letterhavea similar
meani ng
to the
following?
lookedat
durabl e
everyday
use
movrng
Complaint
about
non-dclivery
LeverFgtai e
S rar bc.o L,B h
Y orkch're
y.11
JB '
UTHIGTES
PtG
Tel t"phorrea 44 (o)17: j 16c l
Fax +44 (o)r7238r953
- ;,
E mai l :m.bl ackbsl yl (afs1l i .:.;,
Date:20June20HerrR.Zeitman
E.F.BadenAG
ZiilpicherStr.10-20
D-40000Diisseldorf11
DearHerr Zeitman
Inthi scasethe
customer,
Forham
Vehicles.
makeslorries
placed
for export.They
anorderwithE.F.
Baden
to suppl ythem
w i th
sixtydynamosfor a
shipment
of lorriestobe
exported
to Greece.
Badenhaveneither
delivered
theordernor
replied
to Forham's
previous
letterurging
themto makedelivery,
soForham
senda strong
complaint.
at
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OrderNo.VC58391
o
We are writing to you with referenceto the aboveorder and our letter of
22May in which we askedwhen we could expect delivery of the 60
dynamos (Artex model 55)you agreedto supply on 3 Junefor an export
order.We have tried to contact you by phone,fax, and email but no-one in
your organization seemedto know anything about this matter.
It is essentialthat we deliverthis consignmentto our Greekcustomerson
time asthis was an initial order from them and would give us an opening in
the Greekmarket.Our deadlineis 28June,andthe lorrieshavebeen
completed exceptfor the dynamos that need to be fitted.
Unlesswe receivethe componentswithin the next flve days,our customers
will cancelthe order and place it elsewhere.We would like to make it clear
that we are holding you to your delivery contract, and if any lossresults
becauseof this late delivery we will take legal action.
Yourssincerely
,u it iu,e/.,B/a,.C
i :.t;'r,,
Michael Blackburn
Director
R es F ngl .r nd 8q69r l 5
v b\ 462j 2117
t og
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Replyto
complaintabout
non-delivery
Notehowthis letteris
butfirm.
apologetic
ThoughE.F.
Baden
bilityfor
acceptresponsi
Forham
the problems
Vehicles
facein
delivering
their
to their
consignment
Herr
Greekcustomers,
Zeitmanrejectsthe
th reatof legaI actionby
drawingMr Blackburn's
to a clause
in
attention
stating
theircontract
will
thatthecompany
notberesponsiblefor
unforeseen
circumstonces.However,
HerrZeitmanisflexible
he
enoughto realize
his
mustnotantagonize
soheallows
customer,
Mr Blackburn
the
opportunity
to cancel
theorderif hecanmake
otherarrangements.
Thisletterillustrates
two mainpoints:fi rst,do
notcommityourselfto
youare
contracts
unless
certainthey
absolutely
second,
canbefulfilled;
try andbeas
always
with
flexibleaspossible
or associates
customers
evenif youarein a
- it will
strongposition
improveyour
business
reputation.
Zi l l pi cher5tr. rc-2o, D -4,oooo
D i .i l sel dorfl l
Tel+49 rrr j 8 34 06/09
Fax r4c1zr 18 14z7'r
[:rrrrr!i zertman@baden.co
de
29June20MrM.Blackburn
ForhamVehiclesplc
LeverEstate
ScarboroughYOll3BS
DearMr Blackburn
Thankyou for your letter of 20 Juneconcerningyour order(No.VC58391),
which should have been supplied to you on 3 June.
First,Iet me apologizefor your order not being deliveredon the due date and
for the problems you have experiencedin getting in touch with us.Both are
the result of an industrial dispute which has involved our administrative
staff and employeeson the shop floor, and has held up all production over
the pastfewweeks.
The dispute has now been settled and we are back to normal production.
Thereis a backlogof ordersto fill, but we areusing associatecompaniesto
help us fulfil all outstanding commitments. Your order has been given
priority, so we should be able to deliver the dynamos before the end of this
week.
May I point out, with respect,that your contract with us has a standard
clausestating that delivery dateswould be met unless unforeseen
circumstancesarose,and we think you will agreethat an industrial dispute
is an exceptional circumstance.However,we understand your problem and
will allow you to cancelyour contract if it wiII help you to meet your
commitmentsto your Greekcustomers.But we wiII not accept
responsibility for any action they may take against you.
Onceagain let me say how much I regret the inconveniencethis delay has
caused,and emphasizethat it was due to factors we could not have known
about when we acceptedyour delivery dates.
Pleaselet me know if you wish us to complete your order or whether you
would prefer to make other arrangements.
I look forward to hearing from you.
Yourssincerelv
t/-
K0T -/-txJ.U4r'j.Y,
RolfZeitman
Managing Director
t10
A CCO U N T IN GE R R O R SAN D
A DJ US T M EN T S
Many lettersof complaint ariseout of
accountingerrors,which canbe correctedby
adjustments Debit notesand credit notesare
usedfor this purpose
D eb itnotes
Dnr r r u o rrs a rea s e c o n d c h a rg e fo r a
consignmentand becomenecessary
if a
customerhasbeenunderchargedthrough a
mistakein the calculationson the original
invoice.An explanationfor the chargemust
be includedon the debit note:
- Underchargeon invoicecz93.to Units
@ftz.6zeach= f,tz6.zo,Nor f.16.20
- InvoiceNo.p.32,one line omittedviz. toomn
Zip Disks@f8.4o each= f84o.oo
- var shouldhavebeencalculatedat ry.5%,
wor ry% Difference= f8t.86
Oncea buyer has settledan account,it is
annoyingto be told that there is an additional
payment An apologyshouldalways
accompanya debit note.
- Wewould liketo apologize
for the mistakeon
invoiceNo.czgj,whichwasdueto an
oversight.Pleasecouldyou sendusthe
balanceof €795.oo?
- I am sorryto troubleyou,particularlysince
youwere soprompt in settlingthe account,
but I would begrateful if you would let us
havethe additionalamount of €34o.ooas
itemizedonthe enclosed
debitnote.
- I regretthat we miscalculatedthe var and
must now askyou toforward the difference
of f 5t.86.
Creditnotes
Cnr prr NorE s aresentbecauseof accidental
overcharges:
- to copieso/lnternational Commerce@
ft6.5o = ft65.oo Nor 8ry5oo
- Invoicet283.Discountshouldhavebeenn%,
not 8%.Credit= Y5,140oo.
A creditnote may alsobe issuedwhen a
depositis refunded(e.g on the cartonsor cases
which the goodswere packedin) or when
goodsarereturnedbecausethey were not
suitableor were damaged.
- Received
3 returnedcaseschargedon Invoice
No.t4j6 @E7.ooeach= tzt.oo.
- Refundfor4 copiesoflnternational
Commercef,t6.5oeach(returneddamaged)=
t66.oo
As with a debit note,inthe caseof mistakes
a coveringletter ofexplanation and apology
shouldbe sentwith a credit note.
- I havepleasurein enclosinga creditnotefor
€z4o.oo Thisis dueto a miscalculationon
our invoicedatedtz August.Pleaseacceptour
apologiesfor the error.
- Pleasefindenclosedour creditnote No.c4for
€t65.6owhich is a refundfor the overcharge
on invoiceNo.tz8j. Asyou pointed out in
your letter,the tradediscountshouldhave
beenp%, not rc%,of the grossprice.We
apolog izefor the inconvenience.
a rl
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Ihblt note
E
Thisnoteis necessary
because
the suppliers,
Furniture,have
Seymore
madea mistakeintheir
andhave
calculations
undercharged
their
customer,
C.R.
M6ndez.
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Furniture
Ltd
DebitNete
NO.311
Telephone:
+44 (o)r62826755
Fax:+44(o)t62826756
Email:accounts@seymore.co.uk
Registered
No.t85t439rLondon
vAr No.231
61883r
TibStreet
Maidenhead
Berkshire
s 165oz
UK
3lMay 20C.R.M6ndez S.A.
Avda del Ej6rcito 83
E-48015Bilbao
o
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5May2G-
Invoice No. L 8992.UNDERCH.A,RGE.
The extension should have read:
6 Chairs@f 35.00each= f210.00
NOT
6 Chairs@f,25.00each= f150.00
We apologizefor the error and ask if you
wouldplease paythe difference of f,50.00.
f50.00
Creditnote
NO. C517
Telephone:
+44 (o)r62826755
Fax:+44@)t62826756
Email:accounts@seymore.co.uk
Registered
No.r85r439r
London
ver No.z3r61883r
TibStreet
Maidenhead
Berkshi
re
s L 65 D 2
UK
Seymore
Furniture
havemadea mistake
on anotherinvoice
and
mustnowsenda credit
note.Notethat the form
for a creditnoteisthe
sameasthat for a debit
note,exceptfor the
heading.
Creditnotes,
however,are
often
printedin red.
6
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Avda del Ejercito 83
7
m
xc,
E-48015Bilbao
g3
10May 20-
o
Invoice No.t899 5.OVERCHARGE.
6
o
a
The invoice should have read:
L5Y"off grossprice of f800.00 = f120.00
NOT
10%offgross price off800.00 = f80.00
Refund= f 40.00.PleaseacceDtour
apologies.
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r 13
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Complelntrbout
eccountlngc?nort
(abuilders'
M. Lancelot
a
supplier)hasreceived
statementwhich
containsseveral
errors.
accounting
SARL
IrI. LAD|GELOT
& lrFt.l
tol n,. xllrlr|.
rt.oooffoatpelhr
lahpl'roo.
.y3)4843to3t
fdccopie
. ]] r ful toll
Imerl
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o
():iEl.t'\(clOl
(O tt
tJ
5August20f
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MrK.Winford
K.Winford & Co.Ltd
PrestonNewRoad
Blackpool
LancashireFY44UL
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DearMrWinford
I have receivedyour July statement for f 3,280.54but notice it contains a
number of errors.
I
Invoice Y1l46for t256.O0has been debited twice.
which I
2 No credit has been listed for the wallpaper (Cat.No.\MR114)
refers
f19.00
to this.
Your
note
No.
CN118
for
retumed in JuIy.
credit
3 Youhave chargedfor a delivery of paintbrushes,invoice No.Y1162for
f52.00, but I neither orderednor receivedthem. Could you checkyour
deliverybook?
Ihave deductedatotal of f337.00fromyour statement andwil iendyoua
draftfor t2,943.64once I have your confirmation of this amount.
Yours sincerely
Ma*u'ire Lanrt/ot
MauriceLancelot
Director
il4
Telephone
+44 @)tz53 6t 2go/ ' t / 2
Fax
+44@112536978
Email
wink@winford.co.uk
K.tTinlold
&Go.Hd
Replytocomplaint
aboutaccounting
errors
n
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B l ackpool
Lancashi re
FY 44U L
s
t
7 August 20tn
M. Maurice Lancelot
Director
M. LancelotSARI
703rue Metairie de Saysset
F-34000Montpellier
x0,
3
E.
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Dear M. Lancelot
Thank you for your letter of 5 August in which you pointed out that three
mistakes totalling f 337.00had been made on your statement.
I apologizefor the errors.Thesewere due to a software fault which has now
been fixed. I have enclosedanother statement for July,which showsthe
correctbalanceof.L2,943.64.
Yourssincerely
rc.wtnforoL
K.Winford
Enc.Statement
R eg N o 3i l 62531
vAr No 83r4ooj 36
rt5
Pointsto remember
5
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1 Minor complaints can be faxed or emailed,
but use letters when dealing with more
senousones.
2 Beforewriting a letter of complaint, make
sure you have got your facts right.
o
5
E
3 Complaints are not accusations,they are
requeststo correct mistakes or faults, They
should be written remembering that the
supplier almost certainly wants to put
things right.
T
4 Never make the complaint personal (e.g.
your mistake,your fault,you are to blame).
Usean impersonaltone (e.g.themistake,it
must have happenedbecause...,the enor).
E
g
B
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5 Whenansweringacomplaint,thankyour
customer for pointing out the problem. If the
complaint is justified, explain how the
problem occurredand how you intend to
dealwithit.
6 If you need more time to investigate the
complaint, tell your customer.
7 If the complaint is unjustified, politely
explain why, but sympathize about the
inconvenienceit has caused.
n6
.
118
FO RM SO F C R E D I T
118
REqUt REM E N T SF O RG R A N T I N GC R E D T T
118
ASKI NG FoR c R E D I T
118
O pening
rr8 Convincingyoursupplier
119 Closing
tx Amp rts
txA$PtEs
119
REPTYTNG
T O R E q U E S T SF O RC R E D T T
119
119
12o
12o
121
122
123
124
125
125
tz 6
rz6
tz6
tz6
tz6
127
127
127
tz8
129
t3o
r31
132
r33
134
r35
Agreeingto credit
Refusingcredit
Negotiating
Replywhile waitingfor references
R e q u e s tforopenac(ountfaci l i ti es
ReplyIrantinB op€n accounlfacilitier
Requertfor generalcedit facilitles
Refusalof <reditfacilitier
lequ?rt for a changein thc termr of payment
Notillcationof taling up referencct
As KrN cA Bour cR E D trR A TIN G
Opening
Details
Closing
Usingan enquiryagency
R Ep L y tN TO
G E N qU tR tE A
S B OU TC R E D TT
R A TTN G
Refusingto reply
Replyingunfavourably
Replyingfavourably
lelter to a refereeI
Referee'rreplyI
Lette?to a referee2
Referee'rrcgly 2
Negalivereplierto enquiriesabout crcdit rating
L e tte rto a n enqui ryrgenl
[nquiry agent'sreply
Pointstoremember
86
n
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8
F O R M S OF C R ED IT
Creditarrangementsbetweentrading
companiestake two forms:
-B Itts o F E x c H A N GE ,o TB A NDKR A rrs,
by which the suppliergivescreditto the
customerfor the period specifled,e.g.thirty,
sixty, or ninety days.
- O p n NAc c o u N r rAc rL r rrEs,byw hi chthe
customeris allowedto pay for goodsagainst
monthly or quarterlystatements.
In orderto control a transaction,a supplier
may sendaqualityand deliveryJaxtothe
customershortly after despatchof the goods,
statingthat they were despatchedon the date
of the invoice;that they met the quality
conditionsofthe contract;that the supplier
would like to be informed if the goodsarrived
intact or were damagedon delivery;and that
the supplierlooksforward to prompt payment
on the due date.
As a rule,all areasof credit dealingshouldbe
consideredconfidential,so open
correspondence
like email and fax shouldbe
used carefully.
R E q U T R EME N T SF OR C R A N TTN G
C R ED IT
Cnr prr FAcrlrrrEs will only be grantedby a
supplierif the customercan satisfyone or
more of thesethree requirements:
1 Reputation- Creditmay be givento flrms
which have an establishedreputation,i.e.
arewellknown nationhlly or
internationally.
2 Long-termtradl.ngassociation- If a
customerhas beentrading with a supplier
overa period of time and has built up a good
relationshipby,for example,settling
accountspromptly,they may be ableto
persuadethe supplierto grant credit
facilitieson this basisalone.
3 RnrEnnNcns - Normally,when askingfor
credit,a customerwill supplyreferences,
i.e.
the namesof concernsor companieswhich
will satisfythe supplierthat the customeris
reputableand cnrprrwonrHv. Bankswill
rr8
supplyreferences,
though thesetend to be
briel statingthe company'scapitaland who
i ts di rectors
are.Tnapnassocrerrous,i. e.
organizationswhich representthe
company'strade or profession,alsogivebrief
referencestelling the enquirerhow long the
companyhasbeentrading and whether it is
Iargeor small.References
can alsobe
obtainedfrom, e.g.the customer'sbusiness
associatesand the commercialdepartments
of embassies.
A S K IN G FOR C R E D II
tr
ir
When askingfor credit facilities,it is bestto go
straightto the point and specifywhat form of
credit you arelooking for.
- I am writing to ask if it would bepossiblefor
us to havecreditfacilitiesin theform of
payment by 6o-daybill of exchange.
- Thankyoufor your catalogueand letter.As
therewasno indicationof your creditterms,
couldyouletme knowif youwould allowus
to settleon monthly statements?
- Weappreciateyour prompt answerto our
enquiry.As I pointed out in my letter,our
suppliersusuallyallow us openaccount
and I
facilities with quarterlysettlements,
hopethis methodof payment will be
acceptableto you.
As mentioned above,your supplierwill only
grant credit if they are convincedthat you will
not pn rrulr, so mention your previous
dealingswiththem.
- As we havebeendealingwithyoufor more
than a year,weJeeIthat you know us well
enoughtogrant our request.
- Webelievewe haveestablishedour reliability
with you overthepast six monthsand would
now liketo settleaccountson a quarterly
basis.
- During thepastfew monthswe havealways
settledpromptly,and thereforewefeel we can
askfor bettercreditfacilitie sfrom y ou.
Mention your reputation,and offer references.
companyand can
- Weare awell-established
offer references,if necessary.
- Wecan certainlypay on the due dates,but if
you would likeconfirmationconcerningour
pleasecontactany ofthe
creditworthiness,
...
following who wiII act asour referees:
- Wedealwith mostof our supplierson a
quarterlysettlementbasisandyou may
contactany of thoselistedbelowfora
reference.
- Wehopefor afavourabledecisionandlook
forwardtoyour reply.
- Wehopeyouwillfollow upthe references
we havesubmitted.Welookforward to your
confrmation that payment by 3o-daybill of
exchange is acceptable.
- As soonaswe receiveyour confirmationthat
youwill allow the openaccountfacilitieswe
haveaskedfor,wewillsendour nextorder.
R E PL Y IN GT O R E O -U E5 TF
SOR C R E D IT
t-
Ifthe supplierdoesnot think it necessary
to take up references,
they may grant credit
immediately.
- As we havebeentradingfor overa year,
wiII not be necessary.
references
Youmay
clearyour accountsby jo-day biII of
exchange,which wiII besentto Burnley's
Bank (QueensBuilding,CathaysPark,Cardifr
cn 9w) with shippingdocumentsfor your
acceptance.
- Wearepleasedto informyou that the credit
and as
facilitiesyou askedforareacceptable,
we know the reputationof your company
therewill be no needJorus to contactany
referees.
I wouldjust like to confi.rmthat we
agreedsettlementwiII bemadeagainst
monthly statementsWelookforward to
receivingyour next order.
If referencesare considerednecessary
however,the supplierwill acknowledgethe
request seepager2oandthenreplyinfull
when referenceshavebeenreceived.
- Wehavenow receivedthenecessary
references
and arepleasedto inform you that,
from your next order,payment can be made
on a quarterlybasisagainststatements.
- Thereferees
you gaveus haverepliedand we
are ableto teIIyou that asfrom next month
youmay settleyour accounton a documents
againstacceptance
basisby 6o o/s s/t
When refusing creditfacilities,the writer
must explain why the requesthasbeenturned
down.Theremay be variousreasonsfor this. It
might be uneconomicaltooffer credit
facilities;you may not trust the customer,i.e.
the customerhas a bad reputation for settling
accounts;or it might simply be companypolicy
not to give credit.Whateverthe reason,the
reply must be worded carefully so as not to
offendthe customer.
- Thankyoufor your letterof 9 Novemberin
whichyou askedto beput on openaccount
t erms.Unfortunately,we never allow credit
facilities to customersuntilthey havetraded
with usfor overa year.Wearevery sorrythat
we cannotbe morehelpful at present.
- Weregretthat we are unableto offeropen
accounttermsto customersasour products
arecompetitivelypriced,and with small
prof.t marginsit is uneconomicalto allow
creditfacilities.
- Wearesorrythat we cannotoffercredit
facilities of any kind at presentowing to
inflation.However,if the situation improves
we may beableto reconsider
your request.
- Wehaveconsidered
your requestfor
quarterlysettlements,butfeel that with our
competitivepricing p olicy,which Ieaves only
smaIIp roft margins,it would be
uneconomicalto allow crediton your present
purchases.However,if
you can offerthe usual
references
and increaseyour purchasesby at
Ieast5o%,we would be willing to reconsider
the situation.
!
I
8
119
T'
o
N e g o ti a ti n g
tr,
8
Sometimesa supplier will not offer as much
credit asthe customerwants,but will
negotiatea compromise.
- I regret that we cannot ofreryou creditfor as
Iongas threemonths,sincethiswould be
uneconomicalfor us.However,we are
preparedto offeryou settlementagatnst
monthly statements.Perhapsyou would let .
me know if this is acceptable?
- Thoughwe do not usually offer credit
facilities, we would beprepared to consider
partial credit.In this caseyou wouldpay haIJ
your invoiceson a cashbasis,andthe restby
If thisarrangement
3o-daybiII of exchange.
suitsyou, pleasecontact us.
R e p l y w h i l e w a i ti n g fo r referencel
In somecasesyou will not be ableto grant
credit without making further investigations.
In particular, you may want to take up the
referencesyour customerhas offered.Inthese
cases,your reply will be little more than an
acknowledgement of the request.
- Thankyoufor your letter inwhichyou asked
for creditfacilities.At presentweare writing
you mentionedand wiII letyou
to the referees
know assoonas we hearfromthem.
- In reply to your email of 8 lune, we wiII
consideryour requestto pay by 3o-daybiII of
exchangeand wiII contad youby letter as
soonas we havereacheda decision.
- With referenceto your letter of ry March, in
whichy ou askedfor open accountfacilitie s,
I wiII contactyou assoonas the usual
enquirieshavebeenmade.
- As we haveonly just receivedyour letter
askingf or creditfacilit ies,would y ou allow us
a little time to considerthe matter?I wiII be in
touch with you again within the next couple
of weeks.
I[. [tu;;hrs
& Sortl,ful
.rrMced Road,Swrnrca
Wert Glamorgen
Str rDr
lelephone:
+44(o)r7925844r
Fcx:Swansear 44 (0)179
2 59472
r.hughes@huson
Ernorl:
co.uk
18July 20MrR.Cliff
HomemakersLtd
54-59Riverside
Cardiff CFlUW
DearRichard
I have enclosedan order,No. B 1662,for sevenmore 'Sleepcomfy'bedswhich
have proved to be a popular line here, and will pay for them as usual on
invoice.However,I wondered if in future you would let me settle my
accountsby monthly statement asthis would be more convenient for me?
As we have been dealing with one another for sometime,I hope you will
agreeto trade on the basisof open accountfacilities.I can,of course,supply
the necessaryreferences.
Yourssincerely
Rpbert
RobertHughes
Enc.OrderNo.91662
VAr H o 2152?61J o
Requcrtfor open
eccounthcilities
Mr Hughes,
someof
whosecorresoondence
we lookedat in orevious
unitsrsee pagesz6-27,
g3-g4,andrc3-ro4,
i f he
askshi ssuppl i er
w i l l al l owhi mopen
facilities.
account
Althoughsomeof their
havebeenby
exchanges
email,thetopicof credit
ismoresensitive
and
wouldbedealtwith by
letter.Mr Hughes
makes
hisrequest
while
sending
an orderrather
thanmakinghisnext
ordercondi ti onal on
Mr Cliffsacceptance.
Compare
thiswith the
letterin whichF.Lynch
& Co.madetheirnext
orderconditional
on
revised
terms
>seepage84.
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fry'y3nntln3
oparxcount
trcllltht
g4g tlnnlJr. Crr{fl <n rrr
Tch9rronc;..H lolrg ro 49711
f tr: r4.4lolrg ro aggtT
I marl] r( kttOho.r*mllcn <orn
In hisreply,Mr Cliffsays
he isprepared
to give
credit,even
thoughhe
feelsit maynot bein Mr
Hughes'bestinterests.
24luly20MrR.Hughes
R.Hughes & Sonttd
2lMeadRoad
Swansea
West Glamorgan 3STlDR
8
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DearRobert
x
Thank you for your order,No. 81662,which will be sent to you tomorrow.
I have taken the opportunity to enclosethe invoice,DM1113,
with this letter.
tll
With regardto your request for open account facilities, setflement against
monthly statements,I feel there would be more advantagefor you in
claiming the 3%cashdiscounts offered for payment within sevendays of
receipt of invoice.Nevertheless,I am quite prepared to allow monthly
settlements,andthere will be no need to supply referencesas you are a
long-standing customer.
The enclosedinvoice will be included in your next statement.
Yourssincerely
.
Ri^&a/d
RichardCliff
Director
Enc.InvoiceDM1113
l(tnt"rrd
i,
5
122
WhydoesMr Cliff
thinkitwouldbe
betterfor Mr Hughes
to settleinvoices
within sevendays?
Whatformof open
accountfacilitiesis
MrCliffoffering?
Whydoesn'tMr Cliff
needanyreferences
from MrHughes?
WhenshouldMr
Hughespayinvoice
o rvrrrr3?
t|o ottT6,
Rcquodio,r
3cnonl cndlt
frcllltlcr
r5r nrc desRaimoni€res
t-t6ooo FoitieruCddcr
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5A
(+131
T6lephone
r 9968ro1r
Tdl6copic(+33]l 74rorr61
Enell p 6erard(odr*<ofr
r.'. PG/AL
3 December20-
Herr R.Gerlach
R.G.ElectronicsAG
Havmart 601
D-50000Koln 1
8
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3
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DearHerr Gerlach
I intend to place a substantial order with you in the next few weeks and
wondered what sort of credit facilities your company offered?
As you know, overthe past months I have placed a number of orderswith
you and settled promptly, so I hope this has establishedmy reputation with
your company.Nevertheless,if necessaryI am willing to supply references.
I would like, if possible,to settle future accountsevery three months with
payments against quarterly statements.
Yourssincerely
P.Qtuad
P.G6rard(M.)
Manager
12'
€
.9
Rcfumlof crcdlt
fr<lllties
Inthis reply,R.G.
Electronics
turn
Disc5.A.'s
requestdown,
eventhoughthetwo
companies
havetraded
for sometime.
R.G.Electronics AG I;H'"'-T,,,
Telefonr*49) 221 J: .,) \rt4
Io{ctu (i 49l zzt E l or t5
Imerl 5t'rl atnr6rge.co.de
it'r'Jwl!:le.0e
vorr Ref. PG/AI
8 December20-
8
M. P.Gdrard
DiscS.A.
251ruedesRaimonidres
F-85000PoitiersCedex
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DearM.Gerard
Thank you for your letter of 3 Decemberin which you enquired about credit
facilities.
We appreciatethat you have placed a number of orderswith us in the past,
and are surethat you can supply the necessaryreferencesto support your
request.However,as you probably realize,our products are sold at
extremely competitive prices.This allows us only small proflt margins and
prevents us offering any of our customerscredit facilities.
We are very sorry that we cannot help you in this caseand hope you
understandourreasons
Onceagain,thank you for writing, and we look forward to hearing from
you soon.
Yourssincerely
-tl
K. Qil'ttlQt
R.Gerlach
Sales
Director
E
€
!aO
124
I HowdoesHerr
Cerlachassure
M.G6rard
that his
firm'sreputationhas
nothingto dowith
the rejection?
2 Whatreasondoes
I ls it onlyin
HerrGerlachgivefor M.G€rard'scase
refusing
credit
that credithas
facilities?
beenrefused?
4 HowdoesHerr
Gerlachencourage
further
correspondence?
Requestfor a
c h a n g ein t h e
termsof payment
DearMr Merton
Our bank has advisedus that the proceedsof our letterof creditagainstyour invoice,
No. G1197/S,have now been creditedto your account.
Althoughwe havepaidfor some time on this basis,it does not reallysuit our accounting
system,and as we feel you know us well enoughby noq we would liketo makefuture
paymentson quarterlystatementsby internationalbanker'sdraft.
lf you requirea reference,pleasecontacteitherMr M. Piersonor Mr J. Taneat our other
suppliers,Pierson& Co, Louis Drive,Dawson,Ontario,who will be happyto vouchfor us.
As we haveseenin
previousunits,
MacKenzieBrosof
Canadaimport
chinawarefromGlaston
Potteriesin England.
Theycurrentlypay
by letter ofcredit
>see pages58 and 85,
but now want to pay on
quarterly statements by
internationalbanker's
d raft.Thisinvolvesfairly
long-termcredit,so they
supply references.
ar
o
CL
8
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xcl
3
.g
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3
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Pleaseconfirmthat these new terms are acceptableto you.
I
RichardMacKenzie
Notificationof
takingup
references
RE: Termsof payment
Potteries
Glaston
are
sympathetic
to Mr
MacKenzie's
request,
but
decide
to takeupthe
reference
offered.
DearMr MacKenzie
Thankyou for your emailof 9 Februaryin which you askedto changeyour terms of payment
to settlementby banker'sdrafton quarterlystatements.
We are takingup the referenceyou offered,and providedit is satisfactory,you can consider
the new arrangementeffectivefrom your nextorder.
JohnMerton
SalesManager
GlastonPotteriesLtd
Clayfield,BurnleyBB101RQ
Tel:+44 (0)128246125
Fax:+44 (0)128263182
Email:j. merton@glaston.co.
uk
r25
TI
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8
A s K T N G A Bo u rc R E D rr
R A TTN c
The guide below givesyou an outline of how
to take up referencesand to askabout a
c o m p a n y ' s c R E DR
Ir AT IN G.
Saywho you are and why you want the
information.Make it clearthat the name of the
companyyou arewriting to hasbeen givento
you as a referenceby your customer.If this is
not the case,you areunlikelyto get areply
" seepager27.
- Weareafurniture wholesalers
and havebeen
askedby L R Naismith& Co.Ltd oJzt Barnsley
Road,Shefieldto ofer them openaccount
facilities with quarterlysettlementterms.
Theyhavegiven usyour name asa reference.
- Weare a glassmanufacturersand have
recentlybegunto exportto the uK.D.R.
Mitchell & Son,whoarecustomersof yours,
haveplacedan orderwith us,but want to pay
byjo-daybillofexchangeTheyhave
inJormedus that you would bepreparedto
act astheir referees.
- YourbranchoftheEastlandBankwas
given
Ltd,whohave
to us asa referenceby LT.S.
placeda substantialorderwith us,and want
to settleby 4o-daydraft Couldyougive us a
guideto I.T.S.'s
creditrating?
Sayexactlywhat you want to know.
- Wewould liketo know if the companyis
creditworthyand hasa good reputati.on.
- Wewould begrateJulif you couldtell us if the
companyis reliablein settling itsaccounts
promptly.
- Couldyou let us know if this companyis
capableoJrepaying a loan oJ this sizewithin
thespecifiedtime?
- Couldyou tell us if the companyhasa good
reputationin your country;whetherthey can
be reliedon to settlepromptly on due dates;
and what limit you wouldplaceor have
placedon creditwhendealingwith them?
rz6
Iftheamountofcredi ti sknow n' i ti susually
mentioned.
- Thecreditwill be about f,6,ooo.
- Wedo not expectthe creditto exceedf,4,ooo.
-Thedrafti sforf,gz6oo.
- It is unlikelythat they wiII askfor morethan a
ft,ooo creditat this staqe.
Thankthe companyin advancefor giving
you the information, and tell them you will
reciprocateifthe opportunity arises.AIso,let
themknowthatwhatevertheysayintheir
ietter will be treated asconfidential.
- Wewould liketo thankyou in advancefor the
inJormationand can assureyou that it will be
treatedin the strictestconfidence.
and the
- YourhelpwiII beappreciated,
We
information will be held in confidence.
will return thefavour shouldthe opportunity
ar6e.
- Wecanassureyou that the information will
notbedisclosed.Thankyouforyour
assistance
in this matter.If we can reciprocate
in a similar situation,pleasedo not hesitate
to contactus.
Businessassociatesmay give more
information than banksand trade
who will usually only givebrief
associations,
references but seepagetz7.An enquiry
agencywill give much more detail about a
company,and for a fee,will researchits
financial background,its standing,
creditworthiness,and ability to repayloansor
fulfiI obligations.When writing to an enquiry
agency,therefore,you can ask for more
information.
- Wehave beenaskedby D.F RowlandsLtd of
MiltonTradingEstate,Peterborough,to
providethem with a creditof up to t 5,ooo by
allowingthem to settleby quarterly
As we haveno knowledgeof this
statements.
company,would it bepossiblefor you to give
usdetailedinformation of their trading
activitiesover,say,thepast threeyears?
- Thecompanynamedon the enclosedslip has
written to usaskingif we would allow them to
settleby 6o-daybill of exchange.Our trading
with them sofar hasonly beenup to
tt,5oo.oo.As we knownothingaboutthem or
their creditworthiness,couldyou investigat e
their businessactivitiesoverthepastfew
yearsand give us a detailedreport?
T O EN q U rR rES A BOU T
RE P L YT N G
CRE D ITR A T IN G
In most countriesthere arelaws which
protect a companyfrom having its reputation
damagedby anyonesayingorwriting
anything that could harm its goodname,and
this shouldbe consideredwhen giving details
of a company'screditworthinessor
commenting on its standing.
Thereare a number of reasonswhy you may
not wish to reply to an enquiry.If, for example,
the companywriting to you doesnot statethat
you havebeennamedas a REFxREE
bytheir
customer,and you do not want to risk
offending a businessassociate,
it would be
better not to make any comment.
- Thankyoufor your letterconcerning
our
customer,but we cannotgiveyou any
information until wegetpermissionfromthe
customer.Couldyou thereforeasktheperson
mentionedinyour letterto write to usasking
Wewould then be happy
us to act as referees?
to giveyou the necessary
information.
- As we havenot beenaskedby theperson
mentionedin your letter to write a reference
on their behalf,we cannotsupplyany
informationaboutthem.
Ifyou do not know enoughabout the company
to comment,then it is better to sayso.
- With referenceto the companyyou
mentionedin your letterof g October,we are
sorryto saywe know little about them aswe
haveonly suppliedthem on a coupleof
occasions.Therefore
we cannotgiveyou any
detailsof theirtradingrecordor creditstanding.
- Thankyou for your letter,which we received
today.Unfortunately,we know nothing about
the companyasour only dealingswiththem
havebeenon a cashbasis.We
aresorrythat
we cannothelpyou in this matter.
Sometimesyou may simply not want to give
any information about a customer,whether
you know their reputation or not. In this casea
polite refusal,generalizingyour statements,is
the best courseof action
- With referenceto your letterof t6 Octoberin
whichyouaskedaboutthecreditstandingof
oneof our customers,
we regretthat it is our
policy neverto give information about
customers
to inquirers.
As business
associates
of ours,we are sureyou wiII appreciatethis.
Perhapsan enquiryagencywould be more
helpful?
6
o
tl
8
Ifyou give an unfavourable reply,do not
mention the name of the company.Giveonly
the factsasthey concernyou Do not offer
opinions,and remind the companyyou are
writing to that the information is strictly
confidential.It is advisablenot to use an open
systemlike fax or email for this kind of
communication.
- With referenceto your letter of t9 April in
whichyou askedus to act as refereesforthe
customermentioned,we
haveonly dealtwith
them on afew occasions
butfound they
tendedto delaypaymentand had to be
remindedseveraltimesbeforetheiraccount
wasclearedBut we haveno ideaof their
trading recordswith other companies.We
are
sureyou will treat this information in the
strictestconfdence.
- In replyto your letterof 4 September
concerning
the customeryouenquiredabout,
we regretthat we cannot recommendthefrm
as being reliablein their creditdealings,but
this information is basedonly on our own
experienceof trading withthem.We offer this
informationonthe strictunderstanding
that
it wiII be treatedconfdentially.
127
t:
!
g
\,
8
rr8
Rrplyiryfercurably
Even in a favourable reply, you should still not
mention the customer'sname if possible.You
can state that you have allowed credit facilities
and,if you are sue, you could mention the
customer has a good reputation within your
trade.In the examplesbelow you will seethat
the referenceshould still be considered
confidential, and that the refereetakes no
responsibility for how the information is used.
- Wearepleasedto inform you that in our
experiencethe company mentioned in your
Ielter oJ7Novemberis completelyreliable
and canbetrustedtocleartheirbalances
promptly on due dates.However,wetakeno
responsibilityfor how this information is
used.
- With regardto the company mentioned in
your lelter of 8 December,wecan assureyou
that they havean excellentreputation in
dealing with their suppliers,and though we
have not given them the credit terms they
hatreaskedyou for, we would allow them
thosefacilitie s if they approachedus.Please
treat this information as confidential.
Lcttrrtoerful
c,ayne,d
W?
IBurn,ey
IBB,o,Ro-
;ntt?lr,
*"
Asnotifiedin theiremail
Glaston
DseePage125,
Potteries
ta keup the
referenceofferedby
MacKenzie
Bros.
r'l
o
c
Telcphone+44 (o)r:8245rr5
F*rimlle +44 (o)rz8:63182
Emeilj. merton@gla
rton.co.uk
www.glaston<om
Yourref:
8
t6 February20-
tn
x
MrM.Pierson
Pierson& Co.
Louis Drive
Dawson
Ontario
CANADA
!l
g3
o
o
*
o
Dear Mr Pierson
We are suppliers to MacKenzieBrosLtd,1-5 Whale Drive,Dawson,Ontario,
who have askedus to give them facilities to settle their statements on a
quarterlybasis.
They told us that you would be prepared to act as their referee,and while
we have little doubt about their ability to cleartheir accounts,we would like
confirmation that their credit rating warrants quarterly settlements of up
to f8,000.
We wouldbe very gratefulfor an early reply,and can assureyouthat it will
be treated in the strictest confidence.
Yourssincerely
Jolwlrtertan,
JohnMerton
Sales
Manager
Rn$rstoled
No 7164Er
vATRf,tistrr?dNo r339343ro8
WhatdoGlaston
Potteries
want Mr
Pierson
to do?
Whyhavetheyasked
Mr Pierson
to dothis?
Whatassurance
do
theygiveMr Pierson
aboutthe
information
they
want?
4 Whichwordsin the
letterhavea similar
meaning
to the
following?
a everythreemonths
b sayingthat
something
istrue
r justifies
d payments
f
-o
:
I
729
:E
!
Rcferee'rreply1
g
lJ
Loui sD ri ve I D aw son l Ontari o l C anada
Tel ephone(+tl $ 4 zg5 t68z
Faci mi l e (+t) 6t4zg5 r4-7t
C abl e P l ER C O
E mri l m pi erson@prerco
co uk
Drte 28 Februarv20-
8
MrJ.Merton
Glaston PotteriesLtd
ClayfieId
Burnley BB101RQ
UK
o
fi
g
g
A.
E
t!
x
EI
DearMrMerton
I am replyingto your enquiry of 16February in which you askedabout
MacKenzieBrosof Dawson,Ontado.
I contactedthem yesterday and they confirmed that they wanted us to act
astheir referees,and I am pleasedto be ableto do so.
The company has an excellent reputation in North America for both seryice
and the way they conduct their businesswith their associatesin the trade.
We have given them credit facilities for at Ieastten years and have always
found that they have paid on due dateswithout any problemp.I might also
add that our credit is in excessof the one mentioned in your letter.
You can have every confidencein offering this companythe facilities they
askfor.
Yourssincerely
Mahnh4,tPtzrson
MalcolmPierson
Director
c
.9
3
I
cv
t 30
WhatdidMr Pierson
do beforehewrote
the reference?
What doeshe mean
by they have paid on
due dotesl
Whatishisopinionof
of MacKenzie
Bros?
How doeshe explain
that they are
creditworthy?
Whichwords in the
letter havea similar
meaningto the
following?
a morethan
b feelingofcertainty
Lettcrto a
refcree2
SatgX
5,p.A,
viadi pietrapapa.
oo146Roma
relefono:+39(o)67699ro
Tnlefax:
+39(o)568i5473
Ernail:
causiod@satex.co.it
Vs.rif.:
Ns.rif.:DC/AA
4JuIy20-
Mr T.Grover
GroverMenswearltd
Browns Lane
Rugeley
staffordshirews15 lDR
q'
4
;
Hereisanotherexample
of takingup references'
thistimefromSatex,
the ltalianmanufacturer
we havemet in previous
customer,
units.Their
F.Lynch& Co.,askedto
beallowedtosettletheir
by4o-daybill
accounts
documents
of exchange,
instacceptance
o
o
e Page84.F.LYnch
& co.offeredreferences,
whichsatexaretaking
F
up.
3
F
DearMr Grovet
g
q
Your name was given to us by Mr L.Crane,the chief buyer of F.lynch & Co.
Ltd,NessonHouse,Newell Street,Birmingham 83 3EL,who have askedus to
allow them to settletheir accountby 40 -dayB/8.
They told us that you would be prepared to act as their referee.We would be
grateful if you could confirm that this company settles promptly on due
" dates,and are sound enoughto meet creditsof up to f 5,000in transactions.
Thank you in advancefor the information.
Yours sincerely
,I
uahre,lp oa/,LftD
DanieleCausio
SalesDirector
13r
Refcree'rrcply2
!
o
I
NotehowMr Grover
sayshewilltakeno
responsibilityfor
how
the informationhe
providesis used,and
remindsSatexthat the
letterisconfidential.
qNI
trl'()VCl'
tr
irt etlsweat'
B rcw ns Iarre
p rffFtfy
5i,l{fi)ril'ih
'i
'it"Ah1'tf,
. '..a'
taX+41tc
1ir
EmAilt
r-.:..iilil(ill
J !rr)J.,
grOvetr;",'
rr ..wD,rr (c ili
8
9 July20-
o
o
o
Mr D.Causio
SatexS.p.A.
Via di PietraPapa
00146Roma
ITATY
q
E
|!
x
gl
DearMrCausio
We have receivedconfirmation from F.Lynch & Co.ltd that they want us to
act as refereeson their behalf, and can give you the following information.
We have been dealing with the company for ten years and allow them
credit facilities of up to f4,000, which they only use occasionallyasthey
prefer to take advantageof our cashdiscounts.However,we would have no
hesitation in offering them the sort of credit you mentioned, i.e.f,5,000,as
they are a large reputable organization and very well-known in this
country.
Of course,we take no responsibility for how you use this information, and
would remindyouto consider it as confidential.
Yourssincerely
7'.Qrorer
T.Grover (Mr)
Director,GroverMenswear
c
3
3
:
o
t32
WhatdidMr Grover
do beforecontacting
Satex?
Whatexpression
is
usedto mean.,for
them?
Why doesF.Lynch&
Co.onlysometimes
useGrover
Menswear's
credit
facilities?
HowdoesMr Grover
explainthat his
companywill
not be
liablefor Satex's
decision?
Whichwordsin the
letterhavea similar
meaning
to the
following?
r tradingwith
b respected
( private
DearMr Stevens
I am replying to your letter of L0August in which you askedabout one of
our mutual businessassociates.
I regret that I cannot give you the information you askedfor as it would be a
breach of confidence.if, however,you can get the company to write
instructing us to act as their referee,then we may be able to help you.
tegativc rcpllcr
to enquirlcsebout
crcdit retlng
I
g
Inthis letter,the writer
refuses
to replybecause
hedoesnot havethe
permission.
company's
Yourssincerely
Mark cluf't44/t/.r,
MarkChapman
8
ln
x
DearMr Scrutton
I amreplying to your enquiry aboutthe companymentionedinyourletter
of 3 May.
Thereplyin thiscaseis
unfavourable.
Notice
howthe writerdoesnot
refertothe companyby
name.
ll
3
TI
o
6i
o
u
In the past we have allowed that company credit,but nowhere near the
amount you mentioned, and we found they neededat least one reminder
beforeclearingtheir account.
Thb information is strictly confidential and we take no responsibility for
howit is used.
Yourssincerely
larah, Wentworth,
SarahWentworth
DearMr Cox
In reply to your letter of ro August, I regret that we cannot offer you any
information concerning the company you askedabout in your letter. We
have had very little dealing with them and they have never askedus for
credit of anykind.
Thewriterof th isletter
i sunabl eto
suppl ythe
information
his
correspondent
wants
because
hehaslittle
knowledge
of the
comPany.
I am sorrywe cannot helpyou inthis matter.
Yourssincerely
H.F.Ed^6lex
J,/
H.F. Edgley (Mr)
r3,
€
,9
lcfterto an
cnquiryrgent
on a
Checking
creditrating
customer's
with anenquiryagency
to bemore
allowsyou
aboutthe
specific
detailsyouwant
the
concerning
customer.
P.M ARIOW & C O. LID
Jr C oodge S treet
Iondon
r , c 44 r r
Telephone:
+44(o)zo75836rr9
Fax:+44@)zo75g7tz5
p.marlow@pma
Ernarl:
rlow.co.uk
9 April 20-
8
o
o
o
Mr S.Spade
Credit Investigations Ltd
1Bird Street
londonEl 6TM
A
E
o
x
DearMr Spade
EI
Youwere recommendedto me by a previous client of yours, S.Greenstreet
& Co.Ltd.
I would like information about FalconRetailersLtd,who have askedus to
allowthem open accountfacilities with quarterly settlements and credits
of upto f8,000.
Would you pleasetell us if this company has had any bad debts in the past;
if any legal action has been taken against them to recoveroverdueaccounts;
what sort of reputation they have amongst suppliers inthe trade; whether
they have evertraded under another name, and if they have,whether that
businesshasbeen subjectto bankruptcy proceedings?
Pleasewould you make the necessaryenquiries,and let us know your fee.
Yourssincerely
PatMarhu
PatMarlow(Ms)
Director
R edr s t?r edr r InSl and 22]J 5 9
v AI r 4u 7.1r 5O 3
E
€
E
A
13 4
l Hf f idoes M s M ar l o w 2 W h y w o u l d th e
SW hi chw ordsi nthe
askif the company
supplierwantto
letterhavea similar
has*ro'vedmoney
knowifthecompany
meaningtothe
before?
hasevertraded
under
following?
anothername?
a latepayments
b legalaction
to
closethe business
Credit
t BirdStreet
London
rr 6rrut
l_l;"r.igations
Telephone
+44@)zo764't494
Fax+44(o)2o764t965
E m a isl p a d e s @ c r e d i t . c o . u k
Enquiryagent's
reply
f'l
o
A.
26 ApriI2}Ms Pat Marlow
P.Marlow& Co.Ltd
31GoodgeStreet
LondonEC44EE
'
8
Itt
DearMsMarlow
xqJ
As requestedin your letter of 9 April we have investigated Falcon
RetailersLtd.
g
o
It is a privatelimited companywith a registeredcapital of L10,000and
consistsoftwo partners,David and PeterLorre.It has an annual turnover of
f400,000 and has beentrading sinceOctober1993.As far aswe know,
neither the companynor its directorshaveeverbeen subjectto bankruptcy
proceedings,but the companywas involvedin a court caseto recoveran
outstanding debt on 17lanuary 20-. The action was brought by [.D.M. Ltd
and concernedthe recoveryof f 3,650,which Falconeventuallypaid.We
ought to point out that I.D.M. broke a delivery contract which accountedfor
the delayedpayment.
o
3
|D
From our general enquiries we gather that some of Falcon'ssuppliers have
had to sendthem secondand third remindersbeforeoutstandingbalances
were cleared,but this doesnot suggestdishonestyso much as a tendencyto
overbuy which meansthe companyneedstime to sellbeforethey can clear
their accounts.
We hope this information provesuseful.If you have any further enquiries,
pleasecontactus.
Youwill find our accountfor L475.OO
enclosed
Yourssincerely
S.Ipn/",
S.Spade
CreditInvestigationsLtd
Enc.Account
R eg London 312156t
Howmanypeople
3 Havetheyevergone
runFalcon
Retailers?
out of business?
Whataretheir
annuasa
l les?
4 Havelegal
proceedings
ever
beentaken against
the m ?
D o e s th e company
settleitsbalances
on
duedates?
7 Whichwordsin the
letterhavea similar
meani ng
to the
following?
WhatdoesMr Spade
a researched
thinkFalcon
Retailers'
,
b get back
problemis?
c unpai d
tr
'o
o
f,.
o
5
135
Pointsto remember
g
!
g
\,
1 Credit is only given if the supplier knows
that the customerhas a soundreputation,
knows the customerwell, and / or has a
referencefrom a bank or businessassociate
of the customer.
2 When asking for credit, saywhy you want it
and convinceyour supplier that you will pay
on due dates.Statehowlong you havebeen
dealingwith the company and offer
supportingreferences.
8
3 When refusing credit, you should give
reasonsand convinceyour customerthat
the refusaldoesnot discriminateagainst
them in particular.Using generalizations
can help,e.g.Weusually/ as a rule/ normally
do not ofrer creditfacilities.
4 \Mhentaking up a reference,tell the
company who you are and who you are
enquiring about. TeIIthem the type of credit
involved,e.g.bill of exchange,monthly
settlements,and let them knowhow much
the credit is for.Assurethem that the
information will be treated in confidence
and that you will reciprocateshould the
occasionarise.
5 When writing an unfavourable reply, if you
do notwantto comment on a company's
reputation, simplywrite thatyou do not give
information about any of your customers.
Alternatively, be brief, stating onlythe facts
asthey concernyou. Do not give opinions or
mentionthe name of the company.
6 When writing a favourable reference,state
that you have allowed the company credit
facilities but do not mention its name. Tell
the enquirer the information is given in
confidenceand without responsibility.
136
Banksin the UK
r 38
TYPEsoF B A N K
138 Merchantbanks
118 Commercialbanks
r38 Private
banks
t x Ar{ p tEs
138
c oM M ERc T A L B A N K F A c t L r r r E s r N T H E u K
r38
r39
r39
139
r39
139
14o
14o
141
141
142
143
lM
145
146
Currentaccounts
Depositaccounts
Creditand debit cards
Standingordersand directdebits
Loansand overdrafts
Administrativecorrespondence
Op e n rn gi curr€ntac(ouni
C h ; n g e6 f srgrt.rl
ure
R c q u c rtfor a startdrrrg
order
of .rcheoue
C a n c e l l .r tron
Advrceof an overdr.rwn.lccount
R e p l yto a dvrceof an overdraw naccount
Requertfor an overdr.rftor loan
Grantrnga loan
Refusingan owrdraft
International banking
BrL rsOF E X C H A N GE
Atypical billof exchange
A d v i s i n g d espatchofabi l l
Srllof erthange
Advisingderpatchof a right bill
Requestto a bankto forwarde bill
Requestto a bank lo accepta bill
Non-paymentof a bill
D OC U ME N TA R Y C R E D TTS
Shippingdocuments
The stagesin a documentarycredittransaction
Standbyletter of credit
Ad o c u m e nl arycredi tl r;rnracti onl
-F ro m th e i mporterrto the r* urn6 bank
Ap p l i c a tro form
n
for do< umentary
credrt
Fromthe importerr to the exporlert
Fromthe confirmrngbank to the exporters
Notlficationof documentarycredit
Fromthe exporterrto the con6rmingbank
From the exporters to the importer
Fromthe importerr'bank to the importers
A documentarycredil lransaction2
-From the importersto lhe expoders
trom the exportercto the importerr
Pointsto remember
Banksin the UK
Internationalbanking
147
148
e x A M p r-Es 1 4 9
15o
15r
r52
r53
154
155
r55
155
r56
tx A M p rEs 1 5 7
158
159
160
r6r
16z
163
164
165
166
167
167
tI,
o,
=
F
-o
=
ga
Ba nks
in theUK
00
tr
I
T Y PE SOF B AN K
c
t!
!o
Thesecanbe dividedi.ntothree main groups:
M ERCHANT
9
BANKS,
COM M XR C IA].
BAN KS,
a n dp n rv a rr B AN KS(B u l rorN c socrE TrE s,
which are MUTUALinstitutions where people
can saveand borrow money,primarily to buy a
home,alsoexistin the UK,but many of them
haveconvertedto public limited companies
and now competewith commercialbanksin
offering domesticserviceslike current
accounts,
loans,MoRTGAGT
s, and insurance,
a n dw i l l a c ta sT R U S T Exs
andnxecurons,
like banks.However,FoRxrcN EXcHANGE,
discountingservices,and negotiating
documentsare still primarily dealtwith by
banks.)
Merchantbanks
Merchant bankstend to encourageIarger
organizationsto usetheir services,and while
the facilitiesthey offer are simiiar to thoseof
the commercialbanks,merchantbanks
specializein the areasof internationaltrade
and flnance,discountingbills,conflrming the
cREDITsTATUS
of overseas
customers
throughcorFrRMrNGHousr s,actingin the
NEW ISsux rvranrnt,and in the nurlrorv and
EuRoBoND mnnrnrs. Theyare,in addition,
involvedin the shipping,insurance,and
FORNIGN
EXCI{ ANGX
MARKXT S.
Commercialbanks
Commercialbanks,alsoknown as cLEARTNG
saNrs, offer similar servicesbut are
particularlyinterestedin prlvatecustomers,
encouragingthem to usetheir current,deposit,
and savingsaccounts,and creditfacilities
Theywill iend money,againsts EcuRrrrEs,
in the form of ovERDRAFTS
and loans,pay
accountsregularlyby standingorder,and
transfercreditsthrough the bank giro system.
Essentiallythe differencesbetweenthe
merchantand commercialbanksarethe
latter'savailabilityto customerswith their
numerousbranchesand lower charges,and
138
the laws which govern the way eachtype of
organization handles its affairs
As well aslocalbranchesin towns and cities,
the commerciaibanksoffer:
- TELEpHoNx BANKTNG,
which providesa
twenty-four-hour servlceand allows
customersto obtain detailsof their account,
transfermoneybetween accounts,paybills,
etc.
- OrtrIu r saNKINc, which allowscustomers
to make payments,transferfunds,and
accessinformation about their accounts
using the Internet.
Privatebanks
Privatebanks ofier similar facilities to the
commercialbanksbut tend to be more
expensiveto use.
C OMME R C IA LB A N K FA C ITITIESI N
TH E U K
Currentaccounts
A current accountcanbe openedby anyonein
the UK providedthey can provetheir identity
with, e.g.a driving licence,international ro
card,or passport.The advantagesofthis type oi
accountincludebeing ableto make payments
by cheque.Forextra securitythe customer,
when paying by cheque,ls requiredto use a
cHEquE c.anp,which makesthe bank
responsiblefor the chequepassed,up to the
Iimit statedon the card.This alsoactsas a
cASH cARDallowing money to be drawn frorr.
cashdispensersevenwhen the bank is closed
Although chequescan be drawn
immediately, it can take three working days
beforethe amountis DEBITED
or cREDITIDtc
an account.
When depositingcashor cheques,a
pAyrNG-rNsr.rpis usedto recordthe deposit.
Its couivrnnrorr.,withthe bank'sstampano
cashier'sinitials, actsasproofthat the deposi:
was made.
It is possibleto ovnRDRAwa current
account,i.e.take out more money than there
-
in credit. Manybanks offer current accounts
where overdraft facilities are automatically
included, sometimes at no extra charge.
However,large overdrafts require the bank
manager'sagreement.
Many companieshave more than one
current account,e.g.a Number r account
for payingwagesand ovrnHraps, and a
Number z accountfor paying suppliers.
Depositaccounts
Banksofier severaltypes of or po srr
Ac co uNT, e.g.instant accessaccounts,where
money can be withdrarnm at any time, and
notice accounts.where advancenotification
has to be given for withdrawal, e.g.thirty, sixty,
or ninety days.
Creditanddebitcards
Cnrorr cARDSoffer credit facilitiesto
customersbuying goodsor servicesin shops,
by mail order,or onthe Internet. Thereis a
limit to the amount the customer can spend on
most cards,and credit cardcompanieschargea
basicfee plus monthly interest.
Dnnrr cARDSuseEFTpos(ElectronicFunds
Transferfrom Point of Sale)technology which
allowsthe shopto'swipe'the card,transferring
money out of the customer'saccountinto the
shop'saccount directly.
Theincreasinguse of credit and debit cards
has resulted in a decline in the use of cheques.
Loansand overdrafts
Loansand overdraftsfor large amounts usually
require a formal agreement.A loan will usually
be coveredbyN E GorrA B LxsE cuR rrrE s,
e.g.
shares,with repaymentspecifiedon the
agreement.In the UK,interestis not controlled
by law but by market forces.The money for a
Ioan is immediately depositedinthe
customer'saccount.In the caseof an overdraft,
the customeris given permissionto overdraw
an accountup to a certainlimit.
Administrative
corresponden(e
E
0,
=
4
=
qe
9
The examplesoverleaf,and others in this unit,
could also be handled by a telephone caIIto the
bank. The bank employeewill in most cases
have a template form on-screenwhich he or
shewill f,Il out for the customer after
obtaining their passwordor security number
and details of their business.However,it may
be advisablefor the customer to follow up a
telephone conversationwith a letter, fax, or
email sothat there is a written record of the
transaction.
Standingordersanddirectdebits
Customersmaking regular payments, such
as rent, or mortgage repayments,can askthe
bank to transfer the money to the payeeon a
particular day every month. A srarprrrrc
oRDERor a DrREcrorBIt aretwo ways of
doing this. For a standing order,the amount to
be paid is specifledin advance.For a direct
debit, the bank pays the amount chargedby
the payee.
139
00
tr
J
tr
r!
o
9
Opcnlngl <urrcnt
rccount
Inthisexample,the
ownerof a fashionshop
isapplying
to opena
currentaccount.The
b a nkm anager will
acknowledge
the letter,
tellthecustomerthat
the account
hasbeen
openedandthe money
credited,
andeither
enclose
a chequebook
or
let herknowthatoneis
beingprepared.
DearMrDay
I would appreciateit if you could open a current accountfor me under my
trading name R & SFashionsLtd.Enclosedyouwillfindtwo specimen
signatures,my ovrn and that of my partner Ms Catherine Sidden.Both
signatureswill be required on all cheques.I also enclosea referenceftom
Mr StephenYoung,who banks with your branch, and a chequefor f,357.00
with a paying-in slip.
Yourssincerely
Artttz Rolrerts
Anne Roberts(Mrs)
UI
o
g
g
CL
E
|!
x
UI
Changcof
rlgneturc
Thebankmustbe
informedofanychange
of address
and,ashere,
of a changein the
on
signatures
required
cheques.
DearMrWinston
Pleasenote that asfrom t1 August 20- the two signaturesthat will appear
on chequesfor our Number 1and 2 accountswill be mine and that of our
new accountant,Mr Henry Lloyd,who is taking over from Ms Dianne
'
Knibbs.
I enclosea specimen of Mr Lloyd'ssignature and lookforwardto your
acknowledgement.
Yourssincerely
t rank Wearutl
FrankWearing
r40
Requestfor a
standingorder
DearSir / Madam
E
!,
I
d
5
oe
AccountNo.33152
11o95ol
We havejust movedto new premisesat the aboveaddressand would like to
pay our monthly rent of f,1,574.00
to our landlords,Richards& Long,30 Blare
Street,IondonSW71LN,by standing order.
Would you pleasearrangefor f 1,574.00
to be transferredfrom our No.2
accountto their accountwith DewlandsBank,LeadenhallStreet,Iondon
EC2,on the rst of everymonth, beginning 1May this year?
Pleasewould you conf.rmthat the arrangementhasbeenmade.
9
Yoursfaithfully
Q.K.Archnr
tn
G.K.Archer(Mr)
!,
x
3
E.
o
6o
;'
3
o,
liitffi
I
Cancellation
of a
cheque
DearMr Mathers
PleasecancelchequeNo. 17892165001
for t1 ,672infavourof B. Gelt Ltd.
The chequeappearsto havebeenlostin the postand I am sendinganotherin
its place.
B. Steward
Accountant
t4r
a0
E
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tr
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o
9
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E
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ul
Adviceof
an overdrawn
ercount
Banksprefernotto
because
sroI cheques
it
of the embarrassment
the customer,
cancause
but if thereis no
for
arrangement
and
overdraftfacilities,
in the bank
thecheque,
opinion,
is
manager's
too large,it maybe
Inthe caseof
stopped.
however,
Mr Hughes,
lets
the bankmanager
the credittransfergo
through.Naturally,
not
the managerwould
useanemailforthis
confidentialtransaction.
Telephone+4a,@)1792
4,59oo8(ro lines)
Facsimile+44 @)r79243t726
k
EmaiI collisd@welshcoop.co.u
Bank
Co-operative
Welsh
SeawayHouse
ClendowerRoad
Swansea
WestClamorgan
8 n r ur r a
8 August20MrR.Hughes
R.Hughes
& SonLtd
21Mead
Road
Swansea
WestGlamorgan
3STlDR
DearMrHughes
AccountNo.0556853
01352
58.63on
I amwriting to inform youthat you now havean overdraftof f,1,3
your currentaccount.
Ltdasyou havea
Wepassedyourlastcredittransferto Homemakers
substantialcreditbalanceon yourdepositaccount.Ifyou requireoverdraft
facilitiesonyour currentaccount,Isuggestthat you contactme andwe can
discussa formalarrangement.
Yourssincerely
DaDA co[1,0t
DavidCollis
Manager
Chotmon
A C M Conway
Dircctotr
R M. Lloyd
C R GymreA .r9
R eg"N oS w ans ert.r,
WhyhasMr Collis
passed
Mr Hughes'
cheque
althoughit
ledto an overdraft?
142
Whatdoesheadvise
to do if he
Mr Hughes
wantsan overdraftin
future?
Whywouldn'tthe
bankmanager
usean
emai il nthi scase?
Il, ffrs!!hcs
* Sr*uf,fe*
zr AAcedRoed.Swrnrer
West 6l emorgan trr rD r
Telephone +1.3 :: r-il iS"i41
Fax Syvarr,ea+i": . ..t j \q.!,:t
r.hr[i ^f{ i ' .r3- a: .
E /radr:/:
10August 20MrD.Collis
Manager
Welsh Co-operativeBank
SeawayHouse
GlendowerRoad
Swansea
West Glamorgan 8RNlTA
Replytoadvice
of an overdrawn
account
Mr Hughesisaware
that the credittransfer
couldhavebeenstopped,
whichwouldhavebeen
embarrassing
for him,
especially
ashehad
recentlyarranged
monthlysettlements
with Homemakers
>seePages12r-122
andtherehadearlier
beena problemover
a credittransfer
>seePages93-94.
E
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3
=
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9
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E.
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DearMrCollis
Thank you for your letter of 8 August. I apologizefor not being aware that I
had a debit balance on my current account.
I have now checkedinto this and discoverthat the reasonfor my account
being overdrawn was that I had receiveda post-dated chequefor f,1,700.00
from a customer,andthis had not been deared. However,to avoid a
repetition I have transferred f 1,500.00from my deposit account into my
current account,andthis should ensure against overdrawing infuture.
Thank you for passing the credit transfer to Homemakers despitethe debit
balance it created.
Yourssincerely
Rnbut U"!l*
Robert Hughes
VAT
WhywasMr Hughes'
accountoverdrawn?
Whyhadn'tthe
fr,7oochequebeen
cleared?
^lo
Howhashe made
sureitwon't happen
again?
215225r 30
oC
tF
o
t
5
r43
OD
E
J
E
t!
E
9
o
Requestfor an
ov erdraftor loan
Inthisletter,Mr Cliff
wants
of Homemakers
to obtaineitheran
overdraftor a loanto
hisf ur nit ur e
e xoand
factory.Heasksfor an
to discuss
appointment
th is,andexplains why
heneedsthemoney.
Asit isan imoortant
matter,a letterismore
thana
appropriate
call,fax,
or
telephone
e m ail.
S.{, Sg F i v r i ;da
I
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ri
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I
C er di ff c r r r r v , r
" : I
/o r .) ,i
lnrX
{3 ) l
'- ;l - ,:) r ) l
i(
'r
,
t,,;/:r ;r l .i Ir
i '( ",a
18September20Mrl.Evans
Barnley'sBank Ltd
O_ueens
Building
CathaysPark
Cardiff CF19Ul
-c
g
ct
E
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x
gt
DearMr Evans
I would like to make an appointment with you to discussan overdraft or a
Ioan to enableme to expandmy business.
I havebeentesting the market with a new line of furniture assemblykits,
has
and havefound that demandfor thesekits,both hereand overseas,
past
I
have
had
over
my
expectations.
In
the
six
months
alone
exceeded
f 6o,ooo worth of orders,half of which I havebeen unableto fulfil because
of my limited resources.
I would needa loan for about 118,000to buy additional equipment and raw
materials.I can offer f,8,000in ordinary shares,and f,3,000in local
government bonds as part security.I estimate it would take me about nine
months to repay a loan of this size.
I enclosean auditedcopy of the company'scurrent balancesheet,which I
imagine you will wish to inspectprior to our meeting.
I look forward to hearing from you.
Yourssincerely
i,,,'l
' ' i,t it.; i ,.t ,.., t;i '
t
Richard Cliff
Director
Enc.
Whydo esMrCliff
need an overdraftor
loa n?
f,
cf
144
What new linedoes
he want to put on the
market?
What securitydoes
he offer?
What is a balance
sheet?
What evidencedoes
he offer to show his
comPanyrsIn a
healthy state?
Whichwords in the
letterhavea similar
mean ing to the
following?
.r talkabout
b enlarge
s beengreaterthan
dl meet(orders)
. asse55
(byan
I checked
accountant)
Ctlil|l;rlu
IARNLEY'SIANK p k
t|l.J
t t1ttnl
Otid
.aa lol,l
. . + a ro l j 9
F
I ll,l,r1
?fii
(.lt\.tr
hrl
fArl
rrr
F lrltta
trtctl
Cldrll
c t r g{r :
rwrnrObrr6lar
betnl+ar
rr ul
rtrrr
Mr CliffandMr Evans
havenow hadtheir
meetingandMr Evans
haschecked
Homemakers'accou
nts,
Hehasconsidered
the
matterof the overdraft
or loan,and
isnow
replying.
E
t,
I
4
5
tn
Drtr 27September20Mr Richard Cliff
HomemakersLtd
54-59Riverside
Cardiff CFrilW
9
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3
DearMrCliff
E
o
With referenceto our meeting on 23 September,I am pleasedto tell you that
the credit for f18,000 which you requestedhas been approved.
6o
We discussedan overdraft,but agreedit would be better if the credit were
given in the form of a loan at the current rate of interest (-%), calculatedon
half-yearlybdances.
The loan must be repaid by 30 June 20-, and we will hold the t8,000
ordinary,sharesand f,3,000local government bonds you pledged as
security.We agreedthat the other f2000 would be guaranteedby
Mr Y.Morgan, your businessassociate.I would appreciateit if you cor.rld
ask him to sign the enclosedguarantor's form, and if you could sign
the attached agreement.
The money will be credited to your current account and will be available
from 30 Septembersubject to your returning both forms by that time.
I wish you successwith the expansion of your businessand look forward to
hearingfromyou.
Yourssincerely
Il"tt t tittL(
IanEvans
Manager
Enc
-t
:l ? t'tl l l r-r.
<-
t, F
t i} F.r r r
( ' r AIl..&$ar ( r
tr Dt ltr ce..r,Q |lrrfart
WhatdoesMr Evans
offerMrCliff?
I Whichaccountwill
the loanbepaidinto?
Howisthe interest
onthe creditto be
charged?
a Whenwillthecredit
beavailablefrom?
l c h.r aF
r Whichwordsin the
letterhavea similar
meaning
to the
following?
r paidback
I a person
who
guaranlees
something
t contract
r45
F
E
o
lo
lcfudn3an
ordnfr
Mr Ellison's
company
ownsa chainof petrol
stationsandgarages.
He
isalsoa customer
of
Barnley's
Bankandhas
alsoaskedfor an
overdraft,
but in hiscase
the bankisnotwillingto
lendhimthe money.
plc
BARNLEY'BANK
S
IleadOfice QueensBuilding'CathaysPark.Cardiff cFr 9u,
Telephone+44(olzg zo 825316
Fax+4,4(o)zgzo 64625
Email ievans@barnleys.co.uk
www.barnleys.com
Date 19 November 20-
MrP.Ellison
Ellison & Co.Ltd
BridgendRoad
BridgendCF313DF
9
o
i
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!r
DearMrEllison
E
|!
x
I regret to inform you that we will not be able to offer the credit of f 85,000
you askedfor at our meeting on 14November in order to expand your
business.
gl
Youhave had a f25,000 overdraft this year,and this has partly influenced
our decision.The current credit squeeze,which has particularly affected
loans to the servicesectorof the economy,was also a factor. May I suggest
that you approach a finance corporation asthis type of organization might
be in a better position to help in the current financid dimate?
I am sorrythat we haveto disappointyou inthis matter, andhope thatwe
maybe of more helpinthe future.
Yourssincerely
.
Iaa,Euzns
IanEvans
Manager
Chalrfian B Dlvcnport F I D
D r r r fl o4 B I i c x r ny c ,D
r c ,c r .s .,A.L.Br odw i ne I c a.N C har dl r
Reg No Cardiil 35166r{
I Whydid Mr Ellison
wantthe credit?
r46
2 Whattwo things
I Whatalternative
influenced
Mr Evans's
doesMr Evans
decisionnottoallow
suggesttoMrEllison?
creditin thiscase?
International
banking
On page78we lookedat variousmethods of
payment usedin trade outsidethe UK.Herewe
look in detail at two methods of payment,bills
of exchangeand documentarycredits,and the
way in which they involve banks at home and
abroad.
B I t t s O F EX C H AN G E
A s r rr o r x x c H A N Gn(n /E )i s a n o rd ersent
by the onawrn (the personaskingfor the
money / exporter)tothe onawrE (theperson
paying / importer) stating that the draweewill
pay,on demand or at a specifiedtime, the
amount shown on the bill. If the drawee
acceptsthe bill, they will sign their name on
the faceof it and dateit eseethe exampleon
page150.
The bill can be paid to a bank named by the
drawer,or the draweecan name a bank they
want to useto clearthe bill p seethe example
on paget5o.In the latter case,the bill will be
kept at the drawer'sbank until it is to be paid.
When the bill is due it is presentedto the
paying bank. Suchbills are saidto be domiciled
withthe bank holding them.
It is possibleto sendthe bill direct to the
drawee,if they arewell-known to the drawer.
A s rc H r Brl l o r s rc H T D R AIr i s p a i don
pr es e n ta ti o nIn. a p o c u m rN T S AGA TN S T
pAyMENr (n/e) transaction,
the sightbill is
presentedto the importer with the shipping
documents,and the importer pays
immediately,i.e.on presentationor at sight.
A bi l l p a i d o a y s A F rERs rc H r (o /s ) canbe
paid on or within the number of daysspecifled
on the bill. Forexample,3odaysafter sight (or
3o o/s) meansthat the bill canbe paid thirty
daysafter it hasbeen presented.A bill which is
paid after a period of time is caileda usance.
I n a o o c u a n EN T SA G A T N SAc
T c E p rA N cE
(o/a)transaction, the bank will ask the drawee
to acceptthe bill beforehanding overthe
shipping documents.
In the UK,bills of exchangedrawn or
payablein another country are known as
FoREIGNrrr,ls, andthoseusedwithinthe
country in which they are drawn up as
IN LA N Dnrrrs. A crraN B rl r i s onethat i s
not accompaniedby shipping documents.
The advantageto the exporterofpayment
by bill is that the draft canbe prscouNrE D,
i.e.soldto a bank at a percentagelessthan its
value,the percentagebeing decidedby the
current market ratesof discounting Soeven
if the biII is markedgo daysafier sight,the
exportercan get their money immediately by
sellingit to a bank.Thebank,however,will
only discounta bill if the buyer has a good
reputation.Theadvantagefor the importer is
that they are given credit,providedthe bill is
not a sight draft.
Bills can be negotiableif they are ENDoRs ED
(signedon the back)by the drawer.For
example,if Mr Panton,thedrawer of the bill
on page150,wanted to pay another
manufacturer,he could sign onthe backof the
bill, i.e.endorseit, and the bill would become
payableto the personwho owned it. Mr Panton
can endorselt specifically,
i.e.make it payable
only to the personnamed on the bill
A otsHoNounrn bill is onethat is not paid
on the due date.In this casethe exporterwill
pRorESrthe bill,i.e.theywill go to a lawyer,
who will, after a warning, take legal actionto
recoverthe debt.
Thereis alsoa CashAgainstDocuments
transaction(cao),wherethe documentsare
handed overto the importer when cashhas
beenpaid.In thesetransactions,
of course,
there is no bill of exchangeand the importer
(buyer)is not given credit.
E
!J
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4
f
oll
147
00
tr
J
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o
A typicalbill of exchange
Bills of exchangevary in layout from company
to company.>Seepaget5o for another
example.
Number
Exchangefor
_A) _
At _$)_paythis
_fu) _to theo
9
of
_B|IIoJ
/ placedtoaccount
Currency and value of the bill of exchangein
fi.gures
Date the bill is completed
J VVhenpayment is due,e.g.sight; o/s after
sight; on a particular date,e.g.rz October
204 If only one bill of exchangeis required,you
write sola.If more than one is required,write
,rst; and on the secondline before the words
to the orderof,v'nlte secondof sametenor
and date unpaid.This means there aretwo
copiesof this bill, i.e.a second(tenor) copy.
The drawee only signs (accepts)one copy of
thebill.
5 Name of sellerwriting the biil (the drawer)
orthe name of anothernominatedperson
6 Write in words the currency (e.g.eurosor
yen) and the amount,e.g.fwenf thousand
writtenin (r)
7 Left blan-kunlessthere is a specifiedform of
words to be wrltten,e.g.payable atthe
current rate of exchangefor banker'sdrafts in
London
8 Name and addressof the person or comPany
the bill is being drar,rmon, i.e.the drawee
9 Enterthe name of the company (the drawer's
name); name and position of the person
signingthe bill (the signatory)
r48
Pantontrntrtrclu'hlttd
pantmyvorkr lHounrlol ! Mlddlcer
atAAtt-rr,w6,r^
irw6 zre
Fanron
AdvbinS.tcrp.td
of I bill
hntorr xnfur,nB
ha*mpaetEdtofu
foraDutdto#|s
Ttryrwdrrecth
custolsth-UE
ageedtf ddelge
has been rert-
rlr..psoNr +44(o]2o835;oD5
faesrMr!{ +aa(o)ro83536783
EuArLd.panton@pannran
<ouk
E
+
-
2nd March 20-
9
Mrs B.Haas
B.HaasBV.
Heldringstraat 180-2
Postbus54L1
Amsterdam1007
The Netherlands
I
I
D
3
g
a
a
a
DearMrs Haas
OrderNo.8842
'
Thank you for the aboveorder which has now been completed and is
beingsenttoyoutoday.
As agreedwe have forwarded our bill, No.l67lfor f.3,850.00,with the
documents to your bank, Nederlandsbank,Heldringstraat, Amsterdam.
Ttre draft has been made out for payment 30 days after sight, and the
documents wiII be handed to you on acceptance.
Yourssincerely
Donall, Panton
DonaldPanton
Managing Director
A€B,rle'ed No I h8r}rid
26{rl5
I Wh e reh a s t hebillof
exchange
beensent?
ei l l
I Wh e ns h o u l d th b
bepaid?
I H o w c anMrsH aas
o b ta i ntheshi ppi ng
documents?
o
!
O
t
r49
.s
@
Billof exchange
tr
He reisthe b ill
mentionedin the
previousletter.lt has
alreadybeenaccepted
by the drawee,whohas
na meda ba nkin Lo ndon
which shewantsto use
to clearit.
I
tE
E
B/ENo.1671
March 20-
30 daysafter sight payto the orderof
PantonManufacturing ltd
Threethousandeipht hu
9
value receivedpayable atthe
t rate of exchanqefor Ba
'ssight
o
o0
tr
|!
s
x
o
o
Don^ah'?a*tLon
5
o
aging Director
CL
E
t!
x
tlt
Er
o
o
5
ol
150
What type of bill is
th is?
2 Who isthe drawee?
Wh e n m u s t t h e b i l l
bepaid?
il
Qeno
fr&
Ari a r
=ile
-l r o - l o l B
Edit
t"-
::.-,-..JtrJ-xl
View
Fermat
foob
r
Actions
u l= = = - = = Help
|
I
nOviceOrderNo.8540
Advisingdespatch
of a sightbill
Thebillon page15o
wasfor paymentthirty
daysaftersight.lf the
supplier
wants
payment
immediate
or
doesnothavetimeto
checkthecustomer's
they
creditworthi ness,
maysenda sightbill,as
i nthi sexampl e.
E
!,
=
F
I
ge
9
DearJan
tn
Theaboveorderis nowon boardtheleda,sailingfor Copenhagen
tomorrowarriving
Thursday.
As therewasnotimeto checkreferences,
we drewa sightdraftforthetotalamountof t4,150
(fourthousand,
Thiswassentto Nordbank,
onehundred
andfiftypoundssterling).
Garnes
Vej,Copenhagen,
andwillbe presented
to youwiththedocuments
for payment.
x
l
E.
!,
o
o
3
g.
lf youcansupplytwobusiness
references
beforeyournextordel wewillputthetransaction
on a documents
againstacceptance
basiswithpayment
40 daysaftersight.
Bestwishes ,
DonaldPanton
Managing
Director
PantonManufacturing
Ltd
Tel:+44(0)2083530125
Fax:+44(0)2083536783
Email:d.panton@panman.co.uk
r 51
P
tG
o
Requesttoa
bank
to forwarda bill
Exporters
sometimes
a skth eirbank tso
forwardbillsto
importers'banks.
PantonManufacturingltd
,...,,
PantonWorksI HounslowIMiddlesexI rw6
zeo
FEnTtrn
TETEP H oEN
+4 4( o ) z o8 3 5 3o r z 5
FAcsI M I LE+44(o)zo83536783
em arl d . p a n t o n @ p a n m a n . c o . u k
6July20-
9
o
sg
TheManager
MainlandBankplc
PortmanHouse
Great Portland Street
LondonWlN 6LL
tl
E
|!
x
gl
Dear Sir
Pleasesendthe encloseddraftfor t 4,163.00on l.K.B.ProductsPty and
documentsto the National Australian Bank,632 GeorgeStreet,Sydney,
Australia, and instruct them to releasethe documents on acceptance.
Yoursfaithfully
Don^al/,Pa*ttott
DonaldPanton,
Managing Director
Enc.
R egi s ter edN o E n g l a . :
266t35
t52
Requcsttoabank
B
J.I(.B.PRI|BUCIS
PIY
B r r d g eH o u s e
r8j-g Kent$treFt
Sydney
NS W 2 ( ) 0 0
Telepr:one:
+6t (o\z z796tt
F a c s r m t l e '+{r t ( o ) z ; : 7 g 6 a z
Inrarl:lcorey@;kb
com.ar-r
mentionedin the
previousletter now
writestotheirbankto
tellthem to acceptthe
bi[.
oate 18July20The Manager
National Australian Bank
632GeorgeStreet
SydneyNSWzooo
9
tl|
x
t,
g3
DearSir
Youwill shortly receivea bill of exchangef.orf,4,763and relevant documents
from Panton Manufacturing Ltd,Hounsloq UK.Would you pleaseaccept
the draft on our behalf,sendus the documents,and debit our account?
o
o
*
o
Yours faithfuily
L. Corey
, L.Corey
J.K.B.
Products
fty
Presrd.nt
D F r r uc e
M.rrBihg
I
Orfcctor
Tn OIr f,,,r ) i l
0rrcctGrt
I R l \r ,r i l h
T I Btadnr an
r53
o0
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E
9
o
tt
E
o.
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t!
x
ul
Non-paymentof
a bill
lf a customercannot
payabill,theyshould
informtheirsupplier
immediately>see
pagegt.Whena billis
not paidandno notice
hasbeengiven,the
supplier
usually
writes
to the customerbefore
protestingthe bill,
ashere.Notethe
expression
Referto
drawer,whichmeans
the bankisreturningthe
billto the drawer.This
isalsoused
expression
whena dishonoured
chequeis returned.
Alsonoticethat a formal
protestisto be made,
whichmeansthatthe
a
drawerwillcontact
lavtryer
to handlethe
debtif paymentisnot
madewithinthe
time.
specified
Panton Manufacturing ltd
Pdnton Works I Hounslow I Middlesex I rw5:aq
FAN T t r N
r EL EPH oNE +44 (o)zo 8353orz5
F AcsI M I LE+44 (o)zo 83536783
etu n r l d.panton@panma n.co.uk
10April20Mrs B.Haas
B.HaasBV.
Heldringstraat180-2
Postbus5411
Amsterdam1007
The Netherlands
DearMrs Haas
B/ENo.1671
The abovebill for f 3,860.00was retumed to us from our bank this morning
marked'Referto Drawer'.
The bill was due on 5April and appearsto have been dishonoured.We are
preparedto allow you a further three days before re-presenting it to the
bank, in which time we trust that the draft will have been met.
If the account is still not settled,we will have to make a formd protest.
We hope this will not be necessary.
,
Yourssincerely
Dorcall,?anton
DonaldPanton
Managing Director
R egi stereNdo.E ngl ar:
266135
154
Adocumentary
credittransaction1
roo ,So uthS t r eet. W ellingt onI Dir ec t or sC.
: M .P e r i m a n n' L . FD
. rozin
(+641486t7 Fax:(+64)4 3r85 Email:m.tanner@nzbm.co.nz
Telephone:
,
Ian Close
NewZealandBank
TakapunaHouse
Takapuna Street
Wellington8
Dear Mr Close
5
Fromthe
importersto the
issuingbank
N.Z. BUSINESS MACHINES PTY
3 May 20-
E
+
N.Z.Business
Machines,
New
of Wellington,
Zeal and,w hoare
importinga
consignment
of
computersfrom
Delta
9
Computers,
basedinthe
U K ,askthei
bankto
r
E
issuea letterof creditin
5
Delta'sfavour.
E
;
o
*
q
Pleaseopen an irrevocabledocumentary credltfor t22,000 in favour of
Delta ComputersLtd,Wellingborough, UK.I have enclosedyour application
form with dl the relevant details completed.
Pleaseinform me whenyou have made arrangementswith your agents in
tofidon.
Yoursfaithfully
Mi/J4^a^eL
Tan*t"et
MichaelTanner
ExportManager
N.Z.BusinessMachines Pty
Enc.Application for documentary credit
rtl
u0
.E
I
tr
t!
o
form
Application
for docunrentary
credit
v
Hereis a specimen
applicationform.The
form filled in by Mr
T annerfo rh is b an kin
New Zealandwould be
simila rtoth is.
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importers
to the
exporters
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At the sametimeas
theyopenthe creditat
theirbank,N.Z.Business
Machi nes
emai l the ir
supplier.
Noticethat Mr
mentions
Tanner
the
confirming
bankin
London.
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Officialorder 8851
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DearMr Millar
rVeare placingthe attachedorderfor 12 (twelve)C3001computers,your CatalogueNo. 548.
We haveinstructedour bank, New ZealandBank,TakapunaSt, Wellington,to open an
rrevocableletterof credilfort22,000.00 (twentytwo thousandpoundssterling)to coverthe
consignment,
shipment(ClFWellington),
and bankcharges.The creditis validuntil10 June
20-.
Youwill receivdconfirmation
from our bank'sagents,EastlandBank Ltd,401 Aldgate,
London,EC'l 2DN, and you can draw on them at 60 (sixty)daysforthe full amountof the
invoice.When submittingyour draft,pleaseenclosethe followingdocuments.
Billof Lading(3 copies)
lnvoiceCIF Wellington(2 copies)
AR lnsurancePolicylor 824,000.00(twentyfour thousandpoundssterling)
Pleasefax or email us as soon as you havearrangedshipment.
MichaelTanner
ExportManager
N.Z.BusinessMachinesPty
100,SouthStreet,Wellington
Phone:+6448617
Fax:+64 4 3186
Email:m.tanner@nzbm.co.nz
Howdoes
MrTanner
specify
whichcomputers
herequires?
Whatsortof
is t his ?
sh i p m ent
3 Whendoesthe letter
of creditexpire?
5 Whatisthe nameof
the confirming
banl?
4 WhatshouldDelta
Computers
doto get
theirmoney?
6 Whatisattachedto
theemail?
7 W hydoyouthi nk
the insurance
amountisgreater
thanthe invoice
amount?
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Fromthe
confirmlngbankto
thc crportcr
Bank,
London,
Eastland
actingfor NewZealand
Bank,now informDelta
Comouters
that a letter
ofcredithasbeen
forthem.The
opened
documents
listedin the
letteraretheessential
documents.
shipping
9
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c +r ArI 9aN
Lor d S€.r {oi th
A{ar r aC !N G
D T R tC T Ot I P.R r r m er
D rE E croR s R .Li chenM.sc.,BA .,
5 D H arri smano r.t.. P .RA. kermann B .s c
N -1.R enut
n?,(N l onc+44 (o)ro
16l r:zrt (ro l i nes )
Fari mi l e +44 {ol )o ?6i 5 l }16
f n':r,i p l rredw ay$P rl !i J^(, C otn
ffi
eltt{end
(odr
15May 20Delta Computersltd
BradfieldEstate
BradfieldRoad
Wellingborough
Northamptonshire NN8 4HB
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Dear Sir
Pleasefind encloseda copy ofthe notification we receivedyesterdayfrom
the New ZealandBank,Wellington, to open an irrevocableletter of credit in
your favour for f 22,000which will be available until 10June 20-.
You may draw on us at 60 days against the credit as soon asyou provide
evidenceof shipment. Pleasewouldyouinclude the following documents
withthe draft:
Bill of lading (three copies)
Commercial invoice CIFWellington (two copies)
AR Insurance certificate for L24,2OO
Your draft should include our discount commission which is 5%,and our
chargeslisted on the attached sheet.
Yoursfaithfully
P.Me&+ny
P.Medway
Documentary Credits
116
Enc.IrrevocableCredit No. 2 1345
r6o
Notificationof
documentary
credit
BARCIJIYSBANK PtC
DOCUMENTARY
CREDITS DEPARTMENT
BARCIJIYS BANK PLC
LONDONIRADE SERVICESCENTRE
PO BOX 36495, GROI]II\IDFLOOR
ST SWTTHIN'SHOUSE
11112ST SWTTITIN'SLANE
LONDONEC4N 8YB I'K
020 7200 3200 FAX NO: 0870 607 3601
PHOIT\IE:
ANSWERBK:BARCGBG TELEK:418319
SPECIMEN
dah zoJuly 2oo2
IRRWOCABLE CR}DIT NO: - EI\IDC70844
To be quoted on all drafts and conesltoDdeuce
ADVISED TEROUGE
Xff,TFICIARY
5]fXS AND WADLEY LIMITED
4J!ERIEY RoAD
The notification
forwardedto Delta
Computersby Eastland
B a n kw i l l h a v eb e e n
s i m i l a r t o t h i so n e .
lnsteadofa form like
t h i s ,m a n yb a n k sa s k
importersto fax the
applicationform
>seepager58to them
a n d t h e n p r e p a r et h e
letter of credit to suit
the importer's
requirements.
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.rJPLICANT
iI]I-N
LDAL INCORPORATEI)
]i] BOX 666, BROADWAY
KONG
-.I\G
N AccoRDANCE WITII INSTRUCTIoNs REcEIvED FRoM THE DOWNTOWN BANK & TRUST CO. WE EEREBY ISSUE IN YOUR FAVOUR A
DOCUMENTARY CREDIT FOR GBP4106 IFOUR THOUSAND ONE EUNDRED AND SIX POUNDS STERLINGI
AVAILABLE BY YOUR DRAFTS
!T SIGET
iDR lOO% CIF
INVOICE VALUE ACCOMPANIED BY TEE FOLLOWING DOCUMENTS: .
1I
SIGNED INVOICE IN TRIPLICATE
2l
FULL SET OF CLEAN ON BOARD sHrppING COMPANY'S BILLS OF I-ADING MADE OUT TO ORDER AND BLANK ENDORSED. MAR(ED
"FREIGIIT PAID" AND "NOTIFY WOLDAL INC., PO BOX 666, BROADWAY, IIONG KONG''
INSURANCE pOLICy OR CERTIFICATE IN DUPLICATE, COVERING MARINE AND WAR IUSKS UP TO BUYER'S WAREHOUSE. FOR
3)
INvoIcE VALUE oF THE GooDs PLUS 10Zo
COVERING TEE FOLLOWII{G GOOI'S: .
4OO ELECTRIC POWER DRILLS
To BE SEIPPED FROM
!{OT LATER TEAIV
PARTSEIPMENT
EONGKONGCIF
TO
LoNDoN
1OTH AUGUST 2OO2
TRANSEIPMEI{T
NoTPERMITTEI)
TEIS CREI,IT IS AVAILABLE
FOR
PRESENTATION TO US
UI{TIL
NOTPERMITTED
3lSTAUGUST2OO2
DOCUMENTS TO BE PRESENTED WITIIIN 21 DAYS OF SHIPMENT BUT WITHIN CREDIT VALIDITY.
DRAFTs DRAWN HEREUNDER MUsr BE MABKED "DRAWN UNDER BARGLAys BANK PLC LoNDoN T.S.C. CREDIT NUMBER El\1Dc70844
WE UNDERTAI(E THAT DRAFTS AND DOCUMENTS DRAWN UNDER AND IN STRICT CONFORMITY WITE TEE TERMS OF TEIS CREDIT WILL
BE HONOURED.
UNLEss 6TEERWISE STIPULATED ALL DoCUMENTS SEoULD BE ISSUED IN TEE ENGLISH LANGUAGE OTEERWISE THEY MAY BE DISREGARDED.
THIS CREDIT Is SUBJEcT To THE UNIFoRM CusToMs AND PRACTICE FoR DocUMENTARY CREDITS (1993 REvrsroNl,
NUMBER 5OO
Who will receivethe
money?
W hichdocume ntsare
i nvolvedbesidesthe
letterof credit?
3 W hat s pec ialc laus e
is mentionedin the
insurancepolicy?
4 Cant hegoods be
movedfrom one ship
to another?
ICC PUBLIcATIoN
5 What isthe valueof
the credit?
8 Who openedthe
letterof credit?
6 When isthe letterof
creditvalid until?
9 Cantheexporters
s h i p t h ec o n s i g n m e n t
in differentlots?
7 W ho i s t h e i s s u i n g
bank?
l0 What does
the consignment
consistof?
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Fromthe exportcrs
to the confirming
bank
now
DeltaComputers
acknowledge
Eastland
Bank'sletter,andsend
themthedocuments
for andtheir
theyasked
draft.
DeltrComput.rsLtd
BradieldEst.rte
Road
B.adfield
We l l i n g b o r o u g h
Northam ptonshire
N N 84H e
YorrrRef
OurRef
Tcl ephonc+44 @n933 1643t/ z l 3/ a
Fex +44 (o)r9j i rc'orrr
15/5120NS/OM
E mai l mi l l arj G'rl nl tacom
w w w .del ta com
24May2O-
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MrP.Medway
EastlandBank plc
40lAldgate
london EC12DN
DearMrMedway
ul
Thank you for your adviceof 15May. We have now effected shipment to our
customersin New Zealandand enclosethe shipping documentsyou asked
for and our druftfor L23,lO0which includes your discount, commission,and
charges.
Will you pleaseacceptthe draft and remit the proceedsto our account at the
MainlandBank, Oxford Street,LondonWlA 1AA.
Yourssincerely
..
t.l
N'. ^tttffil.t
N.Smith
SeniorShippingClerk
Enc.Bill of lading (3 copies)
CommercialinvoiceCIFWellington (2copies)
AR Insurance certiflcate for L24.2OO
Draft2152/J
Feg E ngl and
r83r7r3
v Ar 241962114
162
tr
Send
UA
xha
-l 10 -
Arial
Fromthe exporters
to the importers
e0
DeltaComputers
notify
N .Z.B usi ness
Mach ines
thattheconsignment
is
on itswavto them.
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I vicnaetTanner
I
SniOment
of yourorderNo.8815
DearMr Tanner
ltt
The aboveorderhas beenshippedcleanaboardthe NorthernCross,
due in Wellington
12 Ju ne.
The shippingdocumentshavebeenpassedto the EastlandBank,London,and will be
forwardedto the NewZealandBank,Wellington,
who willadviseyou.
xq,
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As agreedwe havedrawnon the EastlandBankat sixtydaysaftersightfor the netamountof
(twentythreethousand,one hundredpoundssterling)whichincludesthe bank's
f 23,'100.00
discount,commission,
and charges.
Ne i l Sm it h
Se n i o rS hippingCler k
DeltaComputersLtd
We l l i ngbor ough,
NN84H B,U K
Tel.:+44 (0)193316431121314
Fax:+44 (0)l 933 20016
Email:smithn@delta.com
1 When isthe
consignmentlikely
to arrivein New
Z ealan d?
2 What has happened
t ot he s hipping
documents?
I How hasthe Eastland
Bankearnedmoney
on the transaction?
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Fromthe
importers'bankto
the importers
TheNewZealand
Bank
N.Z.
nowadvises
Machines
that
Business
theiraccount
hasbeen
debited,
andthatthe
documents
arereadyfor
hehas
collection.When
Mr
the documents,
Ta n ner will
beablet o
takedeliveryofthe
computers.
MichaelTanner
DeltaComputers
DearMrTanner
Bank,London,accepted
In accordance
withyourinstructions
of 3 May,ouragents,Eastland
a draftforf23,100 drawnby DeltaComputers
Ltdon presentation
of shippingdocuments
for
a consignment
sentto youon 24 May.
Wehavedebitedyouraccountwiththeamountplusourchargesof $NZ350.Thedocuments
arenowwithusandwillbe handedto youwhenyoucall.
lanClose
NewZealandBank
t 54
Adocumentary
credittransaction2
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Arial
Fromthe
importersto the
exporters
T h i se m a i l , f r o mt h e
im porters,International
Boats,in Londonto the
exporters,Lee
Boatbuilders,
in Hong
Kong,isthe first stepin
our secondexamoleof a
documentarycredit
transaction.Notethat
lnternationalBoatsask
for a certificateof origin,
which they needsince
they intendto re-export
the dinghiesto France,
which is an eu country.
Notealsothat they will
usetheir bank'sagentsthe confirmingbank-to
verifythe qualityof the
boats.
.li:,li:,rl:.i,,r:,ll,l:,,iilll
ii utiiiruiiii.uti,ii.ut'i:i,r:i:
utliiutl'
lii:lll:ii.ut:ii
OrderNo.90103
De a rMr Lee
We metyourrepresentative,
Mr TomChai,at the EarlsCourtBoatShowin Londonlastweek,
and he showedus a numberof yourdinghies,and informedus of yourtermsand conditions.
We were impressedby the boats,and havedecidedto placea trial orderfor ten of your craft,
CatalogueNo.NR 17.fhe attachedorder,No.90103,is for deliveryas soonas possible.
As Mr Chaiassuredus thatyou couldmeetany orderfromstock,we haveinstructedour
bank,NorthernCityLtd,to opena confirmedirrevocable
letterof creditfor f 10,300in your
favou[andvaliduntil1 June20-.
31
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Our bankinformsus thatthe creditwillbe confirmedby theiragents,Cooper& DealMerchant
Bank,PekinRoad,HongKong,onceyou havecontactedthem.Theywillalsosupplyus witha
certificate
of qualitywhenyou haveinformedthemthatthe orderhas beenmadeup and they
haveinsoectedit.
Youmay drawon the agentsfor the fullamountof the invoiceat 60 days,and yourdraft
shouldbe presentedwiththe followingdocuments:
Six copiesof the billof lading
Fivecopiesof the commercialinvoice,CIF London
Insurancecertificate
for t10,540 (A.R.)
Certificate
of origin
Certificate
of quality
The creditwillcoverthe invoice,discounting,
and any otherbankcharges.Pleasecableus
confirmingthatthe orderhas beenacceptedand the dinghiescan be deliveredwithinthe next
six weeks.
Regards
AndyValour
International
BoatsLtd
v!
165,
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Fronn
the exporters
to the importers
Dock23,Mainway
HongKong
Telephone
+852385t62
Fax+852 662553
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NorthernCity,who
a re lnternationalBoats'
bankers,havenow
notifiedtheir agentsin
Hong Kong,Cooper&
Deal,wh oh avein tu rn
advisedLeeBoatbuilders
that the creditis
Mea nwh ile
availab le.
have
LeeBoatbuilders
emailedlnternational
Boatsconfirmingthat
they haveacceptedthe
orderand can deliver
within six weeks.They
follow this by sendinga
fax,advisingshipment.
Focsimilc
lee Bootbuilders
Ltd
From J.Lee
To Andy Valour,International BoatsLtd,London
Fax +44(0)2088344431,
SubjectYourorderNo.90103
Date 6May20Noofpages2
ul
DearMr Valour
OrderNo.90103
We arepleasedto inform you that the aboveorderhasbeenloadedon to the
MV Orfent,which sailstomorrow and is due in Tilbury on 3 June.
The dinghiesand their equipmenthavebeenpackedin polystyreneboxes
in ten separatewooden cratesmarked1-10,and bearingour brand ^4.
The shipping documents(seelist attached)havebeenhandedto Cooper&
Deai,Hong Kong,with our draft for f 10,300at 60 D/S.This coversall charges
and discounting.Cooper& Dealwill forward the documentsto Northern
City Bank,who will adviseyou within the next few weeks.
We have supplied the certificate of origin that you askedfor. However,we
wonderedif this was for re-exportingpurposes?We shouldpoint out that
your customerswould only be coveredby the guarantee if the boats are not
modified in any way,asthis would be outsidethe guarantee'sterms.
Pleaseconfirm delivery when you receivethe consignment.
Thankyou for your order,and we hope you will contactus again in the
future.
Yourssincerelv
JohnLu,
JohnLee
Director
Whe n is th e
consignmentlikelyto
arrivein London?
Ot4
166
How havethe
dinghiesbeen
packed?
What does6opls
mean ?
Who areCooper&
Deal,andwhat role
do they playin the
tra nsaction?
W hat willt he
NorthernCityBank
adviseInternational
Boats?
o Wh a t s h i p p i n g
document(apart
from the bill of
lading,commercial
invoice,and
i nsurancecertificate)
do International
Boatsrequire?
Whatrestrictions
do
put
LeeBoatBuilders
ontheirguarantee?
Whichwords in the
fax havea similar
m e a n i n gt o t he
following?
a s m a l l o p e nb o a t
b provided
c warranTy
d altered
Pointsto remember
E a n k r i n th e U X
Therearevarioustypes of bank in the UK
which ofier a wide range of banking facilities
for domesticcustomers,businesses,
and
internationaltrade.
E
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I nte rn a ti o n a l b a n k i n g
1 Thetwo main methodsusedin settling
accountsin international trade arebills of
exchangeand documentarycredits.These
involvebanksin both the importers'and the
exporters'countries.
9
2 Bills of exchangecan be at sight,i.e.payable
on presentation,orafter sighf,i.e.payableat
a stipulateddatein the future. The exporters
can sendthe bill to the importersdirect,or to
their bank with the documents,and will
obtain either payment on presentationor
acceptanceagainstthe bill.
3 The advantagesofbills of exchangearethat
exporterscan get the money immediately if
the bill is discounted,and importerscan
obtain credit if the bill is not a sight draft.
The disadvantagesarethat a bill ofexchange
may be dishonoured,and it is relatively easy
to cancelan order.
4 A confirmed irrevocabledocumentary credit
cannotbe cancelled,and the importers'bank
and its agentguaranteepayment.With
discountingfacilities,exportersdo not have
to wait for their money if the bank agrees
that they can draw againstthe credit.
Importersareprotectedby the shipping
documents,e.g.a certificateof inspection.
r67
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169
TY P E 5o F A G E N G Y
169
169
169
169
17o
17o
17o
Brokers
houses
Confirming
Exportmanagers
Factors
Distributors
Commercialagents
Buyingagents
17O
FI N D I N G A N A G E N T
17o Opening
17o Explainingwhatyouwant
17o Closing
171
OFFE R TN G A N A GE N C Y
171
171
171
171
172
172
172
172
172
172
173
Opening
Convincingtheprospectiveagent
Soleor exclusive
agency
Areato becovered
Commission
Settlementof accounts
Supportfromthe principal
Delivery
Durationofthe contract
Disagreements
anddisputes
Delcredereagents
173
AS K T N GF O RA N A G E N C Y
17)
173
173
ExAlrPrEs 174
175
176
177
178
179
r8o
t8t
r8z
r83
r84
Opening
Convincingthe
manufacturer
terms
Suggesting
Offerofanagency
Agent'sreply,askingfor moredetails
Manufacturer's
reply,givingrnoredetailr
Replyto an offerof an agency
Requestforanagency
Replyto a requestfor an agensy
Offerfrom a buyingagent
Replyto a buyingagent'soffer
Agent'rreport
Accountsales
Pointsto remember
T Y P ESOF AGE N C Y
€onfirminghouses
AcENrs and AGENcIx s usuallyrepresent
companies.There
are many kinds of
representation,but in this unit we deal mainly
with buying and selling agencies.However,it
is usefulto look aswell at other areaswhere
companiesact on behalf of their clients,as
thesewill be referredto later.
Cowrrranruc Housn s receiveordersfrom
placethem, and arrangefor packing,
overseas,
shipment,and insurance.They sometimes
f.nanceor purchasethe goodsthemselves,
then resellthem to the client.Theymay act oN
coMMrssroNbut
, i f buyi ngoN rH E rRow N
Ac c ou Nr will make a profit on the difference
between the ex-works price (the price from the
factory) and the resaleprice they quote the
importer.
Brokers
Bnorr ns usuallybuy or sellgoodsfor thelr
pRINcInALS(thecompaniesthey represent)
but rarely handlethe consignments
themselves.Therearevarioustypes of broker:
- Brokers/ aEALERIon a srocK Er:HANGE
buy and sellsharesfor their clients.The
clientsaskthe brokerto buy or sell sharesfor
them, and the brokertakesa commissionon
the purchaseor sale.
- Shipbrokers
arrangefor shipsto transport
goodsfor their clients.They operatefrom
their offices,or on the BalticExchangeor one
of its branches.> Seepagesr9?-r99 for more
on this topic.
- InsurancebrokersarrangeinsurancecovER
with urpr nwnrrr ns,who pay
compensationin the eventof a loss.
>Seepageszzz-z3gtor moreon this topic.
- Commoditlrbrokersbuyand sellbulk
commodities,e.g.cocoa,tea,coffee,and
rubberonthe coMMoDITYMARKnrson
behalf of their clients.Metal brokersdo the
sameon the Metal Exchange.
Thereare other exchangeswhere companies
usebrokersto representthem, either because
the companydoesnot havemembershipof
that exchange,or they want to usethe broker's
specializedknowledgeof the market.
Buyers,sellers,andbrokerscommunicateby
meansof telephone,email,cable,or fax as
prices in the markets tend to fluctuate quickly
- evenby the minute in the caseof bullion and
foreign currency.
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E rport manatert
If a companydoesnot havea branch in the
country it is exportingto, they can appoint an
export manager,who will deal under their
own name but usethe addressof the company
represented.The exportmanager'sjob is
primarily to developthe market for the
exporter,and managersmay chargea fee for
this serviceor arrangefor a proflt-sharing
schemewith the exporter.
Factors
Facron s can buy and sell or.rrHr tn owrrt
AccouNT (i e.intheir ornmnames),receive
payment,and sendaccountsto their
principals They often representcompanies
exporting fruit or vegetables.
Facronrrvc is the processwherebya
companybuys the outstandinginvoicesof a
manufacturer'scustomers,keepsthe accounts,
andthen obtainspayment.NoN-REcouRsE
lAcroRrNG involvesthe buying up of
outstandinginvoicesand claiming the debts.
If the buyer (the manufacturer's customer)
goesbankrupt,the factor has no claim.In
REcouRsErecronrrc, the factorwill claim
from the manufacturerlf the customercannot
pay.
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[)r\1r rr)r]r ( )r..
Drsrnr suror s buy goodsfrom an exporter
then sellthem on their own accountfor a
nrnfil-ThperkTznf4gsofthisisthatthe
sxporter has only one customer in that market
possi bl etermsforthei rpri nci pal
s,
andwillt
ry
to flnd the most competitiveratesin shipping
and insurancefor them. Buying housesoften
act on behalf of large stores.
Theorderssenttobuyingagentsarecalled
INDE Nrs and are of two types: oer r
h0
10
b e c a re fu l i n s e l e c ti n g d i s tri butorsi norderto
ensurethe best sales.
A distributor is expectedto keepthe
exporterinformed about the market snrt nn+
to sellproductswhich competewith the
exporter's.Distributorsare alsoexpectedto
havea network in the area,providetraining for
technicalstaff,and supply after-salesservice
whenandwherenecessary.Anexportermight
make enquiriesabout a distributor before
signinga contract.
T h e e x p o rte rw i l l re fe ral l enqui ri estothe
distributor,supply conditionsof saleto
distributorsand their customers,ofier
promotionai material,and provide
rNDEMNrrrEs(insurance)
for guaranteeson
the goodsthe distributorsells.
suppl i er,andcl osE D orspE crrrcrN DENr s,
where the supplieris named bythe principal.
L , r ,' rt ri rr .rp l t-:l rr' ,
Tel i theorgani zati onw hoyouare'
- Wearea largemanufacturingcompany
speci al i zi ngi n...
-W eareoneofthel eadi ngproducersof
...
- Youprobablyassociateour name with the
manufactureof chemicals/ textiles/ busines:
machines/ furniture ...
An o th e rn a me fo ra c o M M E R crA LA GE N Ti s
a c o MMIS SIo na c l x r.A c ommerci al agent
nevertakestitle to the goods,i.e.neverowns
them like a distributor,but is the intermediary
or'middleman'between the exporterand the
customers.
co m m e r cia la g e n tsr e p r e se nta
manufacturer,obtaining goodsand then
resellingthem. They may buy the goodsfrom
the manufactureron consignment:this means
that they do not own the goodsbut sellthem
on for a commission.Commercialagentscan
be solr or ExcLUSIVEacnrrrrs,i e the only
agentallowedto sella particularmanufacturer's
productsin a specifledcountry or area.
FIN D IN G A N A GE N T
It is possibleto find an agentthrough
the internet, or by advertisingin rnaor
ro URNALS.Othermethods includecontacting
governmentDErARTMENTS
oF TRADEinyour
own country or the country you wish to export
to,or consultingcHaune ns oF coMMERcE,
coN S U LA TE S ,TR A D E A S S ocTA TToNS, oT
banks.The guide below providessome
suggestionsfor ways of dealingwith this kind
of correspondence.
( rl ,, r i rt, ,
Ir1r1,11f1 ,,
!,i l ].rt,,rri i
t.. rl t
- Weare lookingfor an agentwho can
representus in . ..
- Wewouldlike to appoint a soleagent in
Taiwanto act on our behalfselling. .
- Ouraim isto identiJyan established
compd-.,
who can representus. .
( - l ( ) \tl l .'
l l r' t
1 ' r rrr"
Bu v rw c AGE N rs ,o rBU y rN GH ousrs,buy
goodson behalf of a principal and receivea
commission.They are employedto get the best
170
cl osebysayi ngthatyouw oul dbegrat ef ulf c:
anyhel p.
- Wewould begrateful if you couldsupplytis
with a list of possibleagents
- Wehopeyou canhelp us,and lookforwardto
hearingfromyou.
- Thankyou in advancefor your help.Welook
forward to receivingyour recommendations.
O F F E R IN GAN AGE N C Y
Onceyou haveobtainedthe namesand
addressesof prospectiveagents,you canwrite
to them direct.Belowis a guidefor
manufacturers offering terms to a prospective
ageru.
O pe n i n g
Tellthe agenthow you obtainedtheir name.
- Youwererecommendedto us by the Saudi
TradeCommissionin London.
- Mr Eric Stolemanof the SwissExport
Departmenthastold us that .. .
Explainwho you are.
- Wearean establishedcompany
manufacturing...
- Weare the leadingexportersof ...
- Weareone of the main producersof
chemicals/ textiles/ businessmachines/
furniture ...
Con v i n c i n g th e p ro rp e c ti v e a g ent
Convincethe agent that the products you
make are worth handling and will sell in their
market.
- YouwiII seefrom our cataloguethat we offer
productswhich
a wide rangeof well-designed
are hardwearing,Iight,
easyto use,andfully
guaranteedfor oneyear.
- Ourpricesareextremelycompetitivefor a
product of this quality.Our researchshowsus
that thereis a growing demandfor this
productin your country,and we aresurethat
onceour brand is establishedit will becomea
market-Ieader.
- TheZenithzooo is the resultof manyyears'
researchand development,and we are
confdent that it wiII quicklyovertakesalesof
the competingbrandsat presentavailablein
the Swedishmarket.
S ol e or excl uJi ve agen(y
GI
o
I
- Wewill not restrictthe agent by offeringa
soleagencyaswe havefound that this limits
our own salesand,in addition,issometimes
awkwardforthe agent.
- Weare offering an exclusiveagency,
ensuring that you wiII not havecompetition
from other agentsoperatinginthe area
specife d in the contract.
- Wecannotofferan exclusiveagencyfor
Austria at present.However,if the agencyis
successful,
we may reconsiderthe situation in
thefuture.
!,
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10
It shouldbe establishedwhether you are going
to dealwith your agenton a coNsrGNMxNr
sas r s,when the agentwill not own the
productsyou sendbut will sellthem for a
commission,or whether you want to supply
the agent as a distributor to re-sellto
customerson their own account.in which case
the agentwill decideon resalepricesand take
the profitsfrom the sales.
- Generally,we
do not dealon a consignment
preferour agentsto buyour
basis,but
productsontheir own accountTheyusually
prefer this methodas it provesmore
proftablefor them and allowsthem greater
freedomin determiningprices
Notethat the useof the wordgenerallyinthe
aboveexampleleavesthe offer opento
negotiation.
A rer to be covered
Make it clearwhat areathe agencyis for.
- Youwill havesoledistribution rightsfor the
whole of France,which wiII giveyou an
excellentopportunillrto establisha highly
proftable market.
- Initially,we will giveyou a soleagencyfor the
Lazioregion,but if salesaresuccessful,
we will
extendthat to other regions.
- As exclusive
agentsyouwillhaveno
competitionin Northern Germany,therefore
with efectivesellingyou shouldbe
auaranteeda substantialreturn.
171
o
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@
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10
C o rn rrrrSs ro rr
D r'l tvt'r y
Somefirms offerterms straight away in an
initial enquiry while others wait until they
havehad a replyfromthe prospectiveagent.
When offeringterms,you shouldmake them
soundas inviting aspossible.
- Theagencyweare ofreringwiII beon a
commission
basis,and aswearevery
interestedin getting into the Frenchmarket,
we arepreparedto ofrer5%, plus a
substantialadvertisingallowance.
- As this wiII bea soleagency,we areprepared
to ofer a generouscommissionas
compensation,
and a reasonableallowance
expenses.
for
- As aninducementtotheagentweappoint,we
wiIIbeofferinga n% commissionon netprices.
Exportersshould always allow sometime for
unforeseenproblemscausedby delays,public
holidays,etc.It is alwaysbestto quote a
realisticdeliverytime.
- Providingthereare no unforeseendelays,we
wiII beable to deliverwithin sixweeksfrom
receiptof order.
- Wewouldlikeyouto maintainadequate
stocksof our threemain ranges,bearingin
mind that we wiII beableto deliverbetween
two andfourweeksof receivingorders.
- Deliveryshouldnot take longerthan three
weeksif we havethe itemsin stock.
5 t' ttl t' rrtl rrt c tt .rrc l r r rt' .
- Ordersshouldbesentto us directfor
shipment,and we will arrangefor customers
to pay us Youmay issueus with quarterly/
monthly statementsof account,which will be
paid by sightdraft at the bank oJyourchoice
- Customers
shouldpay usdirecton eachsale
by letteroJcredit,and we wiII remityour
commission
by bill on submission
of your
monthly / quarterlyaccount.Creditis not to
be offeredwithout our expressconsent.
5 L r llPe r l
ttcr tr t tltt' p r t ;111111.,1
Prospectiveagentswill want to know what
support you will give them in their efforts to
sellyour products.
- Ourproductscarrya one-yearguaranteeand
wewiII replaceanyfaulty item carriagepaid.
- As you know,our company offersafull aftersalesservice,whichis essentialin establishing
the reputationof our brands,andyour
customersneedhaveno worriesabout spare
parts or maintenance.
- Wecan offeryou additional expenses
of
tt5,ooo per annumJoradvertising.ThiswiII
be reviewedafter a year and increasedif we
think saleswarrant it.
172
L)ur.rti onof tl rt corrtr,rtt
Thelength of time for the contractis usually
discussedafterthe agencyhasbeenagreed.
- ThecontractwiII befrom t Marchfor one
year,and providedbothpartiesagree,wiII be
renewedforafurther year in 2o-.
- Wefeelthatninemonthsshouldbeenough
time to decidewhetherthis arrangementis
likelyto besuccessful,
and will draw up the
contract
accordingly.
frst
- Subjectto our mutualagreement,the
contract w ill be renewed annuallv.
l
",,i ,.,.rrtl nt
s .l rti
ri t,,1l Ltt,.s
Provisionis usually madefor disagreements
and disputes.This,too,would not appearin an
initial letter,but in correspondence
confirming
the agency,and,of course,in the contract.
- In the caseoJdisagreementoverconditionsc,
payments,the matter wiII besettledby
arbitration.
- Weagreethat disputesovercontractsshould
bedecidedaccordingto Americanlaw.
Note:annrrnATroN is when a neutral
organizationsettlesproblemsbetweenthe
principal and agent.A chamberof commerce
or trade associationoften actsas arbitrator.
Del c re d e re a g e n ts
DEr cnEprnr AGENTSguaranteeacustomer's
debt'del credere'(in the beliefthat) the
customer can pay the exporter.In other words,
if the customer cannot pay the exporter,the
agent is responsiblefor the debt.Forthis
guarantee,the agent is paid a prr cREDxRx
C O M MISSION.
- Wearepreparedto ofreran additional25%
del crederecommissionif you arewilling to
guarantee custome
rs'debts.
- In additiontothen% commission
on net
sales,wewill offerafurther 3%del credere
commissionif you arewilling to deposit
f,to,oooasa securityto guaranteeaII
customers'debts.
A S K I N G F O R AN A G E N C Y
Belowis a guideto correspondence
when
offering to act as a manufacturer's agent.
O pen i n g
Explain who you are and how you found out
about the manufacturer's product.
- Youwererecommendedto us by our
associates,
LindusProductsLtd,of Lagos,who
told us that you werelookingJor an agentto
representyou in Nigeria.
- Weare contactingsuppliersof medical
equipmentinyour countrywith aviewto
actingas their representatives
herein Saudi
Arabia.Yourname wasgiven to us by the
British Consulin leddah.Wealreadyimport
medicalsuppliesfroma numberof diferent
countries,butareparticularly interestedin
you
the nno machinesand scanners
manufacture.
Conv i n c i n g th e ma n u fa (tu re t
Youneed to convincethe manufacturer that
there is a market for their product in your
country or area,and that you are the best
personto developit.
- Asyou know,Germanyis extendingits
Jarmingareaswiththeaidof nv grantsto
farmers. Wehavemany contactsin the
governmentwhowill directus to large-scale
farms and enterpriseswhich are in the market
for your products.
- Because
we havealreadyestablishedbusiness
relationshipswith hospitalsand clinicsin
SaudiArabia,we areconfidentthat we arethe
bestcompanyto representyou. The
developmentof the healthservicemeansthat
generousgra.ntsto clinicsand hospitalshave
increasedthedemandfor the type of
equipmentthat you manufacture.
0Q
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S uggesti ng terms
You may want to leavediscussionof terms
until you know that the principal is interested
in your request.But there is no harm, evenin
an initial enquiry in describingthe terms on
which you normally operateand askingif they
would be acceptable.
- May we suggestthe termson which we
usuallyoperateto giveyou an ideaofthe sort
of agencycontractwe havein mind?We
generallyrepresent
ourprincipalsas
iv
ibut
or
exclus e distr
sfo r Ger many,buying
productson our own account,wtth an initial
contractrunningfor oneyear,renewableby
mutual agreement.Weexpectmanufacturers
to offeradvertisingsupportin theform of
- in Germanand English- and
brochures
catalogues,
and in return wepromiseour
customersafull after-salesserviceandtwoyear guaranteeson all products.Therefore,we
would expectafrst-classspare-partsservice
with deliveryforbothproductsand spare
parts within six weeksof receiptof order.We
wouldpay you directby 4o-day biII of
exchange,documentsagainstacceptance.
Ifthis type of agencyinterestsyou, please
contactus sothat we can draw up a draft
aqreement.
173
.g
E
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tr
G
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t
o
Offerof an aBen(y
Clgtnlt.rrl
'Bririslr
MrJ ay des c r ibes
his
company,
theirproducts,
andthe typeof agency
he isoffering.Notehow
he'sells'the
agency.
\;vJ
r*-\r
@
CLAZIER
I{(,I',5E
CRTIN
tANE
DF9[]Y
DTI
]RI
tEL t P r{oN E :+44 (o)r 112 4579o FA csrM|' n *..ii (o)r332 S l g7l
r1n,r,f3l6grn rvw ut bri l i chrrygtrl com
E rnai l :i a',.r'r
4 May 20S.A.ImportersLtd
AIManniWay
Riyadh
SAUDIARABIA
10
o
g
o
DearSirs
A
E
a!
Mr MohamedA1Wazi,of the SaudiArabian TradeCommissionin London,
informed us that you may be interested in acting as our agent in your
country.
x
ut
As you will seefrom the enclosedcatalogue,we are manufacturers of highquality glasswareWeproduce a wide selectionof products from moderately
pricedtablewarein toughenedsmokedglassto ornate Scandinavianand
Japanesedesignedlight coverings.
We alreadyexport to North and SouthAmericaand the FarEast,and would
now like to expandinto the Middle Easternmarket,where we know there is
an increasingdemandfor our products.
The type of agencywe are looking for will be able to coverthe whole of
SaudiArabia.We are offeringaTO%commissionon net list prices,plus
advertisingsupport.Therewould be an additional 2.5%del credere
commissionif the agent is willing to guaranteethe customer'saccounts,
and he may offer generouscredit terms oncewe have approvedthe
account.
This is a unique opportunity for someoneto start in an expandingmarket
and grow with it. Therefore,ifyou believe you havethe resourcesto handle
a soleagency covering the areamentioned, and feel that you can develop
this market,pleasewrite to us as soonaspossible.
Yoursfaithfully
Nk^h,o/ar/,eu
t
NicholasJay
Managing Director
Enc.Catalogue
c
.9
a)
t
c/
r74
Whorecommended
the agency
to British
Crystal?
What commissions
couldthe prospective
agentearn?
WheredoesBritish
Crystalexportto at
present?
Are BritishCrystal
offeringthe
ptospectiveagent
anyaddit ionalhelp?
Whatmusthappen
I Whichwordsin the
beforethe agentcan
letterhavea similar
offergoodcredit
to the
meani ng
termsto customers?
following?
a toget bigger
W hatdoyouthi nkMr
b range
Jaymeansby
<
speci al
'resources
to handlea
soleagency'?
El
Agent'sreply,
askingfor more
details
S en d
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NicholasJay
10
Jear Mr Jay
-nank you for your letterof 4 May in which you offeredus a sole agencyfor your productsin
SaudiArabia.
=irst,let me say that we can handlean agencyof the type you describe,and we agreethe
:emand for good qualitychinawareis increasinghere.Howevel beforewe can takeyour offer
-urtherwe needthe followinginformation:
m
xt
3
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3
q,
1. Paymentof accounts.Wouldcustomerspay you directin the UK, or wouldthey pay us, and
we in turn settlewith you afterdeductingour commission?How would paymentbe
arranged?Billof exchange,lefterof credit,or bank draft?
2. Delivery.Wouldwe hold stock or wouldyou supplycustomersdirect?lf you supplydirect,
how longwould it take for an orderto be made up and shippedonce it had been received?
3. Advertising.You mentionedthat you would helpwith advertising.Couldyou give us more
details?
4. Disputes.lf a disagreementarisesoverthe terms of the contract,who would be referredto
in arbitration?
5. Lengthof contract.How longwould the initialcontractrun? In our view threeyearswould
allow us to estimatethe size of the market.
lf you can send us this information,and possiblyenclosea draftcontract,we couldgiveyou
our answerwithinthe nextfew weeks.
MohamedKassim
Director
S.A. lmportersLtd
Riyadh
Tel:(+966;135669
Fax:(+96611 34981
m.kassim@saimp.co.sa
I Whatsortof agency
is BritishCrystal
offering?
lsMr Kassim
confident
about
selling
Bri ti s h
products
Crystal's
in hiscountry?
Doeshesuggesta
methodof payment?
4 H o w l ongdoes
he
want the agencyto
ru n ?
5 What isa draJt
contract?
5 Whichwordsin the
emai have
l
a si mi l ar
meani ng
to the
following?
a subtracting
b argument
c first
rO
tr
TD
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5
Q'
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6
tr
o
oo
Manufacturer's
rcply,givingmore
details
Mr Jayprovides
the
information
Mr Kassim
asked
for,andencloses
a
draftcontract.
C LA ZIE RH OU S E .C R E E NLA N E .D E R B YD E l 1R T
T ELE pH oN E :+44 (o)r312 4579o. FA csrMrLE :+44 @)t332 5t977
E mai l :j ayn@crystaI com . w w w .bri ti shcrystaI com
6 June 20-
10
MrM.K a s si m
S.A.ImportersLtd
AlManniWay
Riyadh
SAUDIARABIA
o
.9,
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t!
DearMrKassim
x
II
Thank you for your email. As you requested,we enclosea draft contract for
the agencyagreement.
Youwill seethat we preferour customersto pay us direct,and usually deal
on a letter of credit basis.
You would not be required to hold a large stock of our products,only a
representativeselectionof samples.We can meet ordersfrom the Middle
Eastwithin four weeks of receipt.
Advertising Ieaflets and brochureswould be sent to you, but we would also
allow f 2000 in the flrst year for publicitl4 which could be spent on the type
of advertising you think most suitable for your market. In our other markets
we have found that newspapersand magazinesare generallythe best
media.
The initial contract would be for one year,subject to renewal by mutual
agreement.Disputeswould be settledwith referenceto EUlaw.
If you have any further questions with regardto the contract,or anything
else,pleasecontactme.
I look forward to hearing from you.
Yourssincerely
Nkh"o/"a.rtay
J/
NicholasJay
Managing Director
Enc.Draft contract
E1
.9
o
5
o
Howwould
payBritish
customers
Crystal?
Wouldcustomers
be
suppliedfrom 5.A.
lmporters'
warehouse?
Whatsortof
advertising
material
doesMr Jayoffer?
176
4 H ow l ongw oul dthe
runinitially?
agency
5 Whatdoesmutuol
agreementmean?
Whichwordsin the
letterhavea similar
meani ng
to the
following?
a typical
b fulfil
c dependi ngon
Replyto an offer
of an agency
0q
|D
5
5
Allison & Locke
Irnporters Ltd.
Ro o m s zr - 2 8
Ro th e r m e d e Ho u se
F e stp :te Str e e t
T el ephone+44(o)2o7636 9o1ol rl 2/314
F ax +44 b)zo 786 gzTt
F mni l mal l i son@al l ock co uk
London
Cable ettoc:< London
r_frc1 IAR
Thisletteris a replyto an
offer of an agency,but
the prospective
agent is
askingfor the termsto
be changed.
o,
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o
17October20SrF.Iglasis
IglasisLeatherManufacturing SA
EnriqueGranados109
Barcelona
Spain
10
ttt
x!J
3
DearSrIglasis
T'
o
We are interestedin the offer you made to us in your letter of 8 Octoberto
act as soleagentsfor your leather goodsin this country.
o
6-
While we agreethat there is a steady demand for high-quality leather cases
and bagshere,in our opinion the annual turnover you suggestis too
optimistic. We estimate that half the figure you quoted would be more
realistic.In view of this, the 6% commissionyou offer is rather low, and we
would expect a minimum of 10%on net invoice totals.
With regardto payments,we feel it would be preferablefor customersto
settle with us direct, and we would remit quarterly account salesdeducting
our commission.However,we are preparedto leavethis matter open for
discussion.
FinaIIy,we would be willing to hold the stockyou suggest,but if there is a
rush of orders,asthere may be now we are nearing Christmas,you would
needto shortenthe deliverydateyou quotedfrom six weeksto three weeks
from receiptof order.
If theseconditionsare acceptable,
then we would be pleasedto take on an
initial one-yearcontractto act asyour soleagents.
I iook forward to hearing from you.
Yourssincerely
M. AL'.;..r0r,,,
M.Allison(Mr)
Director
D 'e.'.
I€: i '.
s i '! Al l r s on B Lo:'E
l .r r i or
8o7o?l
i' AT i \'c 2?2 515573
Whatsortof agency
is5r lglasis
offering?
Whyd o eMrA
s
llis on
t hinka si xp e rc ent
commission
israther
low?
Which matter is he
preparedto
negotiate?
Why might delivery
datesbe a problem?
How longwould the
initialcontractrun?
lf you were Sr lglasis,
what concessions
do
you thinkyou could
maketo meet Mr
Allison'sterms?
? Whichwords in the
letter havea similar
m e a n i n gt o t h e
following?
a the leastamount
r sendmoney
; reduce
o
5
177
6
Requestfor an
agency
|!
Inthisemail,Brian
Glough,Directorof a
retail
Britishmotorcycle
isas k ing
an
ch ain,
Americanmotorcycle
manufacturer,HartleyMasonInc.,if hecan
represent
themin the
UK.Mr Gloughdescribes
hiscompany,tells
Mr
Masonwherehesawhis
product,convinces
him
that thereisa market,
terms.
andsuggests
o
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5
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10
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o
sg
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t!
x
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JackMason
DearMr Mason
in
Wearea largemotorcycle
retailchainwithoutletsthroughout
theUK,andareinterested
your
theheavytouringbikesdisplayed
on
standat theMilanTradeFairrecently.
Thereis an increasing
demandhereforthistypeof machine.
Salesof largermachines
have
increased
bymorethan70o/o
inthelasttwoyears,especially
to the30-50agegroup,which
wantsmorepowerful
bikesandcanaffordthem.
Wearelookingfora supplier
whowillofferusan exclusive
commission
agencyto retailheavy
machines.
At presentwe represent
butonlysellmachines
upto
a numberof manufacturers,
600cc,whichwouldnotcompetewithyour750cc,1000cc,
and1200ccmodels.
Weoperateon a 10o/o
3%delcredere
commission
basison netlistprices,withan additional
if required,
commission
andwe estimateyoucouldexpectan annualturnoverin excessof
t2,000,000.Withan advertising
allowance
wecouldprobably
doublethisfigure.
usuallysettlewithusdirect,andwe payourprincipals
on a
Ourcustomers
bybillof exchange
quarterly
basis.
f,
Youcanbesurethatourorganization
wouldofferyoufirst-class
representation
andexcellent
sales,andguarantee
thesuccessof yourproducts
in thiscountry.
I lookforwardto hearingfromyou.
BrianGlough
Director
Glough& BookMotorcycles
Ltd
Nottingham
NG13AA,UK
Tel.+44(0)115 77153
Fax:+44(0)l1548865
Email:b.glough@gloughbook.co.uk
r78
J
Replyto a request
for an agency
gend
Mr Masonisinterested
sal,
i n Mr Gl ough'propo
s
butwouldoreferhimto
actasa distributor.
lfd
- E
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5
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Cc
;
10
Eear Mr Glough
-liank you for your emailof 1 March.We were pleasedto hear of your interestin our heavy
nuringmachines.
R,egarding
the type of agencyyou suggest,I shouldpointout that we neveruse exclusiveor
:cmmissionagenciesas we havefoundthat they tend to be ratherrestrictivebothfor
:urselvesand our customers.We rely on distributorswho buy our productson theirown
accountand then retailthem at marketpricesin theircountry.We offera 30% tradediscount
cff net list pricesand a further5% quantitydiscountfor salesabove$100,000.Our terms of
caymentare 60 D/S bills,D/A if the customercan providetrade references.
m
xo,
3
T'
o
o
3
g.
As far as publicityis concerned,you may be interestedto hearthat we havearrangedfor an
extensivecampaignin Europe.lt beginsnext monthand featuresour heavymachines.We
are sendingdealersthroughoutEuropebrochures,leaflets,and posters,and this will be
followedup by TV advertisingin May.
I hopeyou will be interestedin the terms outlinedhere,and lookfonryardto hearingfrom you.
Bestregards
JackMason
President
Hartley-MasonInc.
Ch i ca g o , lll.
(+1)312818532
Telephone:
Fax:(+1) 312349076
Email:j.
mason@hartley-mason.com
1 Whydoesn't
Hartley-Mason
offer
soleagencies?
2 Whatarethey
p l a n ning
t o do in
Europe?
3 Whataretheirusual
termsof payment?
4 Whichwordsin the
e m a i hl a v ea s i mi l a r
meaning
to the
following?
s el di
l recttothe
p u bl i c
prices
charged
in a
competitive
market
continued
with
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Ofrerfroma
buyingagent
Thisletterisfrom a
buyingagentin the UK
askingiftheycan
represent
a Frenchstore.
Goodbuyingagents
havea first-class
knowledge
of a country,
its products,andthe
prices
mostcompetitive
on the marketfor goods,
freight,andinsurance.
Forthis reasonthey
oftentakea commission
o n c r r inv oic ev alu e s
ra t her t han
NE Tr Nvo rc E
V A L UE S .
L. Dobson
& e*. Ltd
RoyalParade
Plymouth
P L r4 8 G
+44(o)r75:3rz6r
Telephone
Fax +44@)t7523r7o8
EmailI dobson@dobco
uk
8 June 20-
Vivas S.A.R.L.
138rue Cimarosa
F-75006Paris
For the attention ofthe Chief Buyer
DearSir / Madam
E|.
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I am replying to your advertisement in the trade magazine Homecarefor a
buying agent in the UK to representyour group of storesin France.
My company already actsfor severalcompaniesin Europeand America. We
specializein buying domesticappliancesand other householdgoodsfor
these markets.We have contactswith all the leading brand manufacturers,
so are able to obtain heavily reducedexport pricesfor their products.In
addition, we can offer excellent terms for freight and insurance.
Our usual commissionis 5%on CIFinvoicevalues,andwe make purchases
in our principals'names,sendingthem accountsfor settlement.
We can keep you well informed of new products that come on to the market,
sending you any information or Iiterature that we think maybe helpful.
I have enclosedour usual draft contract for you to consider.I hope you will
be interested in our terms, and look forward to hearing from you.
Yoursfaithfully
l-(.1
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LeonardDobson
Managing Director
Enc.Draft agreement
r8o
Replytoabuying
agcnt'soficr
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V IVAS S" A" R . L "
TheFrench
company
is
interested
in takingon
L.Dobson
& Co.,but is
not happywiththeir
proposal
to chargefive
percentcommission
on
ctr invoiced
values.
r38rue ClmarosaF-75oo6Parls
Tel:(+33)| 46 o3r3og
Fax (+33)r 46 o3r9 3r
Email:varennem@vivas.com
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23June20-
10
MrLeonard Dobson
[. Dobson& Co.ltd
RoyalParade
PlymouthPtl4BG
UK
t||
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3
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DearMrDobson
Thank you for your letter in replyto our advertisementinHomecare.
Although we are interested in your proposition, the 5%commission you
quote on CIFinvoice values is higher than we are willing to pay.However,
the other terms quoted in your draft contract would suit us.
We acceptthat you can get competitive ratesin freight and insurance.
Nevertheless,we do not envisagepaying more than 3%commission on net
invoice values,and if you are willing to acceptthis rate we would sign a
one-yearcontract to be effective as from LAugust. We can assureyou that
the volume of businesswould make it worth accepting our offer.
Yourssincerely
Martp, Vayercnp
MarieVarenne(Mme)
ChiefBuyer
DoesMmeVarenne
concede
that Dobson
& Co.'s
usual
commission
is
iustified?
lf Mr Dobsonaccepts
MmeVarenne's
counter-proposal,
howlongwouldthe
contractbefor?
HowdoesMme
4 Whichwords in the
Varenne
suggestthat
letter havea similar
herofferisworth
m e a n i n gt o t h e
considering?
following?
€E
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b foresee
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ASeirt'rE?ort
Hereisa reportfrom an
agentwho issending
an
accountsalesto a British
publisherfor
booksshe
hassoldon hisbehalfin
Asia.The
South-East
agenttakesadvantage
of the letterto makean
enquiry.
5ri SilomRoad
Brngkok
Thailand
International
TradingCo.Ltd
Telephone
+66 287549
Focstmrle
+66 z 4859
Cablelnl]ad
Em otI l.chathng@
|nt rad.co.th
10
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4April 20-
MrJ.Trevor
Educational Books Ltd
187 Springfield Road
Chatham
KentME45SN
UK
DearMrTrevor
Wearesubmittingour accountsalesforthe consignmentdeliveredexOrianna.\ouwillfindourdraftf.orf-4,196.60
enclosed,which
isforthetotal
saleslessourcommission
at 10%andcharges.
a
A number of booksellershere have enquired about the availability of
scientific textbooks and classicfiction vwitten in a simplified form of
English and suitable for intermediatelevel students.
If you publish anybooks of this kind, pleasewouldyou send us details?If
not, we would appreciateit if you could put us in touch with a publisher
that specializesin this kind of book.
Yourssincerely
L. chailtr4j
t. Chailing (Ms)
Enc.Account salesand draft
r8r
Aceountrelcs
ACCOUNT S AI . ES
International
TradingCo.Ltd
By
5trSilomRoadI BangkokI Thailand
4April20-
T h i ss h o w st h e a m o u n t
InternationalTradingCo.
receivedfor selling
bookson behalfof
Educationa
I Books,less
chargesand
commission.
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Inthe matter of booksex-MV Orianna,soldforthe accountof Educational
BooksLtd,Chatham,Kent,England.
10
No. of copies
Title
Priceper copy
100
English Dictionary
f 14.00
f1,400
50
Adv.Eng.Studies
t600
100
International English
trz.00
t10.00
80
Eng.for Proflciency
f10.50
t840
70
Eng.for rst Cert.
L9.60
L672
90
Beginning English
t10.40
L936
[1,000
ln
x
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3
'ct
o
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3
t5,M8
LessCharges
OceanFreight
t260.o0
DockDues,etc.
f154.00
Marine Insurance
f189.60
CustomsTariff
f103.00
Commission@IOo/oon
t544.80
t5,448.0O
LISS
FINALTOTAI
L7,251,.40
t4,196.60
Signed
L.
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Pointsto remember
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1 If you are offering an agency,convincethe
agent that your products are worth selling
andwillfind a markdt intheir area.
2 Beclear about the type of agencyyou are
offering, for example exclusiveor nonexclusive,on a consignment basis on the
agent's account.
3 Ofier terms and suggestways of settling
accounts.Be positive about the support that
you, the principal, can provide for your
agenr.
10
r84
4 If you are asking for an agency,convincethe
manufacturerthat their products willbe
well represented.
186
t86
t8 6
r86
186
r8 6
r86
t86
t8 6
EX AMp L E s t8 8
189
r9 0
191
1gz
193
194
195
196
Road,rail, and air transport
c H A R A crE R rsrrcs
Roadtransport
R a i tra
l n sport
Air transport
D o c U ME N TA TIoN
R o a dtra n sport
Railtransport
Air transport
Ge n e ra l
R e q u e sfor
t a quotati onfor del i veryby road
Qu o ta ti o nfor del i veryby road
A d v i c eo f del i very
C o m p l a i ntof damagei n del i veryby road
R e p l y tocompl ai ntof damage
C o m p l a i ntto the carrrer
R e q u e sfor
t a quotati onfor del i veryby ai r
O_ u o ta ti on
for del i veryby ai r
A i rw a y b i l l
Shipping
197
T YPES OF V E S S E L
197
SHT PPING OR GA N tZA T|ON S
197 The ShippingConference
197 The BalticExchange
EXAM p L ES
198
SHT PPT NG D OC U ME N TA TTON
198
198
r9 8
198
198
Freightaccount
S ta n d a rdshi ppi ngnote
Bi l lo f l a di ng
Letterof indemnity
Pa c k i n gl i st
199
SHIPPING Ll A B l LrTl E s
199
F ORWARD TN G A GE N TS
2oo
Re q u e stforfrei ght
2o1
2oz
2o3
2o4
2oS
zo6
2o7
zo8
zo9
z1o
R e p l y tor equestforfrei ghtratesand sai i i r' gs
Bi l l o f l a d i ng
l n s tru c ti onto a forw ardi ngagerrt
F o rw a rdi ng
agent' senqui ryforfrei ghtrates
Sh i p p i n gcompany' srepl y
C o n fi rm a ti on
of shi pment
A d v i c eo f shi pmenttoi mporter' sforw ardi ngagent
A d v i c eo f shi pmentto i mporter
D e l a yi n arri valof shi pnrent
Sh i p p i n gcompany' srepl y
Containerservices
211
CONT AINER S
211
DOCUM EN TA TION
211
21't
EX AMp L E S2 1 2
213
214
2l5
z16
217
z t8
219
rates and sai l i ngs
Forexportinggoods
Forimporting goods
En q u i ry toa contai nercompany
C o n ta i n ercompany' srepl y
Certificateof origrn
Enqu iry for a time charter
Sh i p b ro k er'repl
s y
En q u i ry fora voyagecharter
Sh i p b ro k er'repl
s y
C e n e racharter
l
Pointsto remember
2 z o R o a dra
, i l ,and ai rtransport
2 2 o Sh i p p i n g
22o Containerservices
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person.It acknowledgesthat the goodswere
r eceived in apparent g ood o rder.
Only the consigneenamed on the air waybill
can claim the goods,and they will needto
quote the bill number.When a ToRwARDTNG
A GE NT
USES CONSOLIDATION
SERVIC ES
>seepager99,eachconsigneereceivestheir
own Housx ArR wAyBrLL,and will needto
quote the numbersof boththe master air
waybill and house air waybill.
General
Consignment notes and air waybills are
obtained from the freight company by the
consignor(sender)fllling out an instructions
for despatchform and paying the freight
charges.Chargesare calculatedby size
(volume),weight,orvalue,and sometimesalso
risk.
Most freight companiesareprivate carriers,
and areresponsiblefor taking proper careof
the goodsand getting themto their
destinationon time.
in transport is generally
Correspondence
between consignorsandfreight companies,or
consignorsand forwarding agents,who send
goodsonbehalf of the consignor.Customers
arekept informed about consignmentsby
means of.advicenotes,which canbe sentby
ordinary mail or email. They give details of
packing and when goodswill arrive.
In the EuropeanUnion (r u) and European
FreeTradeAssociation(r rra), movtuE Nr
for
cx RrrFrcArEs areused,especially
containershipments >seepage21rwhere the
consignment is taken through different
customspoststo member countries.
I n th e n u ,th e s T N G L A
E D MIN ISTR A TIV E
DocuMENr (se,o),
an eight-partsetof forms
for export declarations,incorporateswhat
were previouslyseveralcustomsforms.The
E
s r Mp L rF rx Dc r,x A R A N cpx R o c E D U R(scr)
is
usedto make documentationeasierfor
exportersand agents.
No customsdocumentsarerequiredfor
trade between Eu member countries.
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Reques t f or . r
q uot at ior r f or
d eliv er y by r o. rd
54-59 RiversideI Cardiff| crr lw
Telephone:
+44 @)zgzo 4972l
Fax:+44(o\zgzo 49937
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Int hisex am ple
M r C l i ff
the
of Homemakers,
furnituremanufacturer
we m etin ear lier
un i ts ,
faxesa roadhaulage
firm to askfor a
quotationto deliver
furnitureto a customer,
R.H ughes
& S on.He
describes
the packing
(notethat sizerather
thanweightwill beth e
m ainc onc erof
n t he
ca r r ier
in t hisc as e),
stat es
t hev alueof th e
cons ignm ent
and
,
m ent ions
a deliv e ry
ti me.
S f fi U { b flfl d,l H - €,\{ # bffi fl ffi H
To
CartiersLtd
Fax
02920498315
From
R.Cliff
Date
10November20-
Subject Quotation for Swanseadelivery
Pages
1
Pleasequote for collectionfrom the aboveaddressand deliveryto:
R.Hughes & SonLtd, 21Mead Road,Swansea.
6 divansand mattresses,T00cmx 480cm
7 bookcaseassemblykits packedin strong cardboardboxes,each
measuring r4me
4 coffee-tableassemblykits, packedin cardboardboxes,each
measuring 10m3
4 armchairs,320x190x 260cm
The divansand armchairsare fully protectedagainstknocksand scratches
by polythene and corrugatedpaper wrapping, and the invoicedvalue of the
consignmentis f 4,660.50.
I would appreciatea prompt reply,as deliverymust be made beforethe end
of next week.
RiLhaloLilff
Richard Cliff
Director
r8 8
Quotationfor
delivcryby road
CARTNERSL TD
516- 519
CATHAYS PARK.CARDTFF
C F 1 9U J
/I /9
Telephone+44 @)29zo 821597
F acsimile+44 @)zgzo 4983t5
Fax
To
R.C]iff
Fax
029 20 49937
From
H.Weldon(Ms)
In herreplytoMrCliff's
fax,noticehowMs
Weldonrefersto the
consignment
noteasa
recerpt.
Sheincludes
loadingandunloading
the consignment
in her
quote.(Carriers
may
quotefordeliveryon
a
time basis,
ashere,i.e.
howl ongi t w i l l taketo
l oador unl oad
the
vehicle.)
!J
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10November20-
Page(s) 2
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Subject O_uotationfor Swanseadelivery
Date
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Dear Mr Cliff
In reply to the fax you sent today,we can quote t272.20for picking up and
deliveringyour consignmentto the consignee'spremises.This includes
loading and unloading, plus insurance,and is valid with immediate effect
until 14December20-,
If you would like to go ahead,pleasecomplete the DespatchNote with this
fax, and let us know two days before you want the delivery to be made. Our
driver will hand you a receipt when he collectsthe consignment.
Ifyou have any queries,pleasedo not hesitateto contactme.
H. We,ll"on'
H.Weldon(Ms)
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Adviceof delivery
HomemakersLtd now
advisetheir customer
by em a il.
Ja l xl
M a'l ! + l" lEooTplQ
Jj_pu:rylF*.#l#--h*_Gl*R_tCIl"
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Lnsert Fqrmat fools
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Subject:
I
OrderNo. B'1517
11
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lnvoiceNo. DM2561
Cl.
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DearRobert
EI
As our own driveris ill, I havearrangedfor CartiersLtd to deliverthe aboveorderon
Wednesday18 November.Beforesigningthe DeliveryNote,couldyou pleasecheckthat the
consignment
is completeand undamaged?
I haveattachedthe invoice,No. DM2561,and willadd it to yourmonthlystatementas usual.
RichardCliff
Director',
HomemakersLtd
54-59 Riverside,
CardiffCF1 1JW
+44
(0)2920
Tel.'.
49721
Fax: +44 (0)29 20 49937
Email:rcliff@homemakers.com
t90
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lnsert Fermat Tools Actions l|elp
l l n o r c e r t acn
subject:
I
Complaintof
d a ma g ein
deliveryby road
I n t h i s e x a m p l et h e
goodswere sent by
road,at the consignee's
request,and were
receiveddamaged.
DiscS.A.,
the customer,
i s e m a i l i n gt h e i r s u p p l i e r
to complain.
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Consignment
Note 671342158
11
lear HerrGerlach
m
Yesterday
we receivedthe aboveconsignment
to our orderNo.021310,
butfoundthatthe
lDs in boxes4, 5, and 6 weredamaged- eitherscratched,split,or warped.
The goodscannotbe retailed,evenat a discount,and we wouldliketo knowwhetheryou
vant us to returnthemor holdthemfor insoection.
xll
3
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q,
Regards
PierreG6rard
Manager
DiscS.A.
251 rue des Raimonidres
F-86000 PoitiersC6dex
Tel:(+33)2 99681031,T6lecopie:(+33)2 74102163
Email:p.gerard@disc.co.fr
1 ln what waysarethe
cosdam ag ed ?
2 Werealltheboxes
damaged?
3 lsthere any chanceof
sellingthe goods?
4 ls M. G6rardgoing
to returnthe
consignment?
rO
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Replyto complaint
of damage
'R.G.
Electronics
AG
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Havmart6ol
D-5ooooKiilnr
Telefon(+49)221j2 42 98
Telefax(+49)zzt 83 6t z5
Emailgerlachrqrge.co.de
www,rge,oe
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YourRef:
lTAugust20-
11
P.Gerard
Manager
DiscS.A.
251ruedesRaimonidres
F-85000PoitiersC6dex
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DearM.Gerard
x
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Iwas sorryto hear about the damageto part of the consignment,No.T1953,
that we sent you last week.
I have checkedwith our despatchdepartment and our recordsshow that
the goodsleft here in perfect condition. Our checker'smark on the side of
eachbox - a blue label with a packer'snumber and date on it - indicates
this.
As you made the arrangements for delivery I am afraid we cannot help you.
However,I suggestyou write to GebrtiderBauerSpedition,and if the goods
were being carriedat'carrier'srisk',asthey usually arein thesecases,I am
surethey will considercompensation.
.
I haveencloseda copyof the receiptfromtheir goodsdepot at KoIn.Please
Iet me know if we can supply any other documents to help you with your
claim.
Yourssincerely
ailf Serl^arA,
Rolf Gerlach
SalesDirector
Enc.
El
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WhatdoesHerr
quotein
Gerlach
the letter?
Why doesn't he take
responsibilitlr
for the
consignment?
Whyishesurethe
goodswerein perfect
condition
whenthey
lefthiscompany?
What helpdoeshe
offerM.G€rard?
Whichwords in the
letterhavea similar
meaningto the
following?
a harm
b placefrom which
goodsare sent
c provide
Complelrtto
the crrrhr
251ruedesRaimonieres
F-86ooo PoitiersC6dex
(+33)
Tdlephone
z 9958ro3r
T6f6copic(+33)
z 74loz16g
tr
Emailp.gerard@disc.co
R'f. PG/AT
Disc5.A.writeto the
carrier.
Onreceiptof this
letter,the carrierwil I
inspectthegoodsand
decidewhetherthe
damagewasdueto
negligence.
lf it was,the
customerwillreceive
' compensation.
{
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14September20Gebriider Bauer Spedition
Mainzerstrasse,201-7
D-50000 Kdln 1
11
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Dear Sirs
o
Consignment Note 671342158
The aboveconsignment was deliveredto our premises,at the above
address,on 6 September.It consistedof eight boxesof read / write CDs,
three of whichwere badly damaged.
We have contacted our suppliers,and they inform us that when the goods
were deposited at your depot they were in perfect condition. Thereforewe
assumethat damage occuredwhilethe consignment was inyour care.
The boxeswere marked FRAGItE and KEEP AWAY FROM HEAT.However,
the nature of the damage to the goods(the CDswere scratched,warped, or
split) suggeststhat the consignment was roughly handled and left near a
heater.
We estimate the loss on invoice value to be €500.00, and as the goodswere
sent 'carrier'srisk'we are claiming compensation for that amount.
You will find a copy of the consignment note and invoice enclosed,and we
will hold the boxesfor your inspection.
Yoursfaithfully
?. QeranL
P.G6rard
Manager
Whatdidthe
consignment
consist
of?
HowdoesM.G6rard
thinkthedamage
wascaused?
WhydoesM.G6rard
feelhe hasa rightto
claimcompensation?
Whatconditionwere
the goodsin when
delivered
to the
carrier's
depot?
Whatcompensation
isM.G€rard
asking
for?
Whatisbeingsent
with the letter?
Whichwordsin the
letterhavea similar
meaning
to the
following?
a placeofbusiness
b acceptastrue
c easilydamaged
d keep
eo
g
-
193
00
E
Rcqucrtfiora
quotetlon for
doltnrybyelr
E
G
C
BritishCrystalfaxan
airlinetofindout how
muchit wouldcostto
sendglassware
to their
agentsin SaudiArabia.
rSeepagesq4-t76
for previous
correspondence.
r
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G T AZ IER H O U SE 'C R EEN LAN E'D ER BY
D El l R T
r EL EP Ho N E :+4 4 ( o ) r 3 3 2 4 j 7 g o . F A c sI M | [ E : +4 4 @ ) 1 . 3 3 z5 1 9 7 7
Email:felthams@crysta
Lcom. www.britishcrystal.com
FA X M E 55A G E
11
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To
UniversalAirwaysLtd
From S.Feltham(ExportManager)
Faxno.020763855555
SubjectShipmentenquiry
Date 15June20-
Page/s 1
|!
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We would like to send ex-Heathrow to Riyadh,SaudiArabia, L2cratesof
assortedglassware,to be deliveredwithin the next ro days.
Eachbox weighs 40 kilos, and measures0.51m3.
Couldyou pleasequote
chargesfor shipment and insurance?
S.Feltha*n
S.Feltham(Ms)
ExportManager
194
Quotdbnfior
deltvcrybyelr
UniversalAirwaysltd
AirtineHouse
PalaceRoad
Londonswl
+44 (o)zo75384rz9
Telephone
Fax+aab)2o7638ISSS
CabJe
UNIWAY
ffJ:'"',ffi:;:;*''""Ms S.Feltham
ExportManager
British Crystal Ltd
Glazier House
Greenlane
Derby DEl1RT
Hereisthe airlinelreply
to Ms Feltham.We
saw
on pager87that airlines
freightcharges
calculate
In
byweightorvolume.
this casebothwill have
beentakeninto account.
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DearMs Feltham
Thank you for your enquiry of 15June.
We can sendyour consignment to Riyadh within z4 hours of delivery
to Heathrow.The cost of freight Heathrow-Riyadh is f10.60 perkilq plus
f,8.00air waybill, and f 54.00customs dearance and handling charges.
Youwillneedto arrange your own insurance.
Pleasef,ll in the despatchform and retum it to us with the consignment
and commercialinvoices, one of which shouldbe included inthe parcel
for customs inspection.
Pleasecontact us for any further information.
Yourssincerely
R. La/"e/o
R.Laden (Mr)
CargoManager
nf3 rio Lo{hdac ]8r}95
v.r lto 85r!5259!t
Whatothercharges
aretherebesidesthe
freightcharges?
Whyshoulda copy
ofthe invoicebe
in the
included
parcel?
Whowillarrange
insurance?
4 Whatformmustbe
completed?
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Air waybill
30433174
30433174
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BR|TISH AIRWAYS
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il rs agreed lhal the goods h€r€n ars ampt€d In apparent god ord€.and ondtoon
(€r@Dl as no ed) ror cail aoe SUBJECT TO THE CONDI_ O\S OF CONTMC I oN IHF
REVERSE HEREot A,L dooDs MAy aE CARR,Eo By ANy orHER MEANS ,NCLUDTNG
ROAO OR ANY OTIER CARRIER UNLESS SPECIFIC CONTRARY INSTRUCIIONS ARE
GIVEN HEREON BY THE SAIPPER. AND SH PPERAGREES THAT THE SHIPMENT MAY BE
CARRIED VIA INTERMEDIATESIOPPING PUCES WHICH THE CARRIER OEEMS
APPROPR ATE THE SHIPPER SANENTION S DMWN TO THE NOTICE CONCERNING
CARRIER S L MITATIONOF LlSlLlw
Shipper may increase such hnabn of labilIy by
decl.r n9 a h gher value for €rna96 and pay ng a supplementalcharge f reqund
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ISSUING CARRIER MAINTAINSCARGO ACCIOENT LIABILIry INSUMNCE
lssuingCarrier'sAgent Name and CiV
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Airporl of Departure(Addr of FirstCarrer) and R6qu6stedRouting
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Handhng Informalion
COPY
CANCELLED. SPECTMEN
RaleClass
Rate
lt
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Natureand Ouantiiyof Goods
(incl Dlmehsions
orVolum€)
Chaqe
Shipper cerlifies lhat the particulac on lhe face hereof are correct and that Inaofar as any p6n ol
th€ conaignmgnt
contalns dangerous goods, such ped iB prop.rly descrlb€d by hamo and is ih
proper condition ior €.dage
by air according to the appli€ble
DEngercus Goods Rogulations
Signalureof Shipperor his Agent
125-30433174
oRTGTNAL
3 (FORSHTPPER)
W hic hair lineist he
carrier?
Howmanyoriginal
copies
wouldthe
get?
consignor
196
What international
associationisthe
carriera memberof?
lsthis a document
of title?
Canthe air waybillbe
transferredto
anotherpersonor
company?
c How is the consignee
referredto?
' Whichtwo signatures
are required?
!; Howdoestheair
waybill referto what
the goodsconsistof
a n d h o w m u c hi s
b e i n gs h i p p e d ?
t 5hippinggoodsr. a'
can be chargedi.:x
ways.What are t'.r
shipping
T Y P E SOF V E5 5 E t
A variety ofvesselsareusedto transport
goods:
- Burr cARRr.ERs
transportbulk
consignmentssuchas grain,wheat, and
ores.
- Taxrzns transport liquid bulk
consignments,usually oil
- Containervessels
havespeciallifting gear
and storagespacefor the containers(1arge
steelboxes)that they transport.
- Passenger
cargovessels
concentrateon
cargoes,but alsocarry passengers.
They offer
more facilitiesfor loading and unloading
than passenger
liners.
- Passenger
linersfollow scheduledroutesand
concentrateon passengerservices,but can
alsocarry cargo.
- Roll-onroll-off(Ro-Ro)ferries
arevessels
constructedwith large doorsat eachend so
that carsand trucks can drive on at one port
and off at anotherwithout having to unload
and reloadtheir cargo.
- Lightersareusedfor taking goodsfrom a
port out to a ship,or vice versa They can also
do the samework as a barge
- Bargesarelargeflat-bottomedboatswhich
areusedto transport goodsinland along
riversand canals
S HIP PIN G OR G A N IZ A T IO N S
Exporterscanchoosewhetherthey usea
companywhichis a memberof the SHrpprNc
CoNFERENcEBroup,or onethat is listedon the
B ar rrc Ix c u a rc t.
The ShippingConferenceis an international
organizationof shipownerswho meet
periodicallyto setpricesfor transporting
goodsor passengers.
Thereare several
advantagesfor their customers.The costsof
shippingaresteady,ie theydonotfluctuate
overa short period,and universal,i.e.the same
price is quotedby all members.Also,vessels
registeredwith the ShippingConferencekeep
to scheduledroutes,sobookingscan be made
sometime in advanceFinal1y,customerscan
claim rebates(discounts)by shipping in bulk
or for regular shipments
N ow -C orrnR E N cEsH rps,asthe term
suggests,
arenot registeredwtth the Shipping
Theytravel anywherein the world
Conference.
on unscheduledroutes,pickingup and
dellveringcargo.The old term for this kind of
shipis atramp.
The airline industry has an organrzation
similar to the ShippingConferenceThis is the
InternationalAir TransportAssociation(rara)
q,
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Among its other functionsthe BalticExchange
has a freight market which offersfacilitiesfor
exportersto cHARTER(hire)shipsand alrcraft
through sHrpBRoKERsShipbrokers
work on a
commisslonand are specialistswith a
knowledgeof the movement of shipsand
aircraft,and the most competitiverates
availableat any one time
Oncea brokeris contactedthey will flnd a
shipownerwho is preparedto hire a vesselon
ei theravoyacx cH A R TIRor arIME cH A R TE R
basis Voyagechartercharges,i.e chargesfor
taklng freight from port A to port B,are
calculatedon the roNNecn velul of the
cargo Forexample,if an exporterships5oo
tons ofgrain att4.zo perton,thecostofthe
charterwill be !z,roo. Time charterchargesare
calculatedon the tonnage(size)ofthe ship
plus its running costs,excludingwages.Sothe
largerthe ship,the morethe hirerpays,
regardlessofwhether the cargois 5oo tons or
5,oootons.A contractbetween a shipowner
pARTy
and a hirer is known asa cHARTER
Shipslisted on the BalticExchangedo not
run on scheduledroutesand freight charges
vary from companyto companydependingon
supply and demand.Telephone,fax, or cable
areusedfor speedycommunicationbetween
hirers and brokers,and brokersand owners,
and lettersto conflrm transactions.
197
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S H IP PIN G D O C U ME NTA TION
The main documents used in shipping are
describedbelow
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F re i g h t a c c o u n t
A rnnroHt AccouNT is an invoicesentbythe
shipping companyto the exporterstating their
charges.
Ste n d .rrd s h i p p i rrg n ote
sHrpprNGNorg is a document
A sTANDARD
completedby the exporter.It is sentto the
forwardingagent,an rwlAND cTEARANcE
DEpor (rco),orthe docks.It is usedasa
delivery note or receipt and givesinformation
about the goods.When the goodsare delivered
to the docks,the driver hands over copiesto the
shipping company.One copy goeswith the
goodsto the consignee;twoarefor customs;
one remains at the dock oftce of the carrier;
and one is usedby the shipping companyto
preparethe bill of lading.
copieskept for records.As soonas one ofthe
originalsis usedas a documentof title, the
other original copiesbecomevoid.
A sH rppnpB ILLoF LA D IN Gi s si gn edwhen
the goodshavebeenloadedonto the ship.
Sometimesthewords shippedon board are
usedto mean the samething.
Bills of Iading are markedcLxAN to indicate
that the consignmentwas taken on boardin
goodcondition,or c LAUs ED to indicatethat on
inspectionthere was somethingwrong with it,
e.g.the goodswere damaged,or there were
somemissing.The statementc/cusedprotects
the shipping companyfrom claimsthat they
were responsiblefor any damageor loss.
In crr and crR transactionsthe words
fieight prepaid are usedto signify that the
costsof shipment havebeenpaid.
Bills of lading can be made port to port,
i.e.from the exporting port to the importing
port.lMhencontainersareusedand aretransshippedfrom one mode of transportto
another,e.g.truck to ship and then to train, a
MUITTMoDALBrLLoF LADINGis used.Thisis
alsoknown asa rHRoucH or coMBINED
T R AN SPO R T
Si l l o f l a d i n g
A g rrr oF LADTNG,
often abbreviated
to s/r
>seePage2o2,is the most important
documentin shipping and describesthe
consignment,its destination,and who it is for.
It can be a documentof title, i.e.it gives
ownershipof the goodsto the personnamed
onit. Ifthewords ro oRDERarewritteninthe
consigneebox,it meansthat it is a
NEGoTTABLE
DocUMENTand canbe traded.
In this caseit will be EN DoRsED( i.e.the
exporter will sign it on the back).If it is not
endorsed,there are no restrictionson
ownership. In a letter of credit transaction the
advising / confirming bank will usually ask for
the bill of lading to be made out to them when
they pay the exporter,and then transferit to
the customerwhen the customerpaysthem.
Bills of lading can be made out singly or in
signedsetsof two, three,or more original
(negotiable)copies,with further unsigned
1 98
BILL.
The BoleroProjectis developing full
computer-to-computershipping and bank
documents,making paperlessdocumentation
available.In this casea bill of lading is referred
to as aBolerobiII of lading.
Letter of i rrdenrrri ty
A rxrrER oF rNDEMNrtyis usedif the bill of
lading is lost or missing.The importer gives
detailsof the consignmenton company
headedpaper,and confirms that they wiII be
responsiblefor the debtsto the carrieragainst
their assets.
P acki ng l i rt
In addition to the bill of lading,a racxrNc rrs:
may be required. Like a bill of lading, this gives
detailsof the consignment.Banksusethem r
letter of credittransactionsand the customs:
somecountriesinsist onthem.
S H IP PIN G L IA BIT IT IE S
The Hague-VisbyRules,amendedby the
BrusselsProtocolof r968,governIiability for
lossor damageto cargocarriedby seaunder a
bill oflading. They statelevelsof
compensationandthe limitations of the
carrier'sresponsibilityfor goods.The carrieris
not responsibleunderthe following
conditions:
- actsof war. riots.civil disturbances
- FORCE
tttatnvpr,i.e.exceptionaldangers
suchas severestorms
- negligence,i.e.when the goodshavenot
beenproperlypackedor were in bad
conditionwhen packed
- T N H E R E NvTrC E ,i .e .w h egno o dsaresubj ect
to deteriorationbecauseoftheir contentor
nature,e.g.flsh can go bad,wood can be
attackedby parasites,metal can oxidize
The importer's forwarding agent,in turn,
informs the client,sendsthe goodson,or
arrangesfor them to be storeduntil collected.
Many forwarding agents in importing
countriesalsoactas cr,EARrNG
AGENTS,
D through
ensuringthat the goodsare cTEARE
customsand sentto the importer
Becauseforwarding agentshandle large
numbersof shipments,they can use
consolidationand collectconsignmentsfor the
samedestinationand get competitive
cRouIAGE RATEs for sendingseveral
consignmentsin one shipment.
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The Hamburg Rulesof 1978extendthe
shipping companies'liabilityfor damageor
delayto goodsin their charge,unlessthey can
provetheytook aII measuresto avoid
problems.
Tobe safe,most companiesinsure
underall nrsrs (an)
their consignments
cover,which protectsthem againstmost
contingencies,but specialwar insuranceis
necessaryfor particularly dangerouszones.
FO R WA R D IN GA G E N T S
Forwardingagentsareusedto arrangeboth
import and export shipments.Inthe caseof
export shipments,their servicesinclude
collectingthe consignment,arranging
shipment and,if required,packingand
handling; alsoall documentation,includlng
making out the bill of lading,obtaining
insurance,sendingcommercialinvoicesand
paying the shipping companyfor their clients.
They are involvedin the logisticsof
transportation,finding the most effectiveand
economicalroute.They alsoinform the
importer's forwarding agent that the shipment
is on its way by sending an advicenote.
199
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Requcrtfor frclght
ratcr and sallln6s
of
LeeBoatBuilders
HongKongfax Far
Lines
Shipping
Eastern
to askaboutfreight
ratesandsailings.
>Seethe
on page
correspondence
r65for the beginningof
thistransaction.
Dock4,Mainway
HongKong
Telephone
+85238516z
Fax+852662553
Focsimile
tee Bootbuildcrsltd
From John Lee
To FarEasternShippingLines
Fax 852 602135
SubjectYourorder No. 90103
Date 2lApril20No.ofpages1
x
rll
DearSir / Madam
We intend to ship a consignment of dinghies and their equipment to
London at the beginning of next month. The consignment consistsof ten
boatswhichhave beenpackedinto wooden cratesmarked1-10,each
measuring4 x 2 x 2.5metresand weighing 90 kilos.
Could you inform us which vesselsare availableto reach London before the
end of next month, and iet us know your freight rates?
I look forward to your repiy.
Jolwtoo
Johnlee
Director
200
0/D
c
Eitlof lading
Bill of
or Port to Pod
for Combined
B/L No
.L
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a
Seepager98 for
'
detailsof this
document.
fthsisee
or Ordd (for tJ S ftlde
only: Nol Nesdisble unl6c dndired
fr
Otrr')
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Plac€of
D e l i v e ry ' ^ rd t rs b rru n r' * h . ^ rh rh n . n (!
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Uodermentioncd paniculars as dcclared by Shippei but not acknowledged by the Cafiier (s4 clause 11)
Morks and Nosi (bnkincr
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Nds;
I Numk.
and rind ofPackag€€i Descriphon ofcsds
I
I
Total
N-o of ('onhrneMackn[ai
reccivcd
Fr.ight payablest
by thc CoilEr
(unl.$
otheil'k
nobd Mei.)
nunhrorouM
$. bkl
&bN.
b dl rhc tefr.
lnd @ndil'on!
h€.rctilN(
TARIFF'
lmn dc FR
of krD!
or th Pod of
rhrr
rk Gnt{id.r
iri
b.n
D'rrFd
v'n.rr,
o F. w h ' c h .'.dic.tp.6.r
tuonKucnllr
u rt n o * n
t o h rm rS ri C l u u s '
,he lf th. cnd.r
€ Nur br. hlorc h. trrrn.F!
d.l v.t
ilhor khon
rR.rbbl.
b rhe Crms
thr
In kr.ruDr
trad
nolvtrhtbtorn!
rhe non..rril{
uf rhF 8illdlL
0r...
lA8[E
Iumhr
otOnB'tr.l Bilh of ldins
IN WITND$of$.
snrr.cl hemin (onbin.d the numbr olonFns !
rbted opPsib h,s hn iriu.d, oneolwhich b.rq rccohpli.h.d
FOR P&O NEDLLOYD LTD, A5 CARRIER'
C,.\NCE[.L D . SPECIN,TENCOPi'
4261 88
mns B/u l@8
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202
I Whichwords make
the b ittof lad ing
negotiable?
.l Whatdoescombined
tronsport shipment
m ea n?
Wherewouldyouput 6 H ow w oul d
th en a m eo f th es h i p ?
consignees
identify
thegoodswhenthey
W h ou s u a l lsyi g n sth e
arrived?
b i l lo f l a d i n g ?
Wherewouldyoulist
d e ta i los fth e
consignment?
; Whoisthe billof
issuing
lading's
company?
What would it mean
if the billof lading
was claused?
Which part of the bill
o f l a d i n gw o u l d t h e
consigneeuseto
collect the goods?
lto Wherewouldyou
write the placefor
the goodsto be
unloaded?
+
lnstructionto a
forwardingagent
!
ThisemailisfromDelta
Comouters
to their
forwarding
agents,
Kent,
& Co.Ltd.
Clarke
instructing
themto pick
upa consignment
of
twentycomputers
whichisto besentto
NZ
theircustomers
Business
Machines
Pty.
>Seepagesr57-r64for
previous
correspondence.
JohnSimpson
DearMr Simpson
Couldyou pleasepick up a consignmentof 20 C2000computersand makethe necessary
arrangements
for themto be shippedto Mr M. Tannel NZ BusinessMachinesPty,100South
Street,Wellington,New Zealand?
Pleasehandleall the shippingformalities
and insurance,
and sendus fivecopiesof the billof
lading,three copiesof the commercialinvoice,and the insurancecertificate.We will advise
our customersof shipmentourselves.
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Couldyou handlethis as soon as possible?Yourchargesmay be sent to us in the usualway.
Ne i l Smi th ,
SeniorShippingClerk
DeltaComputersLtd
Wellingborough,
NN84HB,UK
Tet.'.+44 (0)1933 16431l2l3l4
Fax'.+44 (0)193320016
Email:smithn@delta.com
I What documentsare
involvedin this
shipment?
W howill let t he
customerknow about
s hipm ent ?
Whowill paythe
charges?
4 Whichwords in the
em ail h a v ea s i m i l a r
m ean i n gt o t h e
following?
a collect
b transported
c dea l w i t h
d inform
rO
c
o
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5
203
E
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Forrerdlng
egcnt'rcnqulryfor
frclght retcr
F
.E
Kent,clarke
& co.fax
InternationalShippers.
'*P
1( E N T ,C L A R K E P C O.1 ,T D
SO U T H BAN K H O U SE.BOR O U C H
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InternationalShippersLtd
Fax
02073126117
From
J.D.Simpson
x
Date
13May 20-
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|!
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Pages 1
e
g
SEI O AA
Facsimile
To
11
R O AD .T O N D O N
r Et EPHo NE: +44 @)zo7gz87V6. FAc s I M I LE: +44 @)zo7 928Tttt
Email:simpsonj@kencla.com
Subject NZ consignment
We have packedand readyfor shipment 20 C2000computers which our
clients,Delta Computers,Wellingborough, want forwardedto Wellington,
NewZealand.
The consignment consistsof 4 wooden crates,eachcontaining 5 machines
intheir cases.Eachcrateweighs 210kilos and measures94 x 136x 82 cm.
Pleaselet us know by return the earliest vesselleaving London for New
Zealand,and let us have your chargesand the relevant documents.
l. D.Sirttpsott,
J.D.Simpson(Mr)
Supervisor
CHAI RMAN : LoRD MATHERSON
DI R EcTORS: B. KENT A.C.A., C.D. CLARKE H.N.D., r.P. DltLER
REG NO:LONDON
vAT NO:41618231
204
3395162
5g
lntennational
ShippeF€i Ltd
Shlpplng
<ompeny'rreply
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FaC ti mi l e*4.1 i .. "-i ": '.': I
Fmetl po l a ,"; l '" '' h'1'ronl
,n r '\vvj ti .'4
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14May20MrJ.D.Simpson
Supervisor
Kent, Clarke& Co.ltd
SouthBank House
BoroughRoad
LondonSEl0AA
11
fn
x
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3
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DearMrSimpson
o
In reply to your fax of 13May, the earliest vesseldue out of london for
New Zealandis the Northern Cross,which is at present loading at No. 3
Dock,Tilbury and will acceptcargo until 18May, when she sails.Sheis
$ue in Wellington on 25June.Thefreight rate for casedcargois L612.OO
(sixhundred and twelve pounds)per ton or 10(ten)cubicmetres.
I haveenclosedour standardshipping note and biII of lading for you to
completeand returnto us.
Yourssincerely
Yuonne,Po//arr{'
Yvonne Pollard
ShippingManager
Enc.Standardshipping note
Bill of Iading
Cherrmln
[)u4l4r1
What is the Norfhern
6ross'sclosingdate
for cargo?
\rr 0()nald [^\\
pR (dstl..[)\l\4
9eg No, tncl-in,l
i] rrl'rnq
RI
Krlson
2 Whatotherwords
couldbeusedinstead
of dueout ofand due
in?
.,
\?T No. r2 6lr'.4 j I I
Whatarethe
charges?
s h i p p i ng
Which two
documentswill Mr
Simpsonreceive,and
w h a t s h o u l dh e d o
with them?
og
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Cocfimlrdonof
rhlpmcnt
Kent,Clarke,
& Co.
haveinformedDelta
Computers
that a vessel
isavailable
andhave
quotedthe costof
shipment.Deltahave
confirmedthat the
s ailingt im eand
r a te i s
acceptable.
Kent,Clarke,
& Co.now returnthe
completedstandard
shippingnoteandbillof
ladingto Internationa
I
Shippers
withthis
coveringletter.
I ( E N T , C L A R K E g C O.l -T D
S OU TH B A N K H OU S E .B OR OU GHR OA D .I.ON D ON5E l OA A
rt l.EPHo N ! : +44 lolzo TgzB 77r6. FAcs I M I r E: +44 (o)2o 7918 7il1
E mai l :si mpsonj @kencl a.com
17May20Yvonne Pollard
International Shippersltd
CityHouse
CityRoad
LondonEC2lPC
Dear Ms Pollard
We have arrangedforthe consignment of computers (seeourfaxof 13May)
to be sent to Tilbury for loading on to the Northern Cross,whichsailsfor
New Zealandon 18May.
Enclosedyou wiII find the completed standard shipping note and bill of
lading (6 copies),4 copiesof which should be signed and retumed to us.
I have also attached a chequein payment ofyour freight account.
Yourssincerely
J. D.1il4,f40ru
J.D. Simpson
Supervisor
.
Enc.Standard shipping note
Bill of lading (5 copies)
ChequeNo. 0823146
( hl'rMAN
DrRt(TO8S
totD
B flritA,CA
(D
acC rvo
rOtoorr
Y^T ilo'{r6r82Jr
zo6
MA!Hlt9oN
({rt.(dilO
i 19ltOJ
tq
aaOriret
HARTLEY-fuTASON
INC.
613WestandVineStreet/Chicago/lllinoisTelephone(+r)3128r8532
Fax(+t)3t2349o76
Emailt.hacken
bush@hartlev-mason.com
FaxMessage
To
EddisJones
Fax
015188970
Date
19April20-
Ref.
InvoiceEH 3314
Pages
Advlccof
rhlpmcntto
lmporter'l
forwerdlng.gcnt
Inthisfax,
Hartley-Mason
Inc.
isadvising
a British
importingagentthat
of
a consignment
is being
motorcycles
sentfor themto forward
to theircustomers,
Glough& Book.
>Seepagesr78-r79
for previous
correspondence.
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The following consignment will arrive on theAmerica,due in Liverpoolon
27April.
f
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20 'Lightning'L000ccmotorcycles.Packed1machineper wooden crate.
Weight 1.25tons gross.Size5'x 3'x 2'.Markings CasesnumberedL-20 I-M.
Value19,840.00each.(InsuranceChicago-NottinghamEnglandAR.)CIF
invoicedvalue f 203,000.
Could you pleasearrange for the consignment to be deliveredto your
clients, Glough & Book Ltd,Nottingham? If there are any problems,please
contact us immediately.
Tlu rna.rN. Hadcm^bu,sh,
ThomasN. Hackenbush
ExportManager
President J.R.Mason D.F.A.
Directols P.Ha rtley snr. P.Hartley Jnr.
207
Delayin arrival
of shipment
DearMs Pollard
Our clients,DeltaComputers,Wellingborough,UK informus that they havereceivedan email
fromtheircustomers,NZ BusinessMachines,Wellington,
NewZealandthat the Northern
yet
Cross,whichwas due in Wellington
June
25,
has
not
arrived.
on
The vesselwas carryinga consignmentof computersfor our clients,shippedB/L No. 6715,
and they want to knowthe reasonfor the delayand when it is expectedto dock.A prompt
replywould be appreciated.
Goodscan be delayed,
damaged,or carriedover
to anotheroort.ln such
casesthe seller or his
forwardingagentwill
contactthe shipping
company.Here,Mr
Simpsonof Kent,Clarke
& Co.,theforwarding
agent,emails
InternationalShippers
about a delay.>See
pageszo3-zo5 for
previouscorrespondence.
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0,
JohnSimoson
Supervisor
,
Kent,Clarke,& Co. Ltd, London
rer. +44 (0)2079287716
Fax'.+44 (0)20 7 928 7 111
Email:simpsonj@kencla.com
209
Ship p in g
company's
reply
TT
DearMr Simpson
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Ihe NorthernCrossdockedin Wellingtonwithinthe last 24 hours.lt was brieflydelayedby
enginetrouble.I am surethat yourcustomerswill now be ableto collecttheirconsignment.
We apologizefor the delay.Youwillknowfrom previousexperienceof shippingwith us that
our linemakeseveryeffortto keepto schedules.
This incidentwas an unfortunateexception.
Pleasecontactus if thereis anv furtherinformation
vou need.
YvonnePollard
International
ShippersLtd
CityHouse,CityRoad,LondonECzlPC
+44 (0)207312 5038
Telephone:
Fax:+44 (0)2073126117
Email: pollardy@intership.co.
uk
Containerservices
CO N T A IN E R S
Couraru r ns arelargemetalboxeswith two
basiclengths of zoft (6.rm)and 4oft (rz:m).
They are 8ft (2.4m)wideand Sft 6in (2.6m)
high The cubiccapacityof azoft containeris
and of.a 4oft container,66 9m3.A zoft
33.3m3,
containercan carry zo tons and a 4oft one
z6 tons.They can be loadedfrom the top, front,
or side Specialequipment is neededto move
them
Therearevarioustypes of containerfor
carrying individual items,bulk goodssuchas
grain or sugar,or liquids suchas oil and
chemicals.Containersfor carryingperishable
goodsare refrigerated.
Containerstowageis ratedin units called
rur, with a zoft containerequalto r tue and a
4oft one equalto z tue. Containersmay be
f llle da sa F U L LC o N T AT N ER
ro a o ( rcr),w hi ch
is chargedat a'box' rate no matter what its
weight or volume.However,shippersor
forwarding agentscanload smaller
consignmentsfrom different exportersinto a
singlecontainer.This is known as
c oN S o L ID A T Io N
o r c R o u p a c r, a n deach
consignmentis chargedasatnss rHAN FULL
c oN rArN ERro e p (rc r).
Most ports havefacilitiesfor loading and
unloading containers Oncea containerleaves
the ship,it is sentby rail and / or roadto the
consignee.Containerbasesfor imports are
k n o wn
a s co NT AINER
F REIGHT sT A TIoN S
(cFS).
D O CUA' IENT AT ION
Theusual documentationfor goodsto be
exportedby containeris a coNrArNxR
wAyBrLL This is not a documentof title,but
can be usedto transferthe goodsfrom one
method of transportto another,e.gtruck to
ship,and ship to train However,container
shipmentscanalsobe coveredby a
multimodal bill of lading.Goodscoveredby
thesedocumentsare collectedat inland
cieatancedepots(rcos)and then senton to
their flnal destination.
A bill of lading can be usedasit is in ordinary
shipments,with the usual conditions
applying,e.g for a cleanshippedbill, naming
the port of acceptance(wherethe goodshave
beenloaded)and port of delivery(wherethe
goodswill be unloaded),the shipping
companyonly acceptsresponsibilityfor the
goodswhile on boardship But if a combined
transport bill is used,the placeof acceptance
and placeof deliverymay be covered,which
meansthe shipping companyacceptsdoor-todoor responsibility.
Norrr-NtcorrABLEwAyBILrs arealsoused,
but unlessinstructeci,bankswill not accept
them as evidenceof shipment,and they are
not documentsof title which canbe
transferred.Although waybills do not have
ciausesrelating to responsibilityprinted on
the backof them,asblilsof ladingdo,
containercompanieswill acceptthe usual
liabilities as applying to a waybill.
A freight accountis neededifthe sea-freightis
to be paidin the UK,and this is accompanied
by an arrival notificationform, which advises
the importersthat their goodsare due On
claiming the goods,the customerhasto show a
customsclearanceform, which allowsthe
goodsto be taxed,coplesofthe certificateof
origin,and if necessarya coMMERcTAL
INVorcx,an import licence,and a health
certificatefor food or animal imports.Thebill
of lading or waybill alsohasto be producedto
proveownershipof the goods,or if 1ost,a letter
of indemnity. Customsissuean our or
cHARGxworE oncethe goodshavebeen
clearedby them
This procedureis usedfor all forms of
importation,not only those in which
containersareused.The amount of
documentationrequiredis one of the reasons
why clearingagentsare employedby either
exporters,to get their goodsacceptedquickly
in a foreign country or importers,to cleartheir
goodsintheir own country.
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Enquiryto
a containcr
(omPany
Universal
Steelfax
Conta
iners
International
of
aboutaconsignment
steelthattheywant
shipped
to Hamburg.
Tefephone+44 (o)rl476o27l
Fax+44 (o)rr45to3r8
t.pike@
unisteel.co.u
k
www.unisteel.com
FurnaceHouse. GranvilleRoad. ShefFeldsz znl
To
International Containers
Fax
0207387665s
From
T.Pike,Export Dept
Date
15March 20-
e
x
ReferenceShipmentenquiry
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Pages
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UI
We are a large steel company and wish to export a consignment of steel
tubing, approximate weight 16tons, and lengths varying from 2 to 6
metres.
The consignment is destined for Dortner Industries,Hamburg. Could you
pick it up at our works in Sheffeld and deliver it to Hamburg by the end of
April?
If you can handle this consignment by the date given,pleaselet us have
details of your sailings and freight charges.We can promise you regular
shipments if you quote a competitive rate.
Tlumnr ?ika,
Thomas Pike
Export Department
C hai rman
H .E l tham
DirectorsD.E.R.
Machin,O il
Ret No.62U97o
var No.31428716
Container
company'sreply
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Tariffs Exportcargoshippinginstructions Exportcargopackinginstructions
3
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DearMr Pike
3
Thankyouforyourfaxof 15March.
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The Europesailsfrom Tilburyon March26 and will arrivein Hamburgon March28, which
appearsto suit your schedulefor delivery.Pleasenote,however,that the vesselclosesfor
cargoon 24March.
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Youwillseefromourlistof tariffsthatchargesarecalculated
bycubicmetreor cubickilogram
andthatweoffprsubstantial
rebatesfor regularshipments.
Themostsuitable
foryourconsignment
wouldbea half-height
container
whichis
container
20'x 8' x 4'or',in metres,
of 18,300kg.lt hasa solid
6.1x2.4x 1.3.Thiscancarrya payload
removable
allelements,
top,andwillprotect
themetalagainst
I suggestthat,astheconsignment
is to be loadedfromlorryto shipandthentransferred
again,youshoulduseourcombined
transport
bill.Thiswouldcoverthegoodsfrompointof
point
you
acceptance
to
of delivery.
lf
wouldliketo goaheadonthisbasis,pleasecomplete
theattached
instructions
andtheexportcargopacking
instructions
and
exportcargoshipping
possible.
returnthemto usas soonas
Althoughwe acceptdoor-to-door
responsibility,
we
policy,
andsenda copyof thisandthree
wouldadviseyouto takeoutan all-riskinsurance
copiesof thecommercial
invoiceto us.
The cargoshouldbe markedon at leasttwo sideswitha shippingmarkwhichincludesthe
port.Thisshouldcorrespondwiththe markon yourshippingdocuments.
destination
,,,,
i.tli
yourinstructions.
I lookforuardto receiving
DavidMuner
Customer
Service
Manager
plc
International
Containers
LondonWCl H gBH
Tel: +44 (0)2073876815
Fax:+44 (0)207387 6655
Email:munerd@incon.co.uk
Howarethe freight
charges
estimated?
lsthereany
advantage
in the
exportermaking
regularshipments?
3 Whendoesthe
Europeclosefor
cargo?
',,:.
5 Whyisa combined
transportbill
rather
suggested
th a na bi l lof l adi ng?
4 Whattypeof
doesMr
6 Whatsortof liability
container
Munerrecommend?
w i l l t heshi ppi ng
companyaccept?
7 Doestheexporter
needto insurethe
cargo?
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Certificateof
origin
CENTIFICATEOF OFIGIN
e,[ml5{g{l$,i,ii"'',.(e;,,bu,.ic,'.,rbr'.,t.]'
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K'- - ''" '':'1" 'r r "
Ac E R T t F t G A T Eo F
I
oRr c r N i s u s e d t o s h o w
where the goods
originallycamefrom.
Goodsfrom the member
stateof an economic
union of countries,such
asth e e u a nd
Associationof South-east
A sianNatio ns(a se rr u) ,
pay a lower rate of
importta xth an n on members.lt is generally
issuedand authorizedby
a chamberofcommerce.
alsopager65.
'See
oi Ccomeicc
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THEUNOERSIGNED
AUTHOFITY
THAT
THEGOODS
INTHECOUNTRY
IN8OX5
CEBTIFIES
DESCRIBEO
ABOVE
ORIGINATE
SHOWN
of.lr/isJl y';JJSrIl $Lll lr: i1';)Ui ;15r.tt gt.',tt;i .L:r1i;3'Il i!l-.Jl Jd-.x
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RemarksI
, ' i l r, , |
lssuing Authority
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llo n! on Gr utnffilercbuntr
ECl
C E NT RALHOUSE.ROWtEYST REET .T OND ON
r E L EPHo N E + 4 4 @ ) zo 7 7 4 2 8 3 15
rex +44(o)zo7174z3.j1
FAXT RA NS M I S S IO N
To
Charter Dept, KeyserShipbrokersLtd
Fax
7671.9873
From
B.Meredrew
Subject
Grain transport to S.America
page) 1
No.ofpages(inc.this
Date
10lanuarv20-
Enquiryfor a time
charter
firm wants
A London
to chartera shipto
grain.They
transport
contacta shipbroker.
Mostof this
isdone
correspondence
byfaxor email,with
lettersusedto confirm
thecharteranda charter
partysignedto confirm
thetransaction.
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This fax is to confirm our telephone conversationthis morning in which we
askedif you could flnd a ship of six to seventhousand tons which we could
charter for six months to take shipments of grain from Baltimore, North
America,to various ports along the South American coast.
We will need a ship that is capableof making a fast turnround and will be
ableto manageat leasttentrips withinthe period.
B.Mudra,r
B.Meredrew(Mr)
Director
cHAr RM AN L.Spencerm .sc.( Econ.)
D r R Ecr oRs B.M er edr ew. L.Oban.C.M .Chir m i l l
215
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Shlpbroker'rraply
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tOW tAN D
ST R EET ,LO N D O N EC l 2R H
rELEpHoNE:+44 @lzo767t.FAx:+44 (o)2o767t9871,
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11
T'AX ilBSSAGB
To
Mr B.Meredrew, London GrainMerchants Ltd
Faxnumber o207L742337
x
From
BelindaMarston
sc
Subject
Grain transport to South America
Date
12January20-
x
Total pager
1
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DearMrMeredrew
With referenceto your fax of 10January 2G-, we are pleasedto inform you
that we have identified a vesselthat will meet your requirements.
Sheis theManhattan,andis currently dockedinBoston. Sheis abulk carrier
with a cargo capacity of seventhousand tons. Shehas a maximum speedof
24 knots, sowould certainly be capableof ten trips in the period you
mentioned.
Pleasefax us to confirm the charter and we will sendyou the charter party.
Yourssincerely
geli"nl^a'
Ua{storu
BelindaMarston
Charter Department
CHAIRMAN:
P.5. KEYSER
DIRECTORS: L.M. NOSOME,
REG No:
TONDON
R.N. LANDON
818171
vA TN o;31 4281563
zr6
Enquiryfor a
voyagecharter
rErEpHoNE+44 @)zo74673149(ro lines)
rrx+44(o)2o7467 Sg5g
PU T i l EY & R AVEi l
M ER C H Ai l T S I.ID
Dealers
House
CantleyStreet
London
Putney&Raven
Merchants
needa
shipto transporta
consignment
of
bauxite.
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To KeyserShipbrokers
11
Fax o2076719873
From David Raven,Shipping Dept
m
x0,
3
Date 7luly20-
!t
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Subject Shipcharter
f
x
Pages 1
We would like to charter a vesselfor one voyagefrom Newcastle,NSW,
Australia, to St Malo, Brittany, France,to take a consignment of 4,000
(four thousand) tons of bauxite.
Our contract statesthat we have to take delivery between 1and 5 August,
sowe will need a ship that will be able to load during those dates.Please
adviseus if you can get a vesseland let us know the terms.
Dilil'Rilren
David Raven
ShippingManager
DI RECTORS
M.L.Putney
D.Raven
R E cN o.E ngl and
615113
vAr No.2137',1942
217
p
reply
Shipbroker's
e
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r EL Ep H o N E: +44 @)zo 7 67t. FA x : +44 (o)2o 7 67t 9873
CL
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FAX IIIJSSAGE
To
11
tt
Putney&Raven
Faxnumber
74675959
X
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From
BelindaMarston
Subject
Option on MS Sheraton
o"t"
1oJuly2o-
Totalpages 1
You should have already receivedour fax in which we said that we had an
option on a vessel,MS Sheraton,which is dockedin Melbourne,Australia
at present.Shehas a cargocapacityof 7,000(seventhousand)tons and
although sheis largerthan you wanted,her ownersarewilling to offer a
part charter.
They havequotedf,12.30(twelvepounds,thirty pence)per ton which is a
very competitive rate considering you will be sharing the cost.
Couldyou fax us your decisionas soonaspossible?
BeL/4d^a'
Marstort
BelindaMarston
CharterDepartment
CHAIRMAN:
P.S. KEYSER
DIRECTORS: L.M. NOSOME,
R.N
LANDON
REc NO: rON DON 818171
vAT No:31
p
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lWha tdo esan op tion
onavesselmean?
2W her eis t heM S
Sheratonatthe
moment?
3lstheshipexactly
whatPutney&Raven
wanted?
4281563
4 Wh y i s t h e c h a r t e r i n g
costlowerforthis
shipment?
Adoptedby
Drumtuy
Chuber
Gcd
the
Comitee
of Shipping
of the
R E C OMME N D E D .
ofthe
UnrtYdom
lssued to some inlo iorce forlinures
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on and after | 5th Septemben 1922
o
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The Documentary Council ofThe Baltic &White Sea Conference.
C O D EN A ME :
o
=
GEN CO N.
tB
U N IFOR M GE NE RA L CHA RT E R.
!
!
AS REVISEDI922
t
T
(Only to be used for trades for which no approved form is in force).
Owners.
3
Ownersof the steameror motor-vessel.......,.,.........
of ........ tons ffifl Register and carrying about
Charterers.
Cargo.
tons of deadweight cargo,
4
no w.,...... , . . . . . .
5
and expectedready to load under this Charter about ...................
6
and Messrs
7
of..........., . . . . .
lVhere to
load.
n
I
2
Position.
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3
!
a
a
3
8
. . .a sC h a r t e r e r s
That the saidvesselshallproceedto ,,............,..,
9
,.,.,.,.or so near thereto as shemay safelyget and lie
r always afloat, and there load a full and complete cargo (if shipment of deck cargo
l0
ll
L2
agreedsameto be at Charterers'risk)of .................
t3
t4
t5
(Charterersto provideall mats and/orwood for dunnageand any separationsrequired,
l6
the Owners allowing the use of any dunnage wood on board if required) which the
t7
Charterersbind themselvesto ship, and being so loaded the vesselshall proceed to
l8
19
20
Destination.
2L
22
Rate of
freight.
as ordered on signing Bills of Lading or so near thereto as she may safettf.ilr3*i
23
lie always afloat and thete deliver the cargo on being paid freight -on
24
ouantitv-as follows
intaten
25
26
27
28
2r9
Pointsto remember
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Road,rail,andairtransport
1 In road,rail, and air transport the choiceof
method dependsonwhetherthe main
considerationis speed,direct delivery or
economy.Theseconsiderationsobviously
relate to the type of consignment involved.
2 The consignmentnote is the main form of
documentation used in road and rail
transport, and the air waybill in the caseof
airtransport.They are receipts,not
documentsof title. andthereforenot
negotiable.
5hipping
1 There are various types ofvessel availableto
carry difierent goods,e.g.bulkcarriers,
tankers,and containervessels.
2 Shippingcompaniescan either belongto
the Shipping Conference,an international
organization which setsprices for
transporting goodsor passengers,
or get
ships on Baltic Exchange,where ships and
aircraft can be charteredthrough brokers.
3 The bill of lading is the main form of
documentationusedin shipping.It can be a
documentof title.It maybe cleanorclaused,
terms usedto indicatewhether the goods
were in perfect condition when taken on
board or if there was somethingwrong with
them.
C o n ta i n e r s e rYi c e $
A convenient method of transporting
many types of consignmentis containers
(large metal boxes)which are taken to the
docksand then loadedon to containervessels.
Small consignments from different exporters
canbe loadedinto a singlecontainer.For
documentation,containercompaniesusually
use either containerwaybills or multimodal
bilis of Iading.
222
INSURANC E P R OC E D U R E S
222
F IRE AND A C C ID E N T P R OC E D U R E S
2 2 2 F i rei n s u r ance
2 2 3 A c c i d e n insurance
t
223 Claims
224
225
zz6
22J
zz8
229
M ART NE TN S U R A N C E
229 Lloyd'sof London
2 z g Ma ri n ei n surancepol i ci es
23o Claims
231
z)z
233
234
235
46
237
48
239
24o
Pointsto remember
5
UT
g
SJ
-
5
n
o
A c c i d e n t i n s u ra n te
Accidentinsurancecoversfour areas:
1 InsunarqcE oF LrABrLrrv,whichcovers
employers'Iiabilitiesfor industrial
accidents,accidentsto peopleattending
functions on companybusiness,and motor
lnsurance.
2 Propertyinsurance,whichis part of the
servicefire insurancecompaniesprovide,
but alsoincludesa wide rangeof protection
againstriots,terrorism,gasexplosions,etc.
Usually,the client takesout an all risks
policy,which offers full protection.
insurerswhen obtaining insurance,e.g.
overvaluedthe article, insured the same
thing twice, or gavefalse information on the
proposalform.
The insurer may,of course,ofier Iess
compensationthan the claimant is asking for.
If the claimant disagreeswith the offer,they
cancallin an independentassrsson, and
then, if necessarytake the caseto court.But
usually insurance companies are quite
reasonableintheir assessments,
and small
claimsare sometimespaidwithout ouestion.
5
6
g
!l
=
o
12
3 Personalaccident insurance,which ofiers
compensationin the form of benefit
paymentsto peopleinjured (ortheir
dependantsifthey arekilled) on outings,in
sporting accidents,or travellingby train,
coach,or air.
4 InsunancE oF INTEREsr,whichprotects
companiesagainstmaking costlymistakes.
Forexample,publishersmight want to cover
themselvesagainstlibel,i.e.being suedfor
publishing somethingwhich damages
someone'sreputation.Accountantsand
Iawyers also protect themselveswith
insuranceof interest.FrDELrry BoNDs can
be includedunder this heading.Theseare
usedby companiesto insure againsttheir
employeesdefrauding them or stealing from
them.
Cla i mr
Companiesand individualsmake claimsfor
loss,damage,or accidentbyfilling in a claim
form, which tells the insurance companywhat
has happened.If the insurersacceptthe claim,
often after an inspectionor investigation,they
will pay compensation.
The insurance company will not pay
compensationunder the following conditions:
if the claruaNr was negligent;if the claimant
sufferedthe injury or lossoutsidethe terms of
the policy; or if the claimant misled the
22]
o
E
a!
5
5
Requestfor
comprehensive
inlurance
UnitedWarehouses
wantto change
their
insurance
company.
In th islettertheyask
Westway
Insurance
for a ouorarroru.
Telephone:
+44@)tzz44t6t5
Fax:+44 (o)lzz46zz19
E m a i ld: a r a c o t b @ u n i wco
a rm
HeadOfFce
B r u c eH o u s e
BruceStreet
Aberdeen
Un ite d
Warehouses
Ltd
AB9 1F R
Yourref
Ourref N3762-1.
Date 6 April 20Westway Insurance Co.Ltd
SocietyHouse
EIIisonPlace
Newcastle-upon-Tyne
NE18ST
12
DearSirs
o
We would be grateful if you could quote us for comprehensivecover,i.e.
against fire, flood, accident,industrial injury and theft.
o
g
g
E
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We are a large warehouse selling furnishings to the retail trade, and
employing a staff of thirty. The building we occupy belongsto us and is
currentlyvalued,alongwiththe fixtures and flttings, at [350,000.Atany
one time there might be stockworth f 250,000on the premises.
x
ul
If you are able to supply a quote,pleasewould you take the following into
consideration:
Our fire precautions conform to current regulations: we have a fully
operational sprinkler system,which is servicedregularly, and fire exits on
every floor. In general,our health and safety record is excellent.
Our premises are on high ground, and the only danger from flood would be
burst pipes.
Sincewe began trading six years ago we have never had to claim for
industrial injury and damage to stock has been minimal. Pettytheft,which
is common in warehouses,has cost us only f 800 per annum on average.
Our present policy expires at the end of this month, so we would require
coverasfrom 1May.
We are changing insurance companiesbecauseof our present insurers'
increasein premium, so a competitive quotation would be appreciated.
Yoursfaithtully
B. Dararott
B.Daracott(Mr)
FinanceManager
C hai r m an B R M ac D onal d AC A
D i r ec tor s N 5 Sounes s .A C em i l l M s c .B D ar a c o t t
R egi s ter edi n Sc otl and N o 166c l 5r
v Ar N o 54 9or or 3
tr
.9
(9
5
c,l
224
Whatsortof policyis
UnitedWarehouses
askingfor?
Whatprecautions
havetheyta ken
against
fire?
Howmanypeopledo
theyemploy?
Whyarethey
c h a n g i nth
g eir
i nsurers?
5 Which words in the
letter havea similar
m e a n i n gt o t h e
following?
a full coveragainst
alleventualities
b maintainedand
repaired
c
d
verysmall
steal i ngthi ngs
in
smal l quanti ti es
rnsurance
protection
W
lnsurance Go. Ltd
RegionalOffice
SocietyHouse
Ellison
Place
pon-Tyne
Newcastle-u
n rr 8sr
Telephone
+44(o\ig1326115ExL
417
Fax+44(o)'rg't
5ot'r6
Emai I nsagum@westway.co.
uk
YourRef:N3162-1
Our Ref: 7134/9L
Date:
9 April 20-
Mr B.Daracott
United WarehousesLtd
BruceHouse
BruceStreet
AberdeenAB9lFR
DearMr Daracott
Thank you for your letter of 6 April in which you enquired about insurance
cover.
Quotationfor
comPrehensive
in s u ra n c e
I
c
ii
I
o
Inth is replyto United
Warehouses'
request,
noticethat Westway
Insurance
hasthree
policies
available
which
offercoverunder
differentconditions.
Mr
Sagumdrawsattention
to oneofthemand
offerstosend
anagent
n
to explainthe details.
Therateof45p%is
mentionedwithfutt
S
indemnification,i.e.
3
coverfor compensation E
E
basedonthemarket
o
valuesof the client's
F
stockandmachinery.
I encloseleaflets explaining our three fully comprehensiveindustrial
policies which offer the sort of coveryou require. PolicyA,351would
probably suit you best as it offers the widest protection at 45p%with full
indemnification. I would stressthat this is a very competitive rate.
Ifyou would like one ofour agents to call on you to discussany details that
might not be clear,I would be pleasedto arrange this. However,if you are
satisfiedwith the terms,pleasecompletethe enclosedproposalform and
return it to us with your chequefor f,3,700.00,
and we will effectinsurance
asfrom 1May this year.
I look forward to hearing from you.
Yourssincerely
N. Saguu,t,
N. Sagum (Mr)
District Manager
Enc.LeafletsA'351,
4352,A353
Proposalform
ChairmonsiDavidWedge
Directors M.Orwell r.p.a.,C.R.Archer r.r.s.,D F.Clement s
Reg.No England544712
VATNo.61576192
22t
c,
G
for
O_uotation
b on d in ga n
employee
lntern atio na lCred it
Cardshaveaskedif
Westwaywouldprovide
a fidelity bondfor one
i.e.
of their employees,
insu reh im a ga inst
defra ud ing the
company.Hereis the
reply.
W
lnsurance Go. Ltd
Regionaloffice
SocietyHouse
Ellison
Place
pon-Tyne
Newcastle-u
n rr 8st
+44 (0)191326l't1ExL4i7
Telephone
Fax+44(oltgt 5ort6
uk
Em aiI nsagum@westway.co.
YourRef:A4517
Our Ref: 1./47/9165
lTAugust 20Date:
12
o
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g
MrE.Brockway
InternationalCreditCardsplc
HardmanRoad
117-120
Sheffield52 2RL
CL
E
l!
x
DearMrBrockway
tlt
Thank you for your letter of 15August in which you askedabout bonding
your employee,Mr Alfred Cade.
We have checkedthe referencesyou gaveus and he appearsto have an
excellentrecord.Therefore,we arewilling to coverMr Cadefor f 60,000on
the understandingthat he only handlescredit cardsand customers'
accounts.If, however,he is going to deal with cash,would you pleaseinform
us at once?
Insurancewill be effectedas soonaswe receivethe enclosedproposalform,
completedbyyou.
Yourssincerely
N. Sanru,u'
N. Sagum(Mr)
District Manager
Enc Proposalform
ChairmansirDavidWedge
DirectorsM.Orwdl t p.a , C.R.Archer F.ts , D.F.Clements
zz6
Reg.No En9land544712
vAT No.61576192
United
Warehouses
Ltd
HeadOffice
Br uc eH o u s e
BruceStreet
Aberdeen
Tefephone:+44(oltzz44t 6t 9
Faxt+M(ol122462219
Email: daracotb@
unrwar.com
AB9 1F R
Yourref
OurrefN 3215-1
Date16Octoberzo-
Claims Department
Westway Insurance Co.ltd
SocietyHouse
EllisonPlace
Newcastle-upon-Tfne NEI 8ST
Clelmior firo
drmegs
t
5
tr
!l
5
Hereisa claimforfire
damagefrom
United
Warehouses
)see pages
zz4-zz5for previous
correspondence.
o
'/2
ln
xl,
3
DearSirs,
T'
o
r!
Poliry No.18465314C
o
We regret to informyouthat afue broke out inthe basement of our
warehouse yesterday.Although the blaze was quickly brought under
control, we estimate that about f 18,000worth of stock was badly damaged.
The Fire Servicehas advisedus that the blaze was causedby an electrical
fault, and is likely to have started at around midnight. Fodunately, their
prompt action prevented more extensive damage.
I would be grateful if you could sendus the necessaryclaim forms.
Yours faithfully
B. Damntt
B.Daracott (Mr)
FinanceManager
Cheirman B R.MacDonald Af A
Dlrortors N S.Souness, A. Cemrtl m i(., B Daracott
ReBrsteredin Scotland No,166o9r
vAr No.54 9or or 3
227
o
u
tr
t!
t
5
E
12
Replyto claimfor
fire darnage
WhenWestway
Insurance
received
UnitedWarehouses'
claim,ratherthan
sending
a formstraight
away,theysenta
surveyorto
inspect
the
damage,
confirmthe
cause
ofthefire,and
assess
whetherft8,ooo
wasa fair
compensation
estimate.
W
R egi onal Offi ce
S oci etyH ouse
E l l i sonP l ace
N ew castl e-upon-Tyne
n rr 8sr
Insurance Co. Ltd
Tel ephone+44 (o)191326i l 5 E x t:4rFox+44(o)l gt 5ou6
E mai l dpruet@w estw ay.cou,k
Your Ref: A 451.7
Our Ref: 1/47/9765
Date:
28October20-
Mr B.Daracott
United WarehousesLtd
BruceHouse
BruceStreet
AberdeenAB9lFR
o
g
sr
E
G
x
ul
DearMr Daracott
PolicyNo.18465314C
I now have the report from our surveyor,Mr McNulty, who visited
your premiseson 18Octoberto inspectthe damagecausedby the fire on
15October.
From the copy ofthe report enclosed,you will seethat although he agrees
that the fire was causedby an electricalfault, he feelsthat f 9,000 is a more
accurateevaluation for damage to stock at present market prices.However,
he suggeststhat we also pay a further f,2,800for structural damageto your
premises.Consequently,
we are preparedto offer you a total of f,11,800
compensationundertheterms of your policy.
pleasewould you completethe enclosed
If you acceptthis assessment,
claim form and return it to us,with a covering letter of confirmation?
Yourssincerely
D.Pru.et
D.Pruet (Mr)
ClaimsManager
Enc.Claim form
Choirman 5ir Dav id Wedqe
Dir er tor s M O r w el l r .p,a,C R Ar c her F r s ,D F C l em ents
tr
Whoinvestigated
th ec laim ?
c,
WhyisWestway
Insurance
offering
onlyf 9,ooofor the
damaged
stock?
.9
Ctl
zz8
Whatisthe f z,8oo
compensation
being
offeredfor?
4 What must Mr
Daracottdoif United
Warehouses
accept
Westway's offer?
Req No England 544j12
VAT N o 61576192
5 Whichwords in the
letter havea similar
m e an i n g t o t h e
following?
a examtne
b current
c as a result
d fillin
M ARI NE
I NSURANCE
Ltovo's or Lonpou is not an insurance
companybut an international insurance
market consistingof insurancebrokersand
uNDERWRrrlnswho arecontrolledby
Lloyd'sCouncil.
If insuranceis to be arrangedthrough a
Lloyd'sunderwrlter (andremember,there are
the transaction
other insuranceassociations),
hasto go through a lloyd's brokerwho,
working for a commission,will contact
underwriters on behalf of the client to get a
competitiverate.Underwritersfi.nancethe
insurance,which meanstheywill paythe
claims and take the premiums astheir fees.
They usuallywork in syNDIcArE s in orderto
spreadthe risk,with large corporations
supportingthe syndicates.Syndicatesmay
covermarlne rnsuranceor non-manne
insurancesuchas motor and aviation
insurance,or life assuranceMembersof
syndicateswrite the insurancedetailson a
Lloyd'sslip, which is sent to the lloyd's Policy
SigningOfficewhere it is checkedand signed
on behalf ofthe syndicateconcerned.
Underwriters get a percentageof the
premiums they guarantee.If, for example,an
underwriter acceptsr5%of a f,ro,ooopolicy,
he or shewill be responsiblefor fr,5oo
compensationin the event of a claim and
will receiver5%of the premium.
Iloyd's is responsiblefor, or associatedwith,
a number of publications:
- Lloyd'sListand ShippingGazette,a dally
newspaperreadthroughout the world,
which givesdetailsof shipping movements,
seaand air accidents,fires,strikes,etc.,and
essentialinformation concerningshipping
and dry cargomarkets.
- Lloyd'sShippingIndex ofrersdaily detailsof
the movementsof merchant ships.
- Lloyd'sLoadingListprovidesUK and
Europeanexporterswith lnformation on
cargocarriersto all parts of the world.
r: i:-,'=:::t :-.'
Generally,
marine rnsurar.ca
the International Undenv:ri -..g ---r: : : -:-..: . ;
(tua's)threemain clauses,
ca.-:i -:,s:-:-:::
Themost cornrr,c:.-s l-.-ls= .-CargoClauses.
which offersthe broadestform o: ::'"'=: -^:.
-:
all-riskbasis.This is the most expe:.s--,'e
Clauses
B and C offermore ]imlted .c';er a:1
arecheaperIf the pol::'.--;
consequently
issuedby Lloyds,there are alsoLloyo.s c';.-.
clauses,
which offerdifferenttypeso: ::'.-=::-difierent rates.
The client must readthe clausescare:*---,': make surethat their particularcargc:s ::'. ::: :
againstall the risksthat the shipmer.:::.-:::
meet.Thesecould include strikes,war, ar'l
piracy,aswell ascollisionand sinking
V aruro poLIcIEs arebasedon the va-* =: :
::
the invoiceplus insuranceand freight '.',--::.
on the value:: .: =
extrapercentage,e.g.to%o,
goods.Thereareal soU N V A LU IDpoLIcI : s
where the value of the goodsis not agree,:-:
if lossshouldocc;: - : -.
advancebut assessed
the
client
will,
if their goodsare
means
getthe marke:rr-:: i j
or
damaged destroyed,
compensation.The owner of the bill cf -a;-:.=
hasthe right to claim compensation
Goodsare usuallyinsuredfor a vovag: : : ::
agreedvaluebasis.However,if a clie:.:s: .: ;
regularlywith a given company,thev :: -=: :
askforanopE NcovE RpoLIcy,eg fort-" .' =- - . '=
months.Thepremium wouid be agree: :. .: .
beginningand the clientwould declar:::::
shipment,without limit on the nur.-r:r ::
shipmentsthey make.Alternativell-:.: : : --:-.'
might acceptall shipmentswithout
An initial paymentrr':;-* : =
declarations.
chargedand adjustedaccordingtc :i = : -:' : ::
of shipmentsmadeoverthat per:cc
o
I
E
E
t
5
E
Inthis casean insurancecertificatecoversthe
agreement.
Forgoodsby air,InstituteCargoClauses
providesimilarcovertdmarineinsurance.
Insuranceby air is cheaperthan by seaasthe
time takento transportgoodsis shorter.
Clalmr
12
230
Most policiescovercBNERALAvERAGE
sacnrrtcr, which meansthat compensation
will be paid for goodswhich have been
deliberately thrown overboard (e.g.higtrly
flammable goodsif fire broke out),but it is
essentialthat the client checksthe clausesof
thepoliry.
As is the casein large claims in non-marine
insurance,AvERAGE ADJu srERs,i.e.assessors,
are called in to examine damage and estimate
compensation.In a crr transaction, the
expoder transfers their right to compensation
to the importer asthe importer holds the bill of
lading.In rou and crn transadions,the
importer holds the insurance poliry asthey
arrangetheir own insurance.
I(ENT / CLA RK E p C O.1 -T D
S OUTH BANK HOUSE' BOROUGH
ROAD. LON D O N
5E1 OAA
r ELEpHo NE: +44 @)zo792877r6 . rn c s rrvrrr-E: +44 (o)2o 79287't1'l
Email:simpsonj@kencla.com
Facsimile
To
WorldwideInsuranceltd
Fax
0207263 6925
From
J.D.Simpson
Date
15May20-
Pages
3
Subject Delta shipment
R equert for
mari ne i nsuranc e
q uotati on
Kent,Clarke
& Co.are
forwarding
agentsfor
DeltaComputers
>seepages157-t64and
zo3-zo6for previous
correspondence.They
faxWorldwide
askingthem
Insurance,
to q uotea ratefor
Delta's
shipment
to New
Zeal and,w hiich
s
outsidethetermsof
theiropencoverpolicy
>seePage229.Notice
theexoressions
tx(from)theportof
departure,and
our ( at )
thedestination
oort.
=
tr
!r
=
tD
12
It
x
c,
3
9o
iF
x
We will be sendingon behalf of our clients,Deita ComputersLtd,a
consignmentof 20 computersto N.Z.BusinessMachinesPty,Wellington,
New Zealand.The consignmentis to be loadedonto theNorthern Cross,
ex-Tilbury 18May due Wellington 25June.
Detailsof packingand valuesare attached.Pleasequote ARport-to-port
rate.
We would appreciatea prompt reply
J. D.Suapson,
I. D.Simpson(Mr)
Supervisor
CHAI RMAN:
DlREcToRs:B
tORD MATHERSON
KENT A.C.A., C.D. CLARKE H.N.D., R.P. DltLER
REc NoTLoNDON
vAr
No:41618231
3395t62
5g
2lr
o
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t
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t
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B
E
o
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l!
Quobtlon for
mednc Intunnco
InthisreplytoKent,
Clarke,
& Co.,Worldwide
Insurance
suggest
a
valuedpolicy,which
wouldcoverthe
consignment
for
f22,oooplusro%
againstall risks
includingwar,strike,and
normalandexceptional
damage.The
consignmentwould
be
insuredfromthe date
the shipleavesportto its
arrival.
A orc t-ARATtoN
ronn giv es t he
insurance
company
informationaboutthe
shipmentsotheycan
r NS uRA N c E
PreP ar ean
C E R T IF ICA T E .
WORTIIWIIIEII{$UNA}TGE
I.Id
Worldwiile House, Vorley ftoad, London N r9 5x r
Telephone: +44 @)zo7zg 6 zt6
Fax:+44(o)zo72636925
Email: d.adair@worldwide.co.uk
Chairman
A,L.Galvinaca rrs
Managing Director
P.R.Erwin crs
Dire(f.ors
L.Swanne,T.R.CroweMc
H.B.Sideyua
FAX
To J.Simpson-Kent, Clarke& Co.
Ref 3982/13098
Fax 02079287111
Subject Delta shipment quotation
Pages 2
DearMrSimpson
Thank you for your fax of 15May regarding the abovecover.
I notice the net amount of the invoice is f,22,000,and payment is by letter of
credit. I would therefore suggesta port-to-port AR valued policy for which
we canquote f4.35p"/o.
We will issuea cover note as soon asyou have completed and returned the
attached declaration form.
Yourssincerely
Oadd'r+d^atr
DavidAdair
Manager
O_uotationsDepartment
212
C erti fi cate ol
InturJnce
M GINAL
CLAIMSSETTLEMENT
INSTFUCTIONS
t
Lloyds S€illing A96nl nearesl d€srinalion is
auftorb€d to adusl a^d stle on b€hal' ol ths
Un&rMners, and lo pu.chas€ on b€hall ol tha
Co@€tion ol Lbyds, in aeo.danca wilh Lloyd's
$ a n d i n g Aq u h r i o n sl o r r h e S€ ffl e m e n to tC l .i m s
Ab r o a d . a n y cl a i m w h r ch m a y a r i se o n th i s
Gniftar€.
2
ll Lbydb Agsnrs are nor ro deal wilh craims, it
lhoub be clsily marke by an 'x rr r\€ adjacgnt
L r d .,
l b r a n d ch m Fp sr sse n i l o ..A.Sh o d &C o
I Lotrn tuad. London EC9 ltr
THIS CERTIFICATE
REQIIR.ES EIIDORSEMENT
IN
IIIIE EVENT OFASSIGNMENT
IU
t
tr
ii
=
o
Certificate of InsuranceNo. c 0000/
lhiS
iS tO Ceftify
of Lloyd's a Contract effe dedb! A. short & Co. Lrl., of Lloyd's, acting on
tfr.t rhere h6 beetr depGited with the c(Mil
wEol&'dgitandScarpilt,l..wiilrutderwritersatLloyd's,foriEuranc6cttachingfheretoduringthepcriodsmmencingth€
Fi6tdayof Murch.
]e:- ed ending the TwentJ-eiEhthday ol Febracry, 199,9.both days itrclNivc, and that thesaid UnderwrileE have underlaken to issueto A. Short & O'.
j
Po{icy/Pofici6ofl8uranceatLloyd'stocoveiuptoUS$J,Ooo,000(orequlralentinothercurrencies),i^illhyan!Mesteanrcrdnd/orconveytnre.r,
".!t'ngbyai|and/or4tst,GeneralMerthttndiseand./orCuldtand/orEquiPM4toJ4nynd|urwh4tsoe|e|inclut]i'|8bu|no|limi|edk,Rit
Pans, Bictcles, Cefteruktr Sets,Raw Jute, Jurc Curdi frcm any port or ports, place or plac6 iE lhe Wtild, lo an! porl or ports, place or places in
-?La
ec a'rA,includingallteJhipnenttasoMwhenoccurring,tdlhttBodRilardScaryaLld,are€nlitledtodeclarageiNtthesaidConaractitruran6
@rrhing thereto-
\*\\S
'a2
m
x
ol
3
9o
o
3
specificd.bovc
Chts(A)
Instlub
ldhule
hslil@ CbsnMid
Inrtit@ tudi@dw
hslilub Rshemd
q
so valued subject to th. sFcidl
condirions sratcd below and Dn rhe
by tu30 es .pllcabl€. Excluding rusr, oxrd$do^, d@loraton, rwisting and bsd,.g
{Ah) (€rcluding sn&g.
(Air C€qo) (ercludim sdlEs
by Pod) o. Insrilul€ war clals€s (s€ndhg6 by Pos) as applicabb
ru$s (Al Cargo) a6 applicaue,
Chus
CmMnatb
Claus
Erclullon Cla0ss
SCARPAnD, on surdcr
of this Cedifiete.
agr€ lGses,if any,shallbeFyrbleblhcodctdBODGITAND
Utudtcn
In lhe cvdt of l@ ordamage {hich may Hult in a daim ufiler tbh lroursnc, immediate notlce musi bc give lo the Lloyd's Agent st the port or
plae vberc ahe 16 or damage is discovered in order that hc @y qmine
the goods end irsue a survey Elut. Thesuney sgentvill nomally be
the Agent authorfucd to adjut and seatle claims in accordilce with the te|G and condltloro set forth herciL bui where such Agent do6 not hold the
reqDisiie aithority, hc will be able to supply the traDe rnd addrs ofthe appropriab SetllingAgent.
(Sufleyfee i$ customarily paid by cl.imant and itrcluded in vclid claim agaiBt Unde$riters.)
SEE IMPORTANT INSTRUCTIONS ON REVERSE
Thli Cedifurr.
BODGITAND
Brols
: A Sbd
r |trn
nd vslld unl*the
D€claratlon
bc algn.d bl
Duted
SCARPA LTD
& Co ud ,
tuad, Londtr ECg 1OC
sit'"t
LLOY
D'5
Authoised
sismrory
9405CM
2r,
o
fcquctfor
g
oPafiGoult
I
C
have
GlastonPotteries
builtupa regulartrade
with customers
in North
andSouthAmerica.They
nowemailWorldwide
Insurance
askingthem
for opencoverinsurance
for theirshipments.
DavidAdair
Open cover
12
DearMrAdair
'6
E
o
As you know,we have been insuringindividualshipmentsof our chinawarewith you for some
time and have now establisheda firm customerbase in both North and SouthAmerica.
-c
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We will continueto be makingregularshipments,and wonderedif you could arrangeopen
coverfor f200,000 againstall risksto insureconsignmentsex-UKto North and South
Americaneasternseaboardoorts?
x
lll
I look fonuardto hearingfrom you.
ElaineGoodman
Export Department
GLASTONPOTTERIESLtd
Clayfield,BurnleyBB10 1RQ
Tel: +44 (0)1282 46125
Fax:+44 (0)128263182
Email:e.goodman@glaston.co.uk
I
WhydoesGlaston
Potteries
wantthe
policychanged?
234
I Whatarethe
destinations
for
GlastonPotteries'
consignments?
I DoGlastonPotteries
wanta policythat
themagainst
insures
anyeventuality,
or
things?
onlyspecific
Qrotrtba 0ot
o?afr cou.t
;Oil.DflDS
irrlt{r
ll-r.
lftuttXGt
UiLt
fL.
tral
Lra
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Y o.rl r! 5/3/2O(>crle! l l-C16893
Lirre7 March 20Ms ElaineGoodman
Export Department
Glaston PotteriesLtd
Clayfield
BurnleyBBl0lRO_
DearMs Goodman
In an opencoverpolicy,
the clientcanbecertain
thatthe consign
mentis
insuredassoonasthey
havereturnedthe
declaration
formto the
insurance
company.
Settlementmayeither
beon a monthlyor
quarterly
basis,
or per
shi pment.W hen
insurance
coverisnearly
usedup,thei nsurance
the
companyw i l l i nform
cl i entandaskw hether
theywant to renewthe
poliry.
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In reply to your email of 5 March, I am pleasedto saythat we can arrange an
AR open coverpoliryfor chinaware shipments to North and South
American eastern seaboardports.
As you proposeto ship regularly,we can offer you arate of f4.48p7"for a
total coverof f 200,000.I enclosea block of declaration forms - you would be
requiredto submit one for each shipment giving full details.
I look forward to yow confi.rmationthat these terms are acceptable.
Yourssincerely
D,rut<{AtLttr
DavidAdair
Manager, Quotations Department
Enc.Declaration forms
235
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tfficdonof
rh|ptnclilrrrd.r
oFrsrt
GlastonPotteries
havemadea shipment
to Canada.
c, l6urn,eyrocro,-,
fnt+?ili
W
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tl4lmc +aa,(olalr 46115
trolmlr r44 (ohrtr 6ttr
Eandlcgoodmant}glrttonco. u&
$rufru€hfton.Cqn
14July20-
12
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MrDavidAdair
Worldwide Insurance Ltd
WorldwideHouse
VorleyRoad
LondonNl9 5HD
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DearMrAdair
Open CoverPolicy OC515551
Pleasenote a shipment we are making to our customers,MacKenzieBros,
Canada.Details are on the encloseddedaration form, No. 11765913.
Yours sincerely
e{ah+*Qmdman
ElaineGoodman
Export Department
Enc.
t till''idrao
frT [€$ri.rn
216
tr6afl
th rll*Inol
rl sendlgglX
I,nal
File Edit
to'
Vlew
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e GIA I lE
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Help
I I FrancisKorvin
subject: I Ctaim
DearMr Korvin
Policy No. OC 515561
I am writingto informyou that a numberof piecesof crockerywere damagedin a recent
shipmentto MacKenzieBrosof Dawson,Canada.The consignment
was shippedcleanon
boardthe Manitoba,ex-Liverpool16 SeptemberYou haveour declarationform No. 117
65 9 16 .
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O n eo f G l a s t o n
P o t t e r i e s 'sihp m e n t s
t o C a n a d ah a sb e e n
d a m a g e ds o E l a i n e
G o o d m a ne m a i l s
Wo r l d w i d eI n s u r a n ce
c l a i m i n gu n d e rt h e i r
opencoverpolicy.Notice
t h a t s h es a v e st h e m a i n
d etailsfor the c laim
form and statesthat the
goodswereshipped
clean on board,
i n d i c a t i n gt h a t t h e b i l l o f
ladingshowstherewas
n o d a m a g ew h e n t h e
goodswere deliveredto
the ship.
o
12
m
xq,
3
'E
o
o
3
E.
I wouldbe gratefulif you could send me a claimform.
ElaineGoodman
ExportDepartment
GLASTONPOTTERIESLtd
Clayfield,BurnleyBB10 1RQ
Tel:+44(0\128246125
Fax:+44 (0)128263182
Email: e.goodman@glaston.co.uk
237
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12
frpf tochlm
undcrogrnGout?
polkt
Worldwidelnsurance
arewillingto accept
GlastonPotteries'claim,
buttheyofferawarning
asthisisoneof a
numberof claims
Glastonhavemade.
Noticehowthey
acknowledge
the fact
thatthe billoflading
wasclean.
woil.DuD8 tr3untxc8 Ltl
iald&
Hor.
Uorby fcrd. toda
r rt tr D
Irlephonr .44 io!?o 7t6l 6116
.t<rr .44 {orro 716; e91j
f n:x:l I Lol v :nftttt:i :l l r :<l e
<<:::i
Chaltrnaa
A L 6rMrl
tr i
^c^
|{llaojrtqDrn<tot
t I l 'rtn(rt
DlradotrL *rnac.l l
C r c rrc
X ! 3t&trr
Your lcf
orr tcf , Ml-C16910
Drtc 23 October20DearMsGoodman
PolicyNo. OC515551
o
o
I am sendingyouthe daimform yourequested inyour email of 19August
20-.We will considerthe claim oncewe have full details.
-c
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May I point out that this is the fourth time you have claimed on a shipment
under yow open coverpolicy? Though I appreciateyour products are
fragile, and that in each casethe goodshave been shipped clean,it wor.rldbe
in your interest to think about new methods of packing. I agreethat the
claims have been comparativelysmall,but infuture you willhave to ask
your customersto hold consignments for our inspection to assessthe cause
of damage.
x
|ll
I should also mentionthatfurtherclaims
the policyis renewed.
mayaffect yourpremium when
Yourssincerely
Fraath Kordn
FrancisKorvin
Claims Manager
Enc.Claimsform
r^:
WhenwillWorldwide
lnsurance
consider
theclaim?
238
WhydoesWorldwide I WhatdoesMrKorvin
Insurance
think
meanbymayafect
your premium?
GlastonPotteries
havemadesomany
claims?
Whichwordsin the
letterhavea similar
meaning
to the
following?
r thinkabout
b bringtoyour
attention
c ways
d thecostof
insurance
\.
{.
ti:
j-
Rejectionof claim
WORT.IIWIIIEI}ISURA}|EE[Id
Worldwide House,Vorlcy Roed,London xr9 5x o
ph one: +44 @)zo72636zt6
Tele
Fox : +44@\zo72636925
Email:f korvin@worldwideco rrl<
C hai rman
A .L Gal vi nA cArrs
Managing Director
P R .E rw i n cl s
Directors
L.S w anne.T.R
C row eMc
H B SideyMA
YourRef:
OurRef:M2-D23140
Date:28 october 20-
ln thisletterWorldwide
Insurance
rejecta claim
onthe grounds
thatthe
billof ladingwasnot
clean.
Notethat the
exoorterisentitledto
callin hisownassessor
to inspect
thedamage,
andthat if thereisa
dispute,the
casewould
besettledby
I
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o
AR BIT R AT ION .
MrT. Shane
ExcelsiorEngineeringplc
Valley Estate
Birkenhead
MerseysideI417ED
'i,2
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3
E.
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DearMr Shane
PolicyNo.AR 66L72241
I have now receivedour assessor'sreport with referenceto your claim
CF37568in which you askedfor compensationfor damageto two turbine
engines which were shipped ex-Liverpoolon the Freemont onTIOctober,for
deliveryto your customer,DV. Industries,Hamburg.
was clausedbythe captainofthe
The report statesthat the B/L,No. 553719,
vessel,with a comment on cracksin the casing of the machinery.
Our assessorbelievesthat thesecrackswere the first signsof the weakening
and splitting of the casing during the voyage,and that this eventually
damagedthe turbines themselves.
I regret that the company cannot acceptliability for goodsunless they are
shippedclean (seeClause26Bofthe policy).
I am sorry that we cannot help you further.
Yourssincerely
Franrl,s Korri,rt,
FrancisKorvin
ClaimsManager
R e g i s t e r erdn En g la n dNo 6 9 r 5 6 t4
VAr No 56 34127
239
Pointsto remember
o
t
E
g
I
E
12
1 Insuranceis designedto covera business
or individual againstriskssuchasloss,
damage,or injury. Numerous types of policy
are availableto offer coveragainst various
eventualities.The client has to decidewhich
hazardsapply.
2 Indemnification is the coverwhich allows
compensationbecauseof lossor damage,
and is calculatedon the market value or
depreciationvalue of goods,not their
original value.Tobe insured,a client
completesa proposalform, and the
premium is then assessed
and quoted (in the
UK,in penceper cent).On acceptance,
the
client is issuedwith a covernote, which
gives coveruntil the policy is ready.
3 Marine insurance is governedby Institute
CargoClauses(or Lloyd'sOwn Clausesif the
policy is issuedby tloyd's). Shippersare
offered a variety of policies to cover
shipments. However,most exporters ship
under an all-risks valued policy,which
coversthem against most eventualities and
allows them compensationfor loss or
damage,plus ro%.
4 Open coverpolicies are usedwhen exporters
make regular shipments.Eachshipment is
declaredand the insurance company covers
it underthe agreement,
240
242 RESERVAT ION S
242
242
242
243 APPOINT M ENTS
243
243
244
244
244
245 HOSPIT AL IT Y
245
245
246
246
246
247 SPECIAL OCC A S ION S
247
247
247
248
248
248
248
249 Pointsto remember
o
tr
o
tt
tr
0
CL
n
o
o
=
o
o
c
g
C'
I
.9
RE SERV A T I O NS
Reservations
canbe
madeby letter,fax,
or
email,asappropriate.
lt
isimportantto check
that you havegiventhe
details.
correct
Air travel
0
CL
Pleasewould you make two BusinessClassreservations,Iondon-Kobe
return, in the names of Mr P.R.Dell and Ms B.Newsome.Outwardflight
DA164,departing Heathrow at 10.05on Wednesday12June,return flight
DA165,departing Kobeat 20.30on Tuesday18June.
Pleasesend the tickets for my attention and chargeto our account.
Beth,Cowan
13
tr
This is to confirm our phone conversationthis morning.
Yourssincerely
=
o
t
o
It
DearMrWood
Beth Cowan
Traintravel
DearMsMeek
I
o
o
I
g
To confirm the arrangementswe discussedthis morning, would you please
book a return ticket, with couchette,in the name of Ms JeanMiles for
London-Paris-Zagreb,depart Thursday L8July,and returning
Zagreb-Paris-London,depart Saturday 3 August?
CL
E
G
x
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The reservation shouldbe in a non-smoking compartment.
Pleasesend your invoice to JaneLewis in our FinanceDepartment.
Yourssincerelv
l. Meltta,
S.Mehta(Mr)
Hotelreservation
DearMsOkada
Pleasecould you reseryetwo ExecutiveGraderooms from 3 Juneto
18lune inclusivefor Mr P.R.
Dell and Ms B.Newsome?
Iwould be grateful if you could confirmthese reservationsby return.
With best regards
BetluCowat'u
BethCowan
242
A P P OIN TME N TS
DearSir/Madam
We are holding our annual conference this year in Kyoto and are looking for
a hotel which can offer us accommodation and conferencefacilities from
Thursday 14November to about 4.00 p.m. on Sundayr7 November.
We require accommodation and full board for 50 delegates,15of whom will
be accompaniedby their spouses.Therefore,we will need 45 single and 15
double rooms for three nights. We would also like coffee and tea to be
senredto the delegatesmid-morning and mid-afternoon on each dayof the
conference.
=.
I
tl
o
speed
Emailoffers
andflexibilitywhen
arrangingappointments.
!,
=
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o
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I
a
Confenncc
frcillttcr
o
|D
I
!
o
I
q
o
I
ft
o
For the sessionswe will need a room with fulI conferencefacilities
(including PowerPoint),that can accommodate60 to 70 people.
13
Pleasewould you send us a list of your tariffs and let us know what
discounts you allowfor block bookings?
Ilf
x!,
3
Eo
Yoursfaithfully
lt
W. tlurort,
W.Herron(Ms)
!
o
d
u
o
3
ro
3
n
o
DearMrGomez
lleklng rn
rPPolntmcnt
Couldyou contact our Production Director,Mr Norman Luman,to discuss
the possibility of setting up a contract for you to supply us with steel over
the next year?
He willbe in his office all nextweek, and if you could email ortelephone
him he would be glad to arrange a meeting with you.
Bestwishes
Pat Narlt
Pat Nash (Ms)
PAto Production Director
24'
o
v
t
!
o
Confirmlngan
eppolntmcnt
E
DearMrGomez
Mr Luman has askedme to confirm the appointment you made to see
him at our Head Office,25City Road,London \Ml at 11.30a.m.on Tuesday
2 August.
o
r
I
g
o
I
I
He looks forwardto meetingyou.
o
o
tr
s
Bestwishes
o
Pat Narlu
n
=
PatNash (Ms)
PAto Production Director
12
.J
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I
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!
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o
B
6
E
Crncclllngen
eppolntmont
DearMs Nash
Unfortunately, Mr Gomezwill not be ableto keep his appointment with
Mr Luman on Tuesday2 August. An urgent matter has come up in our
Lisbon ofrce which needshis immediate attention.
o
IJ
sB
E
G
x
He offers his sincereapologiesfor the inconvenience,and will contact you
as soon ashe returns to London.
rg
Bestwishes
Marh, Vuttura
MariaVentura
Assistantto Diego Gomez
Follow-uprftcrrn
eppolntmcnt
DearMrLuman
Just a Iine to say that I was glad we were finally able to meet yesterday.
I am also pleasedwe were able to work out the main points of our contract
so quickly and come to a mutually acceptableagreement.
Iwill callyou in afewweeks to reviewprogress.
Withbestwishes
Dujo Qomzz
DiegoGomez
244
DearMr Deksen
Thank you for your last consignment.Youwill receiveour next order in a
fewweeks.
I am writing to askif you could offer assistanceto our OverseasSales
Manager,Mr MichaelHobbs,who wiII be visiting Oslofrom 1to 17May?
You may remember that when you were here a few months ago I
mentionedthat we intendedto expandour export sales.We arenow
Iooking at market potential in Scandinavia,and Michael Hobbs'strip is part
of this research.It would help us a great deal if you could introduce him to
wholesalersand retailerswho may be ableto advisehim about the types of
product that we would need to offer in your market. He would also be
interestedin finding out more about marketing methodsand importing
procedures.
I understand that you are very busy,but I would much appreciateany
assistanceyou can offer and will, of course,reciprocateas and when the
opportunity arises.
Yourssincereiy
Frank wuford,
fTANK WCIIOIO
H OS P ITA TITY
3
Letter,
fax,or emaiI can
beused.Lettersaremore
appropriate
for more
personal
invitations
and
replies.
g
5
!l
5
o
o
tr
5
o
d
!
R equest for
hospi tal i ty
o
I
CI
o
f
A Britishcompany,
whichwantsto expand
itssalesto Scandinavian
countries,
asksa
business
Norwegian
associate
help
to provide
andhospitality
duringa
visitto Norwaybythe
company's
sales,
manager.
Noticethat
the letterdoesnot open
but
with the request,
with a reminder
of the
companies'association.
o
13
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xt,
3
g
o
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o
!
o
I
CL
o
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o
Managing Director
.r' ttl r of th.rnks
DearMr Deksen
Thank you very much for assisting Michael Hobbswhile he was in Oslo
I know he has alreadywritten to you expressinghis gratitude, but I would
Iike to add a word of appreciation myself. The introductions you made for
him and information he gainedwill be extremelyuseful in our
Scandinavianexport programme.
If we can return the favour on somefuture occasion,pleaselet me know.
Yourssincerely
Frank WefforcL
FrankWelford
Managing Director
245
!
o
I
tr
o
lrwltation
DearMrOkada
tr
o
Ihave pleasure inendosing aninvitationfor our annual award ceremony,
whichwilltate place on14December.Asone of our distinguished exstudents,we wondered if you would be willing to distribute the awards,
and give a short addressbeforehand on a subject ofyour choice?
A
6
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I
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tr
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v
We would also liketo inviteyouto aformal dinner afterthe ceremony.
This willbe held inthe Principal'sLodgings,at 6.30for 7.00p.m.
We would be delighted if you are able to acceptour invitation. I look
forward to hearing from you.
t^
=
Yourssincerely
13
DatA HoFu
I
E
DavidHope
Principal
E
Enc.
o
!
o
o
t\
6
o
o
t
sg
Acceptintan
lrwitetion
DearMrHope
Mr Okadahas askedme to vwite saying he is honoured to acceptyour
invitation to distribute the prizes and speakat your annual award
ceremony on 14December.He also has much pleasurein acceptingyour
kind invitation to the formal dinner afterwards.
E
G
x
ul
He has fond memories of the collegeandwelcomes the chanceto visit it
again.
He suggestsspeaking on the topic'Changing technology in the next
decade'.Hewould appreciateit if you couldlethim knowwhetherthis
would be an acceptabletheme.
Yourssincerely
Vo*n tto
Yukolto
PAtoMrOkada
tledlnlngrn
inYitftkrn
DearMs Lee
Mr van Ek would like to thank you very much for your kind invitation to
attend the reception being held next month at your embassy.
Unfortunately he will be in the United States at that time. However, he
sendshis apologies,and hopesto be able to attend on another occasion.
Els Spruit
PAtoMrvanEk
246
DearMr Corney
I would like to offer my congratulations on your election as Chairman of
our TradeAssociation.
No one has done more to deservethe honour, or has worked harder to
promote ourinterests. Youcan count on myfull support, andthat of my
colleagues,during your term of office.
I wish you every successfor the future.
Yourssincerely
Arlikg,Butron,
Mike Benson
Chief ExecutiveOfficer
S P E CIA t
occA S toN S
Noticethatthis
correspondence
isoften
quitebrief.When
expressing
wisheson
special
occasions,
it is
betterto writesimple,
sincere
messages,
and
avoidexaggeration.
For
personal
messages,
a
letteror cardisoften
moreappropriate
than
anemai l .
Congntulations
ofl an
aPpointment
Congratulations
arealso
bestgivendirectly,
not
bysomeone
onyour
behalf.
=.
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3
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5
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3
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0
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DearJack
I d like to congratulate you on being appointed Depadment Manager.
I know you've worked very hard to achievethis well-deservedpromotion.
I wish you the very best in a job where I'm sureyou will be successful.
Saa/r*
Sandra
Congrrtulatlonr
on I Promotlon
Thetoneyou
usew i ll
dependon howwellyou
know theperson.In
th is
note,thepeopleknow
eachotherquitewell
andareonfirst-name
terms.
leevlng
DearRob
I amwritingto congratulate you onyour newappointment andto thank
youforyour contributionto making this department so successful.
Yow future employersare very lucky to have you joining them, and I am
sureyou will carry your successhere over to the challengesof your new
position.
With very best wishes
Da,u,ubn
Damien
247
g
!
tr
o
lllnes or accident
DearYuko
t
|l
Wewereverysorryto hearaboutyourillness.Takecareof yourself.
Weall sendour bestwishesfor a swift recoveryandlookforwardto seeing
youbackagainsoon.
o
A
Ut
o
o
9
6
5
With verybestwishesfrom everyonein the SalesDepartment.
o
o
tr
!
Su.e
o
Sue
6
G
13
Rctiring
DearJack
o
I d like to take this opportunity to thank you for all your dedication and
commitmenttothe work of the ProductionDepartment.Itwillbe
extremely difficult to replaceyou.
E
!
o
E
o
e
5
g
May I offer you my best wishes for a long and happy retirement.
g
sg
Martin Sluuttt^on
F
G
x
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Martin Shannon
Meregc of
condolcncc
Messages
of condolence
shouldneverbewritten
bysomeoneelseonyour
behalf.ln these
circumstances,
it is more
appropriate
to writea
letterratherthan
send
an emailmessage.
DearMrWatanabe
I was saddenedto hear about the death ofyour partner, Mr Hiroshi Tanaka,
and would like to offer my condolences.He was a fine person and a wellliked man who will be greatly missed by all who knew him.
Pleasepassmy sincerestsympathies to his family.
Yourssincerely
gun^ald reA
Bernard Fell
SceronelSrcctlngr
greetingsoften
Seasonal
comein the formof
greetings
cardsand
messages.
Beawarethat
peoplein different
countriesorfrom
differentreligiousor
culturalbackgrounds
maynot shareyour
festivalsandholidays.
I
r+8
Dear Mr Peters
May I offer my very best wishes for the New Yearto you and your staff ?
I hopeyou enjoythe holiday andlookforwardto workingwith you again
nextyear.
Pa,hLDarie,t
PaulDavies
Pointsto remember
1 The conventions of social correspondence
are much the same as those for business
correspondence.
Youshouldconsiderthe
relationship between the writer and receiver
and choosenot onlythe most appropriate
language but also the most suitable
medium, e.g.letter,card,or email.
2 Lettersof invitation should state clearly
where and when the event will take place,
and give some indication of its formality so
that guestscan dressappropriately.
3 When cancelling an appointment, you
should say why you are unable to keep it and
offer an alternative day / time if possible.
=
6
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4 Letters of condolenceor congratulation
should never be written on someoneelse's
behalf.
on special
5 Personalcorrespondence
occasionsshouldbe short,simple,and
sincere.
249
251 M E MOS
2 5 1 Layout
251 Cuideto contents
252 Length
253
254
z>)
256
257
258
259
26o RE P OR TS
26o Types
of report
2 6 o Structure
ofa report
261 S ummary
262
263
264
Pointsto remember
26s Memos
265 Reports
MEMOS
Memos arewritten internal communications
which adviseor inform staff of company
policiesand procedures.
They areusualiy quite
formal and impersonalin style.Memorandum
is the full term, but the abbreviatedform is
usuallyused.
Memosmaybe put on a noticeboardfor
everyoneto see,or circulated in internal mail.
In the latter casethe receiver/smay be askedto
sign the memo to acknowledgethat they have
readit.
Memos may alsobe postedon internal email
(the Intranet).However,as email is an open
accesssystem,this method is not suitablefor
confidential communications.In addition,
someemployees,e.g.non-administrativestaff,
might not be ableto accessemail regularly and
might not seethe memo.
Memos can addressmany different subjects,
from informing staff of a retirement to
announcing important administrative or
structuralchangesin the company.
Layout
Companiesoften useheadedpaperfor
memos.This giveslessinformation aboutthe
company than the letterhead for external
but indicateswhlch
correspondence,
has
issued
the memo.
department
A memo shouldstatewho it is to, who it is
from, the subject,and the date.It may alsobe
signed.
Important points or long lists of points
areusually bestpresentedusing bullets (.)
or numbers.
Gu i d e to e o n i { j n ts
Memos shouldhavean appropriatetitie, not
onlyto indicatetheir topic,but alsofor fi,ling
=
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PuIposes.
(t) Introductionof shiftwork
(z) A nnual audi t
(3) Pensionscheme
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Introducethe subjectin the opening
-^.-^---L
Para6LaPLr
(t) A shtftworksystemis to be introduced
nextmonth.
(z) Theannualauditwillbeginon
t March zo-.
(3) A contributorypensionschemeis to be
introducedasJromt IuIy zo-.
"44
Explainto staff how they will be afiected.
(t) TheshiftworksystemwiII affectaII
employeesin this branchoJHalliwell &
Fischerand wiII be introducedon a twot4.oo
shift basis:o6.ooto t4.oohours,'and
to zo oo hours.Your
department
managerwill informyou...
(z) Theauditorswill requireofices,which
meansthat somemembersof stafrwiII be
temporarilytransferredto other ofices in
the building...
(3) Membersof staf whojoin thepension
schemewill contribute6%of their gross
monthlysalary.The
contributionswiIIgo
towardsa retirementbenefitplan which
at 6o will offera pensionof 7o%of gross
sal ary...
Employeesshouldbe told when changeswill
take place,or a policy will becomeeffective.
(t) Theschemewilltake effectfrom
t Februaryzo-.
(z) Theannual audit wiII beginon t March
and shouldtakeaboutthreeweeks..
$) Deductionof contributionsto the scheme
wiIIstartinthe monthendingz8IuIy
20-.
A guide to the contents of three example
memos,(t),(z),and (3),is given below.They
couldbe sent by email,but it might be
advisableto put (r)on a noticeboardtoo,sothat
it reachesstaffwho do not haveaccessto
email.
Statewhich staffwill be affected.
(r) AII productionstaff,supervisors,
and
factory managerswiII be involved...
(z) Theauditwill affectallbranchesof the
company.Stafrwill beexpectedtoexplain
the lossof any equipmentor damageto ...
251
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$) ThepensionschemewiII only affectthose
membersof staffwhowereemployedon
or beforet lanuary zo-. Employeeswho
joined aJterthat date will be includedin
the schemeassoonas they have
completed six months'full-time
employment.
Onceyou havementioned how andwhen stafi
will be afiected by an event or chan ge,whereIt
will operate,and who will be involved,you
must explain what shouldbedone.
(r) Pleaseseeyour supervisoror department
managertofind out whichshiftyou wiII
beworkingonfor thefrst month.
Another memowiII becirculatednext
week,explaininga bonusschemewhich
willbe introducedas nart of the new
arrangement.
(z) Pleaseseeeitheryour supervisoror
departmentmanagerfo rfufthe r
information on what materialsthe
auditorswill want to see.
(3) Everyoneincludedin the schemewiII
receivea booklet,Pgot, giving detailsoJ
how thepensionplan wiII work and what
benefitsthey/ their beneficiaries
will
receive.Twocopiesof a contract will also
beenclosed.You
shouldsign both copies,
and return one to your department
managerbeforezt Junezo-. Pleasekeep
the otherfor your own records.
Finally,if you think the memo might not be
understood,advisestaffwhere they can go for
an explanation and how to communicate their
commentsor complaints.
(t) If you haveanyproblemswith your shift
allocationpleasecontactyour supervisor
or departmentmanager.
(z) IJ thereareanyproblemsyou would like
to discussbeforethe auditors arrive,
p Iease contacty o ur dep art m ent
manager.
The
bookletshouldexplainthescheme
$)
clearly,but if thereis anythingyou do not
understand,or iJyou are alreadyin a
pensionschemethat might beafrectedby
thisplan,pleaseinform your department
managerassoonaspossible.
252
Length
Memos canbe short or long.They can deal
with a number of different points but these
shouldbe connectedto the sametopic.For
example,a singlememo which tried to deal
with canteenfacilities, punctuality, and a new
accountingsystemmight confuseits readers.
It would be betterto write a separatememo for
eachtopic.
Memoto
department
managers
r (| IY s D lsr H tP B norE n slT n
123- 5
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LOW TAND STREET,LONDON Ec l 2R H
+44(o)2o76719873
rEtEpHoNE:+44@)zo767t.FAx:
IIBIIOBANDUII
To
Department managers
14t
From The Chairman
Topic Donald Crayford
Date
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26 November20-
3
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Strictly Confidential
Pleasesign to confirm receipt.
3
o
Donald Crayfordhas decidedto retire from his position as ChiefExecutive
on 20 Decemberthis year.We have consideredseveralcandidatesfor his
replacement,but no firm decisionhas yet been reached.However,we hope
to make a confldential announcement by the end of this week at a private
meeting 6f department managers.
JessicaRenfrew
Thomas Dillon
FrancescaAmis
WilliamThornton
Travis Shiran
Whywouldyounot
sendthismemoby
ema i l ?
Wh yd o y out hink t he
memoisstrictly
confidential?
Whatarethe
department
managers
asked
to do?
W h e nw i l l the
ManagingDirector's
probablybe
successor
announced?
Whichwordsin the
memohavea similar
meaning
to the
following?
a secret
b a numberof
c peoplehopingto
get ajob
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257
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Vlrlt of a curtomer
S
E
F
p
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=
CoventryComponents
some
areexpecting
importantvisitorsto
theirfactorysothey
circulatea memo.
To
Allstaff
Date 1July20-
From HenryWoodfield
Topic ZorbraIndustries visit
14
From 8 to 1l July Mr JasonZorbra of ZorbraIndustries,Athens, and two of his
colleagues,will be visiting the factory. ZorbraIndustries has recently placed
a three-year contract with us to supply them with components.
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Although Michael Hobbs,out OverseasSalesManager,will escorttheni, it
might be necessaryfor individual employeesto answer questions or
explain production proceduresin their section.Therefore,pleaseaskyour
stafito be as helpful and informative as possible.It will also be necessary
for lunch hours and breaksto be re-arrangedsothat there is always
someoneavailablein eachsection.
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Yourco-operationin this matter is essentialand will be appreciated.
I Wh owilles c or t t he
visitors?
214
2 W h a ta re e mp l o y e e s I W hyi sthei rhel pso
askedto do?
important?
4 W hi chw ordsi nthe
memohavea similar
to the
meaning
following?
a partsofanengine
b waysof doing
things
c help
d veryimportant
Retirementof
e chlcf exccutive
officcr
I(I] YSf, N SHIPBNOKD IIS T,TI)
r23- 5
LOWTAND STREET,LONDON EC1 2R H
rELEpHoNE:+44@)2o767'r.FAx:
+44(o)2o767t9871,
IIf,IIOBANDI]II
To
AII staff
From
The Chairman
Topic
Mr D.G.Crayford
Date
2 December20-
Noticehowthi,
memo coversa number
of different points
connectedto the
retirementofa ceo:
it announcesthe
retirement,advises
everyoneofthe new
appointment,tha nks
the retiringceo,
welcomeshis successor,
a n d a n n o u n c e sa
B
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meeting.
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Donald Crayfordwill retire as Chief Executiveon 20 December.
As many of you may know, Donald Crayfordhas been with the company
for over 20 years.The ro years during which he has been CEOhave seena
period of unprecedentedgrowth, despite difficult economicconditions in
someof our overseasmarkets.
3
6-
3
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3
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Diana Hawks has been appointed CEOwith effect from 2lanuary 2O-.
I am sureyou wlll join me inwishing her every success.
Would all department managers pleaseattend a meeting in the Main
Meeting Room on Monday 6 Decemberat 15.30 hours,where they will be
introduced to Diana Hawks.
255
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Industrialchangc
Thismemodescribes
a
changein the
workplace.
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PantonManufacturingLtd
PantonWorksI HounslowI MiddlesexI rw6 zaq
FENTtrN
rErEPHoNE+44@)zo8353orz5
FAcsrM I rE+44 (o)zo83535783
rmarl d.panton@panman.co.uk
ME MO
l4
To
AII supervisors
From
TheChiefExecutive
E
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Date
6February20-
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Subject Newmachinery
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As part of the company'sexpansion programme,we are introducing RS100
andDS100machines whichwill increaseproductivityand reducecosts,
thus making us more competitive in overseasmarkets.
The newmachinerywill not in anyway affect job security,andthere willbe
opportunities for retraining for all production staff.
A full consultation processhas taken placewith the Union, andcooperation
has been agreedin installing and maintaining the new machines.
Pleasecall a meeting of yourteam members onWednesdaymorning at
9.30a.m.to informthemof thesechanges.
Er
.9
6
3
3
o
Whyarethe
machines
being
introduced?
Whatdoesthe Chief
Executive
meanby:
Thenewmachinery
will not in ony woy
offectjob securitlr?
Whohave
Management
consultedaboutthe
introductionofthe
machines?
Whichwords in the
memo havea similar
meaningto the
following?
r makesrnaller
b irffcre
< harn-gwsEs
Rcdundancies
3
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3
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Princeof WalesRoad
Shefheld
s9 4Ex
L, Franksen
Merno
Allemployees
From
TheChiefExecutive
Date
15July 20-
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14
Subiect Cutting output and redundancies
Following the meetings last week I am writing to confirm that, with regret,
we have to announce a 10%reduction in the workforce. The reason is that
rising production costsand a fall in demand for our products have caused
the company to run at a lossfor the past three years.The fdl in demand is a
result ofcontinuing stagnation in the industrial sector.
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We are now therefore, in a period of consolidation,during which time we
hope that the necessaryreduction can be achievedby voluntary
redundanry and early retirement.
Thoseemployeesaffected will meet individually with their managers over
the next two weeks.
I Whyisthecompany
reducingthe sizeof
the workforce?
I Howmanypeople
will beaffected?
) Whatdoesyoluntory 4 Whenwillthose
redundancy
mean?
affectedbeinformed?
rO
c
rt
o
t
2t7
llemoebout
rmoklnt
Thismemohasbeen
postedon internal
email,theIntranet.
copiesof
However,
memosdescribing
changes
in offce
regulations
shouldalso
beputon noticeboards
'to ensure
that members
of staffwhodo not have
access
to emailare
informed.
Arial
We have been reviewingour policyon smokingin the workplace,which currentlyallowsstaff
who haveindividualofficesto smokeunlessprohibitedby fire regulations.Smokingis also
permittedin ten outdoorareas providedthat smokedriftingthroughopen windowsdoes not
inconvenienceother staff.
Sincethis policywas drawn up ten yearsago,there has been much medicalresearch.
Passivesmokingis now knownto be a serioushealthhazard,significantlyincreasingthe
chancesof lung cancerin non-smokers.
,.,
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Bearingin mind boththe weightof medicalevidenceand the legalduty we haveto protectthe
healthand safetyof employees,we will be makingthe followingchangeto our smokingpolicy:
Smokingwill no longerbe permittedin individualofficeswith effectfrom 1 November20-.
We appreciatethat this decisionwill affecta minorityof staff and that for them this changewill
be difficult.Therefore,we will providesupportand practicalhelp to individualswho wish to
stop smoking.Pleasecontactmy secretary,MadeleineRichards,for furtherdetails.
FrancesEaston
Healthand SafetyOfficer
259
o
REPORT S
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Thetwo main types of report are:
- Regularreports,which companiesprepare
monthly, quarterly, or annually, and which
give information, e.g about sales,income,
credit status,or the company'sperformance
' seepage253.
- Ad hocor specialpurposereports,which are
written to describeor explain a programme,
e.g.the introduction of a new company
programme ' seepage262,or the result of a
credit investigation.
AII reportsshouldbe planned carefullyand
drafted in outline beforethey arewritten. You
needto considerthe purposeof the report so
your readerknows what you aretrying to
achieve.The report should be comprehensive,
and aimto include everyrelevantpoint; it
shouldbe logical and intelligible sothe reader
can understandit easily;and it should be
accuratein all facts and details.
\lr
,
i,,
I
r
Whether the report is short or long,the
structurewill be similar
Title
This should explain exactiywhat the report is
about.
- Thefutureof smallbusinesses
underthe
ConsumerProtection Acts
- Theresultsof an investigationinto the
damageto two turbine enginescoveredby
policyan 66t 7zz4t
- Fossilfuelsas a sourceof energy
lntroduction
This should summarizethe content and
referencesof the report,i.e.what it will cover,
why it is being written, and possiblythe
methodsusedto collectthe information. Often
it is easierto write the introduction oncethe
body of the repod has beencompleted,when
the writer's ideasare clearer.
z6o
- Thisreportdef.nessmall businesses
as
companieswith a staff of lessthanthirtlr
employees
and an annualturnoverofnot
morethan f4.5 million....Wehavebeen
concernedaboutthe effectsof the Consumer
ProtectionActsand thefinancialposition of
our membersif theyaresued... We
investigatedthe situation coveringtheyears
L9-
tO 2O-.
Main body
This section,in which the topic of the report
is examined,will includethe factsyou have
collectedand your sources.Thesecanbe either
P R IMA R Y SOU R C E S , Whi C h A TCdi TC C t
interviews and questionnaires,or sEcoNDARy
souRcEs suchasbooks,magazines,
and
newspapers.
- Weusedtwosourcesof information:a
questionnaire
sentout to smallbusinesses
in
areas,andgovernment
the designated
publicationscoveringtheyearsry- to zo-.
A copyofthe questionnaireand a list of
publicationscan befound in the Appendix
Conclusions
Conclusionsarethe ideasyou haveformed
from the evidenceexaminedinthe main body
of the report.Whereasfactsare objective
statements,conclusionsinterpret and
comment on the facts and draw togetherthe
different aspectsofthe situation asyou seeit.
- From the evidencewe haveexaminedit
appearsthat the new legislationwill havethe
following effects:
with an annualturnoverof not
1 Businesses
morethan f4.5 millionwillfind that . ..
in groupsa, aL ct,and cz will try
2 Customers
to ..
3 Electricaland mechanicalproductswill
certainly. ..
Recommendations
Youmay or may not havebeen askedfor
recommendations.If you have,you should
explain that the conclusionslead you to
recommenda particular course,or courses,of
action,Youmight alsopredictthe outcomeof
following, or not following, a particular course
of action.
- WeJeelthatasconsumers'rightsare
strengthenedby the legislationit would be
betterfor small tradersto considermore
extensiveliability insurance.Wealsobelieve
th e ys h o u l d ...
Headings
In a short reportyou might needonly afew
headings or even no headings at all. However,
in a longer report a more complicated
numbering systemmight be used.Two
examples are given below.
- Introduction
Procedures
Mainpoints
(a)
S ummal y
Busy people do not always have time to read all
the reportsthey receive,especiallyifthey are
very long or do not affect them directly.
However,it may be useful or important for
them to know the gist of what the report
contains,and soit is a goodideato include a
brief summary of not more than one pageat
the beginning of your report.The summary
should explain why the report has been
written and contain onlythe main findings,
conclusions.and recommendations.
3
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(D)
k)
(i)
(ii)
Conclusions
Recommendations
- 1. Introduction
2 Data colledion
2.1 Questionnaires
2.2 Interviews
2.3 Focusgroups
3 Mainfindings
3.7 Internetusers
3.1.1Age group t83o
3.1.2Age group3o-So
3.1.3Age group50 +
Longreportsmaybe made up of many
different sections.Itis bestto include a
contentslist with pagenumbersfor easy
reference.They may alsoincludetables,
graphs,Iists of references,and
acknowledgementsthanking peoplewho have
helpedin the writing of the report.Theremay
alsobe an AppENDrx giving extra information
not requiredin the main body of the report,e.g.
a copy of a questionnaire,transcriptsof
interviews.
261
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Reporton
lnternetsa!es
Thisreportfroma sales
that
directorsuggests
hiscompany
should
i n tro duconline
e
s elling .
Noticethat thisisa
a m uc h
su mm ar y of
longerreportcontaining
data.
statistical
SP Wgrslesafiers pI€
Memo
To The BoardofDirectors
From DerekLogan,SalesDirector
Date 15October205ubject Introduction of Internet sales
'|4
The SalesDepartmentresearchteam cameto the following conclusionson
the issueof Internet sales.Further statisticaland technicaldata can be
found in the full report (pages4-30).
t
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Market
Internet saleshaveexpandedsteadilyin our marketsin recentyearsfor
three main reasons:(1)the rangeof goodswe can offer in a virtual
warehouseenvironment,(2)convenience,
and (3)increasedsecuritywith
the developmentof digital signatures.The main areaof expansion- over
21%in the period concerned- has beenin clothes,especiallychildren's
clothescoveringthe agegroupsof 4-11years(seestatisticalanalysison
page9).
CL
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ul
With regardto salesof linens and generalfurnishings,there has been a 6.7%
increasein salesoverthis period We would like to monitor this overthe
next 1.2months to seehowthese marketsdevelop(seepages28-9).
Finance
If we concentrateon the garment area of the market, supplying all age
groups,we estimatean increasein our annual budget of 4.8%,which
includesadministration,warehousing,expandingstock,advertising,and
the capital neededfor new technology.This will increaseour present
turnover in this areaby 7/" overa two-year trial period (seepages15-18).
TheFinanceDepartmentsuggeststhat this increasein capitalinvestment
should comefrom shareissuesrather than loansbecause,in the caseof the
Iatter,increasinginterestrateswill reduceprofits.
Conclusions
With our main competitorsalreadyin this market,and its potential for
international sales,we recommendthat we should implement a new
Internet strategyas quickly as possible.Iwould suggesta meeting before
the end ofthis flnancial vear.
e
Whydothe research
is
teambelievethere
a ootentialmarketin
lnternetsales?
Whichisthe best
marketfor SP
Wholesalers
to enter?
z6z
What do they want to
do about s ellingt heir
other oroducts?
How much would the
companyneedto
invest?
Wherecouldthe
companyobtain
the
moneytoinvestin
the project?
WhendoesDerek
Logan
thinktheboard
shouldmeetto
discuss
the project?
Whichwordsinthe
reporthavea similar
meani ng
to the
following?
a information
L. createdby
computer
c total business
in a
givenperiod
=- l ul
=
n
/=
l\l
se no He=7ld o
Edit View
to-
Subject
h6
Iro
lta
r0 iM
ol
Lnsert Fgrmat fools
BI
G.
I
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|tt( J'-
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| l'l ootions.. a-l
/\g-e
mt'sqnr*nterf,y
ret]ort
Thisreporthasbeen
produced
byMohamed
i sB ri t ish
K assi m,w ho
Crystal's
agentin Saudi
Arabia,
for Nicholas
Jay,
theManagi ng
D i r ect or
ofthe company.
>5eepagesr74-r76.
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| | nicrrotas.tav
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Marketresearchsummary
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Youwillseefromthe attachedaccountsthatturnoverin the pastninemonthsof tradinghas
beendisappointing.
Thereare a numberof reasonsfor this:
1 Sales
Althoughthereis a steadydemandfor the mainornamentallines,I thinkthereis a much
largermarketpotentialfor tableware,includingglasses,jugs,and servingbowls.lt might
be usefulif youcouldsendme a widerrangeof theseproducts
as samplesto showcustomers.
2 Advertising
Our agreedadvertising
budgetof f7,000 is not enoughto promoteyourproducts,even
thoughwe use only newspapersand magazines.lt wouldbe usefulto doublethisbudget
intoneighbouring
wherethereare good
witha viewto extendingadvertising
countries,
opportunities
Youwillseefromthe attachmentconcerningthe
to becomeestablished.
marketresearchI havedonethroughquestionnaires
to retailers,
thatthereis a positive
responsein Jordan,Kuwait,and the Emirates.
3 Competition
is from manufacturers
in the Far
a As I am sureyou are aware,yourmaincompetition
East,who undercutyourpricesby at least40% Whiletheydo notsellthe samequality
products,a numberof largecompaniesare becomingestablished
hereand are likelyto
the
starttargetingthe upperend of the marketwith betterqualitygoods.I am monitoring
situationand willletyou knowof any developments.
b Somecompetitors
copydesigns,so it is importantfor us to get yournew designsas
quicklyas possibleand putthem on the marketfirst.
4 Fi n anc e
a Yourcreditlimitof f2-3,000 shouldbe at leastdoubled,as thisis a very lowfigurein
this market.As yourdel credereagentI am quitewillingto coverthe riskslnvolved.
b In my view,the letterof creditpaymentsyou requiredo not allowsufficienttimeto clear
accounts.I wouldrecommendthat you considercredittermsand paymentover45 to
60 days by term draft
I lookforwardto yourcommentson thisreport.
MohamedKassim
i H owwo uld yo u
describebusinessfor
BritishCrystalin
S au d iArab ia?
I n whic h par t of t he
marketdoesMr
Kassimsuggestthere
may be opportunities?
How m uc hdoeshe
r ec om m endt he
f ut ur e adv er t is ing
budgets houldbe?
Whichother markets
is M r K a s s i m
considering?
Wh e r ei st h e
c o m p e t i t i o nc o m i n g
from?
6 What sort of
concessions
doesMr
Kassimrecommend
M r J a y s h o u l dm a k e ?
7 What is attachedto
the email?
Whichwords in the
r e p o r th a v ea s i mi l a r
m e a n i n gt o t h e
following?
a everythree
months
[i list of questions
c restrictionon
moneyborrowed
'{!
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263
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Advertising
agency'e
report
Thisreportcomesfrom
anoutsideagency
and
iswrittenat the reouest
Katz
ofthecompany,
who
Electrical,
domestic
manufacture
are
appliances.They
l o si nggr oundint he
marketandhave
anadvertising
employed
agency
with market
to
research
resources
find out why.Theagency
hassubmitted
a
preliminary
reportbased
ontheirmarket
research,which
they
Katz
hopewill persuade
to attenda
Electrical
in which
oresentation
propose
theagencywill
a na dv er t is ing
ca mpar gn.
K
K&6 ADVER T I 5 I N GA S S O C I A T E 5
Thor nt onHou s e K e n s i n g t oCnh u r c hS t r e e It L o n d o nw B 4 a r u
Date:10April 20Preliminary Market Research Report for Katz Electrical Ltd
Wehavecompletedour marketresearch
on testingconsumerreactionto yourbrands,
andattacha statisticalanalysisofthe research
resuits.Thispreliminaryreportis a
which you might iiketo
summaryof our flndings,conclusions,
and suggestions,
discusswith us afteryou haveconsidered
the results.
Oursurveywasbasedon discussions
by a numberoffocusgroupsofusersandnonUsingthe resultsof
usersof yourproducts.
Theseweremoderatedby a psychologist.
to a randorn
the discussions,
we constructed
a questionnaire
which waspresented
sampleof 500peoplereflectingthe populationdistributionof this country.Weasked
them abouttheir preferences
ofyour productscomparedtootherson
andawareness
the market,and from this usageand attitude studywe produceda profile of your
brandscomparedtothoseof othercompanies.
Thelistsattachedshowthestatisticalbreakdownin answersto our questions.In
summarytheysuggestthe following:
1 Although your productsarestockedin leadingstoresand your name is well-known,
andoldthereis a feelingthat,in spiteoftheir reliability,they areover-priced
yourbrandswith appliances
fashioned.
The15-25agegroupassociate
usedby their
parents,andthe 25-35agegroupassociate
yourbrandswith the 1980s.
2 Yournamefeaturedverylow on the list when peoplewereaskedto namea brand
of electricflre,vacuumcleaner,
iron,andrefrigeratorYouwill seefrom the attached
surveythatlessthan 10%ofthe samplehadheardofyour mostrecentproduct,the
'Popup'toaster
imagepeople
Webelievethat poormarketingisthe main reasonfor the old-fashioned
which we aresure
haveof your products.
Also,thereis a lackof brandidentiflcation,
canbe overcomewith a well-plannedadvertisingcampaign.Wesuggestthe following
^^+i^4Ltrvlt
-^i-+^_
Pvlltl>:
1 Establisha symbol that will be identified with all your products.The rnost obvious
appearsto be a cat,a domestic animal for domestic products,which is also
associatedwith your name.
2 Your current advertisementsgive the impression of functionalism We suggest
glamorizing the ads,maybe with an exotic cat which will always be recognized
when seen.
3 Improve the packaging of the products,perhaps by using more fashionable colours
and a symbol (seei and 2)
4 Improve the targeting of your advertising campaigns. For example, it would be
better to concentrateon women's magazinesrather than national newspapers.
If, after studying the enclosed information, you are interested in attending a
presentation in which we would be able to illustrate these ideas more fully, please let
us know. I am confldent that if we handled your account we could improve your sales
it ^^
^- LUrL4r
DrSr
^i
r LIy.
-+1-,
qet,r/ qr'u,er
GerryGrover
Marketing
Director
C!
9,,
264
HowdidK&G
Advertising
obtain
theirinformation
l's
aboutKatzElectrica
products?
What doesthe
documentattached
to the report show?
W hy do K&Gt hink
that Katzdoes not
havea good image,
and what do they
suggestto improveit?
4 Whatsymboldothey
suggest
Katzuse?
5 Whatkindof
publication
dothey
suggestKatz
advertise
in?
What do K&G say
they coulddo if Katz
allowsthem to
handletheir account?
Whichwords in the
reporthavea similar
m e a n i n gt o t h e
following?
typeof product
b l i kes
anddi slikes
tl
out ofdate
areaof business
handledby
another
organization
Pointsto remember
=
Hcmor
o
3
o
5
Memos are usually quite formal and
impersonal in style.
They can be addressedto an individual or to
a group of people within a company.
!l
5
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!
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0
5
A memo should clearly indicate at the top
who it is to,who it is from,what it is about,
and the date it was written.
lcportr
1 There are two main types of report, those
submitted regularly and those submitted
onlywhen they are required.
',4
2 Plan your report carefully: make sure that it
proceedsiogically and that your points are
expressedclearly.Inthe caseoflong reports,
a brief one-pagesummary will help busy
people.
3 Most reports,regardlessof length, consist of
a title, introduction, main body,conclusions
and recommendations.The headings you
use must be clear,and guide readersthrough
your report quickly and easily.
255
267
267
267
268
268
270
271
272
273
274
275
216
277
277
277
278
279
28o
28r
APP LY IN G FOR A JOB
J o badverti sements
Lettersof application
A p pl i cati onformsand cvs
Coveringletters
M A K IN G A D E C IS ION
T u rni ngdow n an appl i cant
Offeringa post
Acceptinga post
Pointsto remember
A PPTYI NG FO R A
'OB
Jobadvertisements
Advertisements(often shortenedtoads)for
employment appearin allthe media,including
radio, rv, and the Internet. However,
newspapersand magazinesare a very
common sourceof vacancies.Some
advertisementsuse abbreviatedforms,
especiallyin the small ad section,e.g.:
Wntd PA.f.t.sml mnfg co.Gdslry.5-day wk,
hrs9-5,uslbnfts.
Afull-lengthversion of this would read:
Wanted,p ersonal assistantfor full-time
employmentin small manuJacturing
company.Goodsalary,fve daysa week,hours
of work9.ooa.m.to5.oop.m.,usualbenefts
in terms of conditionsand holidays.
Lettersof application
Opening
Generally,the lerms vacancy,post, or
appointmentareusedinsteadof the word
job in applications.Whenreplying to a job
advertisement,aswith most correspondence,
it is best simplyto statewhat you are doing,
and give a date or reference.
- I would like to applyfor the post of
Programmeradvertisedin this month's
edition o/Computers.
- I amwriting concerningyour advertisement
in the Guardianof tz Mayfor abilingual
secretarytowork inyour ExportDepartment.
- I am answeringyour advertisementforthe
post of bank trainee,which appearedin
yesterday'sTimes.
If the advertisement is not clear about how you
should apply for the job, it is better to phone
the PersonnelDepartment (sometimescalled
Departmenf)of the company
HumanResources
to flnd out.
Rememberto quote any referencenumbers
or job titles that are mentioned in the
advertisement.
Forursorrcrrro applications,
i.e.applying
for ajob which has not been advertised,you
can open like this:
I am writing to ask if you might havea
v acancyin y our departmentfor a (n)
administrativeassistant/ salesnerson
/
accountsclerk.
If someoneassociatedwith the company
suggestedthat you write to them, mention this
rnyour openrng.
I was recommendedby -,
who is currently
working in your company/ who hashad a
long associationwithyour company/ who is
one of y our suppliers,to contacty ou
concerninga possiblepost in your Department.
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Request
for an application
form
If you arewriting to askfor an application
form, give somevery brief detailsabout
yourselfthen askforthe form.
Theseexamplescan alsobe usedfor
unsolicitedapplications
- I am zj yearsold,and haverecently
graduatedfrom with a diploma / degree
(Givethe subject,and mention any
in-.
specialtopicsyou studiedthat arerelevant
to the post.Youcan alsomention the classof
a degree,and any specialhonours suchas a
distinction.)
- At presentI am workingfor -,
whereI am
in the Department.
employedas a C l osi ng
Thereis no needto give any more information
at this stage,soyou can closethe letter:
- Pleasecouldyou sendme an applicationJorm
and any other relevantdetails?
- Iwould begrateJulif you couldsendme an
applicationform. If y ou need anyfurther
details,pleasecontactme at the above
address/ email address.
267
6
tr
o
Application
formsandCVs
tr
o
r
c
o
When you receivean application form, always
read it through carefully so that you know
exactlywhat information is required.It is a
goodideato photocopyit,completethe
photocopy,andwhen you arehappy withit,
copy the information onto the actual form.
Somecompaniesprefera cu RRTcULUM
vrran , usually called a cv (resumein American
English),which is your personal and working
history >seepages274and 275for examples.
Application forms and cvs may be emailed,
faxed, or sent by post.
E
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15
C o v e ri n g l e tte rs
You may need to send a covering letter with an
application form or cv. If you do,it should
briefly explain points that might not be clear.
You could also give further details to stress
your suitability for the post.
Opening
If the companyhassent an applicationform,
rememberto thank them.
If you are enclosinga cv, mention it at the
beginning of the letter.
Thankyou for your letteroJand the
applicationformJorthepost of -.1enclose
the completedJorm/ my cv.
Bodyofthe letter
Your covering letter should be short. Ifyou
needto developor emphasizeany points,do so
briefly and simply.
YouwiII seethat I graduatedfro
Universityr
/ Collegein zo-,where I gaineda
degree/ diploma / certificate in-.
(Mention any parts of your studies relevant
to the post.)During my employmentwith
my work was specifi.cally concerned w ith
(Mention work relevant to the post you
-.
are app$ing for )
Reasons
for leavingajob
If you needto explain why you Ieft a job, it is
bestto soundpositive.Neversaythat you
wanted a better salarv or conditions.You
26 8
shouldnot sayyouwere boredwithyour job,
and never criticize the company you worked
for,their productsor senrices,
or your colleagues.
Explanationsfor leaving a companycould
include the following:
- / le.7t(old employer) because(new employer)
offeredme a chanceto usemy (languages,
rr
training, etc.).
- I wasoffered a chanceto join (company)
wherethere wasan opportunityforfurther
training and experiencein-.
- Iwas offeredthepost of SeniorTechnicianby
(company)in (date),and thereforeleft .
(company)in orderto ...
-I joined (company)in(date)aspartoftheir
newEasternEuropesalesteam.Thiswasan
excellentopportunity to ...
Previousexperience
Most application forms give some spaceto
describepreviouswork experience,e.g.what
your duties and responsibilities were. Here you
have a chanceto highlight your achievements,
e.g.any specialresponsibilitiesor projectsyou
undertook,changesyou made,or schemesyou
introduced.
- WhileIwas aTeamLeaderat(company),
I superviseda team of sixtechniciansand
introducednew quality controlprocedures
whichresultedin...
- During mytime at(company),Iwas
responsiblefor marketing softwareservices.A
largepart ofthis role involvedsuccessfully
implementingchangein the...
- During my time at (company),/studiedparttimefor an mae,whichl completedin zo-.
Sincethen I havegainedmore management
expertence
tn ...
- Aspart of my degreecoursein Busi.ness
I workedfor threemonthsin the Data
Studies,
ProcessingDepartment of a large computer
corporationwhereI gainedexperiencein ...
Reasons
for applying
All prospectiveemployerswill want to know
why you are applying for a specificjob. This not
only means explaining why you want the job,
but why you think your particular skills and
experiencewould be valuable to the company.
interested
inthepostasI
- I ampartieularly
in (area
couldapplymypreviousexperience
ofwork).
in thispostasI
- I am sureI wouldbesuccessful
you describe,
as
havethe skillsandexperience
weIIas...
- I believemy backgroundin (areaof wor$
eqaipsmefor thepostyou advertise,
my recentexperience
o/(specialist
especially
website
area,e.g.projectmanagement,
development).
of (areaof work),and
- Ihatrcsomeexperience
a careerin
aboutdeveloping
am enthusiastic
thisfield.
!
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Closing
At the endof the letter,offerto supplymore
information if necessary.
- I lookJorwardto hearingfrom yoa However,
if thereisanyfurtherinformationyou
requirein themeantime,pleaselet meknow.
- Pleaseletmeknowif thereareanyother
detailsyou need.Meanwhile,I Iookforward to
hearingfromyoa
withyou at
- I wouldbehappyto dlscuss
coald
interviewhowmy skillsandexperience
be used t oy our advantage.
269
6
C
Unsolicitedletter
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Noticein this letter
how the applicantfirst
mentionshow he knows
of Mitch ellHill(a
merchantbank),gives
brief detailsof his
educationand
experience,
and then
refersto his current
employers,whoapprove
of staff spendingtime
a broad.Finally,he tells
Mit ch ellHillwhy h e
wants to join them
temporarily,and asksfor
an app lica tion form.O f
course,he couldalso
includ ea cv with th e
letter,but in this case,he
knowsthat company
practiceis to send
applicationforms.
Fiirstenweg uo
D-30000 HanoverTl
21June20-
MrJohn Curtis
Manager
MitchellHillPtC
11-15Montague Street
london EC15DN
DearMr Curtis
I am writing to you on the recommendationof David Mclean,Assistant
Managerin your SecuritiesDepartment.We met last month on a coursein
Hanover,and he suggestedthat I shouldcontactyour companyand
mention his name. He told me that you often employ people from other
countries on one-yeartemporary contracts,and I am writing to enquire
about the possibility of sucha post.
I am at presentemployedbythe InternationalBank in Hanover,in their
SecuritiesDepartment.I haveworked here since20-, when I graduated
from the Universityof Munich with a degreein Economics.Inmy present
position asAssistantto WolfgangLilers,Directorof the Securities
Department,I dealwith a wide rangeof investmentsfrom companies
throughout Europe,buying sharesand bondsfor them on a worldwide
basis.As well as speakingfluent English,I alsohavea goodworking
knowledgeof French.
I would like to spenda yearin the UK to gain further experiencein
securitiesinvestmentwith a British bank,and believethat my experience,
training, and languageskillswould proveuseful to your organization.My
employerencouragesall its staff to spenda year abroadand Mr Liierswould
be willing to give you a reference.
I would be grateful if you could send me an application form and further
information about the posts currently available.If you need any further
information,I can be contactedby email on bauerm@aol.com.de
or
telephone on 49 511,505941x155.
Yourssincerely
MarcusBauer
HowdidMarcus
Bauerhearabout
Mit c hellHill?
270
Whatishispresent
post,andwhat does
h ed o ?
I What are his
qualifications?
W hydoyouthi nkhi s
bankencourages
employees
to work
abroad?
What doeshe want
M i t c h e l lH i l l to se n d
him?
Mitchell
Hill plc
Replytoan
unsolkitcdlcttcr
rr-r5 MontagueStreet
London
E C I 5D N
rE tE P H oN t r44 (o)ro 76tS 3Jr1l z13
FA cstMrrE +4.{ (ol ro16u5 4or9
cA B Ir MITH IL (Lorrdonl
E MA rL Mcl ean@mrl h l (o uk
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29 June20MarcusBauer
Fiirstenweg 1.10
D-30000Hanover71
DearHerrBauer
Thank you for your letter of 21June 20-. We currently have two vacancies
in the SecuritiesDepartment which might be of interest to you.
15
Il|
xll
3
E.
o
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rt
o
I am enclosing an application form, and a booklet giving details of Mitchell
Hill, including the salary structure and conditions of employment for
trainees on temporary contracts.Would you pleasecomplete the
application form and send it to Helen Griffiths, Human Resources
pepartment, at the aboveaddress.
Youwill seefrom the form that we require two referees.I suggestthat you
include the names and contact addressesof yourDirector and an academic
refereefrom the University of Munich.
We look forward to receiving your application.
Yourssincerely
shdlA,Burrows
SheilaBurrows(Miss)
p.p.DavidMclean
SecuritiesManager
27r
6
C
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E
o
Applicationform
Hall plc
M itchell
Application
form
:"t
Post
lr-r5MontagueStreetLondonEClsDN
Surname(Mr MrsMissMs ) Bauer
Forename(s)
Marcus
Mer chantBank
r
c
G
o
C
c
o
s
o
o
M a id e n n a m e
-
Maritalstatussingle
Age 28
Dateof Birth12Nov 20-
N oof chi l dren -
A ges
Address
Furstenweg1.10,
D-30000,Hanover71
relwening(49) 511251068
Teldaytime (49) 511-506941x155
15
E
e
Nextof kin Mr Kurt Bauer,father (seeaboveaddress)
Educatkrn
School/u n ivlcollege
From
E
Secondary
Friedrich-EbertGyrnnasium
2Q-
G
HigherUniversitatMinchen
20-
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ul
HerrenhauserSt D-30000Hanover21
20-
Grade 5ubject(s)
Diploma
Business
studies/ 20Economics
20Business
English 20English
20-
I
Abitur
1
ICCIHigher
CambridgeProficiency B
l.filurtGr
Fluent
Fair
French
English
Em/oyr'r irmc end Ad&crs
International Bank
Georgenplatz108
D-30000HannoverL
X.mcr rrd dd.rrrcl
Hittorfstr. D-80000 Munchen
Hre you any of thc following rtilhl
Ereninetionr
lT rkills: (Tickappropriatebox)
!1 Spreadsheets
tl Wordprocessing
I Desktoppublishing(DTP)
X PowerPoint
E Database
7 Keyboardskills
to TB
E| Bookkeeping
Accounts:
! Manual
E Computerized
MTclex
[if Curtomcl contact
Drlvlng Licence
Flllng
lorltlon end dutlg
20-
20-
of two rchrro
Herr Prof.K. Weil, Universitat Mtinchen, Hittorfstr., D-80000 Mi.inchen
Herr Wolfgang Ltiers,Director,International Securities,International Bank,
B*g$!g49lyg
3,Ha:rcvgll
e 7-e, D- 6037
ttoLa;fxt|r{du
Reading,chess,skiing, swimming, andtennis
272
5elery
Assistantto Director
Lzz,OOO
of InternationalSecurities
Dept.Buyingandsellingsecwities
(rn w" )pprorchyourEmployer
for a reference?
(Y es
lVh r n w,ll yo u n o t b e a va ilabl efor an i ntervi ew ?
Date(s)before5 Sept.
DateL7July 20-
Signature
I
No
25WestboundRoad
Borehamwood
Herts
WD61DX
18June20Mrs J.Hastings
PersonnelOfficer
International Computing Servicesplc
CityRoad
LondonEC34HJ
YourRef:KH 305/9
DearMrs Hastings
I would like to apply for the vacancy advertisedin the Guardian on 16June
for a PersonalAssistantto the SalesDirector.
Coveringletter
wlth cv
In this example,notice
that the applicantstarts
by referringto thejob
advertisement.
5hethen
goeson to expandon
her presentdutiesand
give other information
that shefeelsis relevant
to the post.Shealso
explainswhy sheis
applyingfor th is
particularvacancy.lf, on
her cv,shegivesher
currentemployersas
nereneEs,shecould
mentionthat shewould
preferlnternational
not
ComputingServices
to approachthem until
after an interview.
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As you will seefrom my CV,I am currently PersonalAssistant to the Sales
Manager of a small engineering company.In addition to the day-to-day
administrationwork,l representthe SalesManagerorl someoccasionsand
am delegatedto take certainpolicy decisionsin his absence.
I speakgood French and Italian, and use both languagesin the courseof my
work.
I am particularlyinterestedin this post asI would like to becomemore
involvedwith an IT organization and am veryfamiliarwith many of your
software products.
If there is any further information you require, pleasecontact me. I look
forwardto hearing from you.
Yourssincerely
(arol, Rrk*
CarolBrice(Ms)
Enc.CV
273
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274
C u r r i culu m
vitae
{cvJl
T herea rea n umb er
ofways of presenting
informationin a cv.
Traditionally,the
sequencewa5 name,
address,
contactdetails,
maritalstatus,
education,
qualifications,
work
experience,referees,
and interests.However.
it is now morecommon
to beginwith brief
personaldetails,
followed by a short
profileor descriptionof
yourself(sometimes
alsoca lleda cAREER
suMM ARY).Afte rtha t ,
the most important
informationis recent
employmenthistory,
and skillsa nd
qualificatio ns.
In th e
interestsof
you
completeness,
shouldaccountfor all
yearssinceleaving
school,but if the
informationis irrelevant
tothe positionyou are
applyin gfo roris some
yearsold,youshould
summarizeit as briefly
as oossible.
Thesedays,it is
generallyunnecessary
to
mention maritalstatus.
children,age,health,or
currentsalaryunless
lly askedto do
specifica
so,but this willvary
accordingto the law and
customin different
countries.
Hereis a typicalcv
for an exoerienced
professional.
WendyBenson
CharteredStatistician
Address
48 DanburyRoad
Amersham
Bucks
HP8 5SM
Telephone
07494665093
Email
bensonw@amc.co
uk
Profile
-
-
A highly competent qualitative and quantitative market researcherwith
wide experiencein advertising,market researchcompanies,government
research,and productionand retail organizationsin the UK and overseas.
Highly numerate,with excellentcommunicationskills.
Analytical, innovative, self-motivating, confident.
Able to lead ortowork aspart of ateam
Welcomesnew challenges,especiallyif they involve implementing and
developing schemes.
Experiencedtrainer and facilitator
FluentinFrench and German
Computerliterate.
Employment
2002-present
Department of Employment
SeniorMarket Research
Officer Responsiblefor planning and implementing
researchon future government manpower requirements;formulated
marketing strategies;conductedcustomercarestudy;setup databasefor
labour-force survey.Organizedstatistical training coursesfor government
staff at all levels.Responsible
for a team of six market researchers
1995-2002
Universal Advertising PLC
AssistantDirector,Research
and PlanningDepartment.Responsible
for trade
and consumer research;market information systems;market forecasting;
trade and consumer analysisof existing and new businessfor marketlng and
salesdepartments.Managedtwo membersof staff
1997-1995
MMBC Associates
Market Researcher.
Involved in researchon products and data relating to the
retail food and beveragemarket.
Qualifications
MBA, Open University (part-time)
Diploma of Institute of Statisticians
BSc.(Mathematics and Statistics),University College,London
Publications
Seelist atiached
1995
7991
1 9 90
Curriculum
vitae
(cv)2
AdamHall
a
Thi si sa typi cal cvf or
recentgraduate.
Date of birth:
Address:
Tel.:
Email:
25February1925Victoria Road,Birmingham Bl9 zZK
orzt 895399t4
adhall@interservenet uk
ProfiIe
A highly-motivated, well-travelled, and creative graduatewith practical work
experiencein both salesand TEFLteaching A 4-month postgraduateresidencyat
the Biosphere2 Center,Arizona,has given me wide-ranging knowledge of, and
insight into, environmental problems and ways of presenting them to the pubiic.
Education
19--19-
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King Edward'sSchool,Birmingham
O Levels:Art, Biology,Chemistry English,French,
Geography,History Maths, Spanish
Alevels:
Art
Environmental Studies
Chemistry
Spanish
20--20-
15
tn
x
o
3
E.
o
A
A
B
B
a
LeedsMetropolitan University
BAHons EnvironmentalStudies: 2:7
Academy SchoolofEnglish, Leeds Cert CELTA
Work experience
April 19--luly
19-
Weekendsalesassistant,Kings Norton Garden
Centre,Birmingham
January20--May 20- TEFLtutor, lA Schoolof English,Katowice,Poland
Other information
September20-December20-
4-month residencyat the Biosphere2 Center,
Arizona,USA
May 15-16,20-
Co-presented'No
smoke...'at the BrettonHall Sculpture
Park,University of Leeds.An installation which explored
the environmental implications of major forest fires,both
natural and man-made
Itne 20-24,20-
'Timemicroscope'at the CoventGarden
Co-presented
Flower Festival.An installation which explored different
ways of presenting information about the natural world
Interests
My main interest outside work, although related to it, is travel. In 19- I took part in
a schoolexpeditiontothe HighAtlas mountains in Morocco,and produceda video
of thetrip.In my gap year I travelled extensivelyin SouthAmerica, again
documentingthetrip bymeans of sketchbooks
andvideo.lalsoenjoyWorldMusic,
particularly that from countries I have visited, and play the oud (Moroccanlute)
References
Prof.T.N.Fagin
DepartmentofEnvironmentalStudies
LeedsMetropolitan University
LSz3RX
Wher edidA dam
studyenvironmental
p r oblem s ?
Wh a td i dh e d o w h i l e
h ew a si n Po l a n d ?
WhoisDrElzbieta
Gordon?
Dr ElzbietaGordon
Principal
JASchooloflnglish
UlicaCzysta14
Katowice
Poland
Wh a t d o y o u t h i n k
Adam'smain
interestis?
Wheredid Adam
graduatefrom?
What commercial
experiencehashe
had?
rO
tr
|D
f.
o
=
275
6
E
o
E
lnvitation for an
intervlew
L.B. Richrnan
Associates
tr
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e
t!
o
E
E
o
I
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A
z7-29 MooreParkRoad
Peterborough
PE27t B
Tel.t+44@)r73572947
Fax:+44@)t733572948
Fmail: levina@richman.cou,k
Yourref: 18June20Ourref:K H 305/59
15
o
et
o
E
E
t!
x
29 June20MrAdamHall
25Victoria Road
Birmingham
BtgzZK
IlI
DearMrHall
Thank you for your application of L8Junefor the post of -.
We would
like you to come for interview on Thursday 12Jr.rlyat 11.00a.m.Couldyou
phone me on Ext. 217to confi.rmthat you will be able to attend?
I look forward to hearing from you.
Yourssincerely
Atttt"e Lepih,
AnneLevin
Recruitment Department
276
M AKI NG
A DECI SI O N
downan applicant
Teirning
Companiesrejectapplicantsfor a varlety of
reasons,themost common of which arelack of
relevant quaiifi cations or experience.However,
it is unusual for a candidate to be toJ.dwhy he
or shehas beenrejected
- Thankyoufor attendingour selectionpanel
ot1-.
We reg ret to inform y ou that y ou
inyour application.
werenot successful
- Weregretthat we are unableto offeryou the
position of -,for
whichyouwere
interviewedo
Thankyouforyour
interest in XYZLtd.
- Wehavedecidednotto appointany of the
applicantswho wereintenriewed
for thepost
-,
of
on
and wiII be re-advertisingthe
vacancy.
Offeringa post
Lettersto successfulapplicantscanvary in
Iength and detail dependingon the type ofjob,
whether the companyhas a standardprinted
contract,or if for somereason,it is necessaryto
give detailsof the terms of employment,
Op e n i n g
- Wearepleasedtoinformyouthatyouwere
in your interviewfor thepost
successful
- Wewould liketo offeryou the postof - Theselectionpanel hasapprovedyour
appointment
- Thebank hasagreedto acceptyoufor the
post oftrainee,subjectto the usual references.
Detailsof employment
inyour interview,yourduties
Aswe discussed
will include... Workinghoursarefrom o8.oo
to t6.oo,Mondayto Friday.Youare entitledto
z5 d ays'annualIeave,plus all p ublic holidays.
Thereis a staff contributorypensionscheme,
whichyou wiII be eligibletojoin on successful
completionof a six-monthperiod of
pr obationaryemployment.Staffbenefits
includea subsidizedcanteenand free
membershipof the staff socialclub.Four
weeks'noticeof termination of employment
is requiredby bothyou and the company.
Yourtermsand conditionsof employmentare
asfollows:
Title: TraineeMaintenanceEngineer.
o83o,Monday gth March zo-.
Commence:
Duties:ServicingaII companyproducts.
Hours:8.ooa.m.to 4.oop.m.
Days:Monday to Friday,plus occasional
weekendsat overtimerate.
Holidays: z5 d ays'annual leave,plus all
publicholidays.
Paid sickleave:maximum z8 daysper
annum
Annual salary:f-.
Overt i me: Time-and -a-half. Doubletimefor
publicholidays.
pensionschemeat 7%of annualpay.
Pension:
Benef.ts: Subsidized staff canteen,
membershipof staffsocialclub.
Notice:Fourweeks'noticeof termination of
employmentmustbegiven.
Yourtrainingwill commence
on Monday,
period
year.
November
a
one
of
4
for
a
copy
ofthe
Staff
Pleasefindenclosed
Handbook,which
containsfulldetailsof the
termsand conditionsof employmentwith
MitchellHiIl.
!
o
o
t
3
g
!
!
!,
9.
t
3
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t
15
C l osi ng
Aletter offering a job would invite questionsif
anything is not clearabout the terms and
conditronsof employment,and askfor written
confi.rmationof acceptance.Inthe UK,the law
requiresthat companiesoffer a contractof
employment,and two copiesof this are often
sentwith the letter.The applicantwould be
askedto return one slgnedcopywith their
confirmation,and keepthe other for their oum
records.
- I lookJorwardto seeingyou in my ffice at
og.ooa.m.onMondayto Januaryzo-.If you
haveany questionsconcerningthe enclosed
conditions,pleasecontactme immediately.
pleasewouldyou sign the enclosed
Otherwise,
contractoJemploymentand return it with
your letterof acceptance.
277
5
E
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tr
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et
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6
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15
- Twocopiesof your contract of employment
are enclosedwith this letter.Pleasesign one
copyand return it to the PersonnelOficer, Mr
TerenceWright, with a letter confirming you
haveacceptedtheposition. Mr Wright wiII
then get in touch with you with your joining
instructions.
- Pleasereportto Receptionat o83o on
Monday 4 N ovember. YouwiII receivea two day indudion and orientationcourse,and
then begin work on Wednesday6 November.
Acceptinga post
Lettersconfirming that you accepta post can
be brief, as long asthey cover all the relevant
points.
- Thankyouforyourletter of 4 December
zo-offeing methe post of -.1am
delightedto accept.I lookforward to seeing
youat og.oo,onMondayto January.As
requested,
I encloseone signedcopyofthe
cont ract of employment.
- I am returninga signedcopyofthe contract
of employment,whichyou sentme with your
Ietterof ry February.Iconfi.rmthatlwillbe
able to begin work on Monday 9 March at
o 8.oo,and lookJorward to seeing y ou then.
- Thankyou for offering me the temporary
position of traineein your bank,stafting on
Monday 4 N ovember.I have read the Staff
Handbookandthe relevantdetails
concerningtraineeships,
and acceptthe
conditions of employment.
27E
Makinga job offer
F
o
L.B. Richrrran
Associates
z7-zgMooreParkRoad
Peterborough
PE27 t B
Tel.:+44(o':7331-- , ,7
Fax:+44(olrli.: '.r- '-!s
Em atl :l c v ttr ,r ..t.c t,:^
.'
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Yourref: 18June20ourref: K H 305/59
Date: 25Julv 20MrAdamHall
25VictoriaRoad
Birmingham
BI9 zZK
DearMrHall
15
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3
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I have much pleasure in offering you the pesf ef -.
I can confirm that your starting salary will be f 21,000p.a.,and your
employment will commence on Monday 15August 20-.
Pleasesign both copiesof the enclosedcontractof emplopnent and return
" them to JoannaHastings,Human Resources
Department,at the above
address,with your acceptanceletter. Full details of your employment are in
the StaffHandbook,a copy ofwhich I alsoenclose.Pleasereadthe relevant
sectionsof the handbook carefully, and let me know if you have any queries.
Pleasearrive at Receptionat 9.30a.m.onMonday 15August,and askfor me.
I look forward to meeting you and welcoming you to the company.
Yourssincerely
An*w Lain
Anne Levin
Recruitment
Enc.:Contractof employment (2copies)
StaffHandbook
279
s
9
Confirminc
acceatancc
s
o
c
c
25VictoriaRoad
Birmingham
B192ZK
t!
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tr
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6
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15
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IL
Anne Levin
L.B.RichmanAssociates
27-29 MoorePark Road
Peterborough
PE27]B
YourRef:KH 305/9
E
G
Dear Ms Levin
ul
I amverypleasedto acceptyouroffer of the posf ef -,
15August 20-.
x
slarting on
As requested,I enclosea signed copy of my contract of employment.
I look forward to meeting you.
Yourssincerely
Ad^a.il,t
HalL
AdamHaIl
Enc.Contract of employment
z8o
Pointsto remember
!
o
1 The wordjob is not usually used either in
advertisements or applications.The terms
vacang/,post, or appointmenf are more
appropriate.
2 If requestingan applicationform,keepthe
letter brief, but provide essential details
about yourself. \Mhen returning the form,
include a covering letter expanding briefly
on details that might not be clear,or
pointing out important or relevant
qualifications and experience- but keep this
short as the application forrn or cv should
containfull details.
0
3
3
g.
!
!
0,
9.
=
3
o
I
6
15
3 When writing to a prospectiveemployer,
rememberto explain whyyou left your
previous post,but do not complain about the
salary or conditions. Concentrateinstead on
your suitability for the post,what you can
offer your new employer in terms of
experienceor expertise,and why you
particular$want it.
z8r
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V
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U n i tt
> pagez6
1 Becausehe wants to seehow well they will sell
i.e.assurances
2 Tradereferences,
from other
furniture dealersthat Mr Hughes'business
has
a goodreputation.
3 A provisionalorder;asan emailattachment.
4 No,Mr Hughessaysthe consignmentcanbe
sentwith the next deliverv.
> Pa8e27
1 Yes.
2 None.
3 Returnthem to Homemakers
within two
monthsof the dateof the email.
4 Letusknowif wecanbeof anyfurther help.
U n i t3
> Page44
1 Toindicatethat he may be ableto sella large
quantityofcos.
2 Froman advertisement.
3 Hewantsleadingbrandssuitablefor domestic
recording,andsomesamples.
4 Tradediscounts.
5 Yourssincerely.
6 aleading bbrand csubstantialddiscount
> Page45
'1,chainofretailers.
2 Men'sleisurewear.
3 At HamburgMenswearExhibition.
4 Quantityandtradediscounts.
5 3o-daybili of exchange,
documentsagainst
rrrpnfenrc
6 Over5oo.
7 a range b displayedc net price d garment
U n i t4
> Page55
1 Thereferenceof M. Gerard's
enquiryand also
the date.
2 Theyarepart of a consignmentofbankrupt
stock.
3 No.
4 A price-listenclosed
with the letter,and also
post.
samplesofthe cosby separate
5 No.HerrGerlachadvisesthem to orderfast as
thereis strongdemand.
> page56
I Herefersto someof the productsin the
enclosed
catalogue.
2 Hementionsour worldwidelistof customers
3 ctr to Canadianseaboard
pofts.
4 He invitesMs Loweto contactGlastonPotteries
for further information.
5 a selectionb choosec receiDtoforder
282
> PaSe57
1 Sheis out of stock ofthe types of unit Sr
Monteiro is interested in.
2 She mentions that she is testing another
consignment of units.
3 No, she saysshe will contact him.
> Page 58
1 No, he offers a 15%trade discount, not the zo%
which Mr Crane askedfor.
2 By sight draft, cash against documents.
3 He says that he would be prepared to review it
when a firm trading associationhas been
established.
4 Satex'ssummer catalogue and price list.
5 He mentions other retailersthroughout Euyope
andAmerica.
6 asightdraft breview cassociation
> Page 59
1 An estimate for refitting Superbuys'Halton
Roadbranch.
2 A net total (it excludes ver).
3 BecauseWembley Shopfltters use best quality
materials and offer a one-year guarantee.
probiems that
4 unforeseencircumstances,i.e.
were not predicted.
5 SeniorSupervisor.
6 apremises bworkedout cbacked
Unit 5
>
1
2
3
>
1
2
3
4
5
>
1
2
3
4
5
6
page64
Satex's.
No.
Within sixweeks.
page 65
The most likely reason is that he wants to see
how the order is handled.
The catalogue numbers.
Trade and quantity discounts
Withinsixweeks.
The order number (on 4316).
page 58
The crockery shou-ldbe packed in 6 crates,ro
setsper crate,each piece individuallywrapped,
cratesmarked MacKenzieBrosLtd,fragile,and
cro ckery, and nttmbered r- 6.
Letterofcredit.
There are regular sailings from Liverpool to
Canada
Yes,providedthe designs arethose stipulated
on the order.
MacKenzieBros.
acrockery bcrates cfragile dstipulated
e made up
> Page69
1 By s e a .
2 On3oJuly.
3 GlastonPotterieswill transferthem to Burnley
City Bankfor forwarding to the Canadian
Union TrustBank.
4 Theysubstitutedthe samedesignin red.
5 a n e c e s s a ryb s e n t c a s p e ryour
d withthe exceptionof
> Page73
1 Theirmain supplierof chromehasgone
bankrupt.
2 Theywillflnd anothersupplier.
3 Bythe middle of next month.
4 Yes.
5 Whether or not Majid Enterpriseswant to
cancelthe order.
6 aconcerningbbankrupt cconfldent
d assemblede inconvenience
> Pa8e74
1 Thecustomerwantsa verylargediscount.
2 By sayingthat z5%is his maximumdiscount.
3 Thathis refusalonly appliesto this order.
U n i t6
> pageSz
1 Theinvoicenumber(ro96la3).
2 at(eachprice)
3 L3,z7r.oo
4 Cost,Insurance,
andFreight(cIF).
5 By includingn & or (ErrorsandOmissions
at the bottomofthe invoice.
Excepted)
> page83
1 l27o.oo
2 L8o.oo
3 f,r8ooo
4 f,r,58o.oo
f5zz.oo.
5 Accountrendered
6 Yes,3%discountfor paymentwithin seven
days.
> Pa g e 8 9
1 €7,139.oo
2 Thecompanyarewaitlng for compensationfor
cargolostin a fire.
insurancecompanyhave
3 VanBasten's
promisedto paythem compensation
within
the next few weeks.
4 a c l e a r b i n te n d e d c s h i p ment
d compensatione appreciate
> Page9r
7 meet
2 A governmentorderto stoptradewith another
country.
to customers
3 Heplansto selltheconsignments
in Brazil.
4 He suggests that Zenith should draw a new bill
of exchange in sixty days'time, with 6%
interest added
5 atemporary bmajor cconsignment
d draw
> PaEe92
1 Yes
2 He has commitments (i.e.suppliers to pay)
himself.
3 No.
4 He suggeststhat Mr Franksenshould pay half
the outstanding balance immediately, by bank
draft, and the other half within forty days.
5 Mr Franksen will send a bank draft for half the
amount by return ofpost, and the signed n /r
773rfor the other half
, page 95
1 Becausethey were moving from Milan to
Turin
2 He has encloseda cheque as part payment and
promises to settle in a few days.
3 To make a note of Omega'snew address.
,.Page97
1 Copiesof the invoicesmaking up the
outstanding balance
2 Three months
3 Yes.They plan to instruct their solicitors if
payment is not receivedwithin ten days
4 instruct our solicitorsto start oroceedinas
L,i',i
5
€
o
o
-
-
b Page1o4
1 Becausehe orderedfrom an out-of-date
catalogue
2 Deliver the correct consignment and collectthe
wrong one
3 Becausehe is cancelling the invoice for the
wrong conslSnment
4 He is sendlng him a newwinter catalogue.
5 a looked into b instructed c pick up
d mislaid
> Pagelo5
1 The boxes were broken open in transit.
2 Becausetheywere crushed or stained.
3 The salewas on a cIF basis,andthe forwarding
company were Sig.Causio'sagents,so he must
dealwiththem.
4 Alist of damaged and missing articles.
5 Keep it until Sig Causiotells himwhatto do
with it.
6 aintransit bestimate ccontact
> pagero8
1 He thinks it was caused by dripping water. He
will arrange for it to be repaired and seal offthe
area.
28t
{,
J
c,
!
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2 He thinks it was damaged by metal boxes
being dragged acrossit. He sayshe will arrange
for it to be repaired,but only if Superbuyspays.
3 By using trolleys to shift metal boxes.
4 Lessthanaday.
5 a inspected b hardwearing c normalwear
andtear d shifting
Unit $
>
1
2
3
4
>
1
Page122
Becausehe could claim 3%cash discounts.
Payment on monthly statements.
Becausehe has been a customer for some time.
VVhenhe pays his next monthly statement.
Pagez4
He sayshe knows M. G6rard can supply
references.
2 He operateson smallprofitmargins.
3 No. Herr Gerlach says he d oes not offer any of
his customers credit facilities.
4 He thanks M. Gdrard for writing and says he
looks forruard to hearing from him again.
> Page129
1 Conflrm that MacKenzie Bros's credit rating is
good enough for quarterly settlements of up to
f 8,ooo.
2 MacKenzieBros have said Pierson& Co.would
be willing to act as their referees.
3 That it will be treated in the strictest confdence.
4 a quarterly b confirmation c warrants
d settlements
> Pagel3o
1 Contacted MacKenzie Bros to confirm that they
were happy for Pierson& Co.to act as referees.
2 He has ahighopinionofthem.
3 Theyhave paidwhen debts were due.
4 He says that Pierson & Co.give MacKenzie Bros
credit facilities in excessoflhose they have
asked Glaston Potteries for.
5 a inexcessof b confidence
> Page132
I He contacted F.Iynch & Co.to confirm that they
wanted Grover Menswear to act as their
referees.
2 ontheirbehalf
3 Becausethey prefer to take advantage oftheir
cash discounts.
4 He saysthey will fake no responsibilityfor how
you use this information.
5 a dealingwith b reputable c confldential
> Page134
1 He asksif theyhave had any bad debtsin the
past.
2 Becausethey may have gone bankrupt under
another name
284
3 a overdueaccountsb bankruptcyproceedings
> page135
1 Two.
2 t4oo,ooo.
3 Not asfar asCreditInvestigations
know
4 Yes,the companywastakento courtby L.D.M
Ltdto recoveran outstandingdebt.
5 Not always.
6 Theytendto overbuy,i e.buy too muchstock.
7 a investigated b recover c outstanding
U ni t9
> Page142
he hasa largecreditbalancein his
1 Because
depositaccount.
that they discussa formal
2 He suggests
arrangement.
someoneelsemight readit, causing
3 Because
Mr Hughesembarassment.
> Page143
1 Because
a post-datedchequehadnot been
cleared.
2 Because
it waspost-dated,
i.e.for a laterdate.
3 Hehastransferredf,r,5oofrom his deposit
accountto his currentaccount.
> Page144
1 Because
he wantsto expandhis business.
2 Furnitureassemblykits
3 Sharesandlocalgovernmentbonds.
4 An auditedcopyof his company'sbalance
sheet.
5 A documentthat showsthe totalsof money
receivedand paidout overa givenperiod,and
the differencebetweenthem.
6 adiscussbexpand cexceededdf1rlfil
e estimate f audited
> page145
1 A loanof f r8,ooo.
2 It is to be calculatedon half-yearlybalances.
3 Homemakers'currentaccount.
4 3o September.
5 arepaid bguarantor dagreement
> paget46
1 In orderto expandhis business.
2 Mr Ellison'spreviousoverdraftand the current
creditsqueeze.
3 Thathe approachesa flnancecorporation.
F P ager49
1 ToB.HaasBV'sbank.
2 Thirty daysafterit hasbeenpresented.
3 Thebankwill handthem overto herwhen she
the bill.
accepts
> P agel 5o
1 A bill of exchangepaidaftera periodof time,
e.g.thirty daysafterit is presentedto the
importer (buyer),usuallyby an agentbank in
agentis willing to guaranteethe customer's
hiq countnr
accounts.
dLLUurLr).
2 PantonManufacturing.
Thirty days after presentation.
page r59
1 Byquotingthenumberofthemodelandthe
number in Delta's catalogue
2 Cost,Insurance,andFreight(crr).
3 roJunezo-.
4 Theyshoulddrawfortheamountoftheinvoice
onthe agentbank and supplythe shipping
documents listed in the email.
5 EastlandBank.
6 Offcial order 885t
7 The value of the goods might go up.
> page 16r
1 SpeirsandWadleylimited.
2 Signedinvoice in triplicate; full set of clean on
boardshippingbillsoflading; insurancepolicy
or certiflcate in duplicate.
3 Coveringmarineandwarrisksuptobuyer's
warehouse,forinvoicevalueofthegoodsplus
toYo.
4 No. Tr ans s hipm ent is not per m i t t e d .
5 L4,to6.oo.
6 ro August zooz.
7 Barclay'sBank.
8 The Downtown Bank & Trust Co.
9 No. Partshipment is not permitted.
10 4oo electric power drills.
> page 163
1 OnrzJune.
2 TheyhavebeensenttotheEastlandBank.
3 Bymeansof discount,commission,and
charges.
> pager5S
1 On 3 June.
2 In polystyrene boxes inten cratesmarked r-ro
3 Slxty days after sight (i.e.days after
presentationofthe draft).
4 Cooper and Deal are the importer's
( I nt er nat ionalBoat s ) agent ba n k i n H o n g K o n g . '
5 When to collectthe documents.
6 Acertificateoforigin.
7 Theboatsmustnotbealteredlnanyway.
8 a dinghies b supplied c guarantee
d modifled
4
5
6
7
Yes,advertisingsupport.
British Crystal must approve the account
Sufficient capital, contacts,and facilities
aexpand bselection cunique
3
6
{
q
F
l Asoleagency.
2 Yes.
3 Hesuggeststhree:biilofexchange,letterof
credit, orbank draft.
4 Threeyears
5 Anunsignedversionwhichcanbediscussed
and altered
6 a deducting b dispute / disagreement
c initial
> pagerT6
1 Direct.by letter of credit
2 No,S.AImporterswouldonlyholdsamples.
3 Leafletsand brochures
4 Foroneyear
5 ThatbothBritishCrystalandSA Importers
agreeto renervthe contract
6arepresentative bmeet csubjectto
, pageln
1 A soleage:.cv
2 Becausehe coesn t thi.:rk saieswould be as high
as Sr Iglasis exeecls
3 The way in u-r;ch par.':nentsare settled
4 Six weeks is too ior.g fcr seasonaldemaads,e g.
the Christmas r..rsh
5 Foroneyear
6 (fordiscussionI
7 a minimum b rernit c shorten
> page179
1 Becausetheyhavefoundtheyarerestrictive,
both for themselves and their customers.
2 Run a publicity campaign.
3 Siny D/S (daysafter sight),D/A (documents
against acceptance)
4 a retail b market prices c followed up by
pagetSt
1 No
2 Foroneyear
3
thevolumeofbusinesswouldmakeitworth
acceptingouroffer.
4 a proposition b envisage c be effective
Unit r o
> Pagev4
1 Mr Mohamed AI Wazi,of the SaudiArabian
TradeCommissioninLondon
2 NorthandSouthAmerica,andtheFarEast.
3 Ato% commission on net list prices, and an
additional 2.5%del crederecommission if the
>
1
2
3
4
Pagergl
They are scratched,split, or warped.
No,onlyboxes4,5,and6.
No
He asks if they shouid be returned or kept for
inspection.
28s
o
J
o
3
tr
286
>
1
2
3
Page192
The consignment number.
There is a checker'smark on each box.
BecauseDiscSA.madethedelivery
arrangements.
4 Heenclosesacopyofthecarrier'sreceipt.
5 adam age bgoods depot c s u p p l y
'" page r93
1 Eight boxes of c o s
2 In perfect condition.
3 He thinks the consignment was roughly
handled and left near a heater.
4 €5oo.oo - the losson invoice value.
5 The consignment was sent carrier'srisk.
6 Copiesoftheconsignmentnoteandinvoice.
7 apremises bassume cfragile dhold
> pagergs
1 Air waybill, and customs clearanceand
handling charges
2 For customs inspection.
3 BritishCrystalttd.
4 Thedespatchform
> page 195
1 British Airways.
2 Three
3 IATA.
4 No.
5 No.
6 Receiver/lmporter.
7 Shipper or his agent; issuing carrier or its agent
8 Natureandqualityofgoods.
9 Pre-paidandcollect.
> page 2or
1O n7M ay .
2 Lgr.ooperton.
3 Shipping instructions and an itinerary.
4 adet ails bv es s el c s ails d d u e
> Page 2o2
1 ToOrder.
2 That the bill of lading covers goods that might
betransferredfromonekindoftransportto
another, e.g. ship to train or truck.
3 Under VesselandVoy. No.
4 Theship'scaptainorarepresentativeofthe
shipping agency.
5 UnderNumberandkindoJPackages,
DescriptionofGoods
6 They would look for the shipping marks on the
crates.
7 P&O Nedlloyd.
8 Thattherewassomethingwrongwiththe
goods.
9 The original document
l0Portofdischarge.
> Page2o3
1 The bill of lading, commercial invoice,and
insurance certiflcate.
2 DeltaComputers.
3 Delta Computers.
4 apickup bshipped chandle dadvise
>p a g e 2 o 5
1 r8 May.
2 Leavingor sailingfrom, and arriving or docking
tn.
3 t 6tz.oo per ton or ten cubic metres.
4 International Shippers'standardshipping note
and bill of lading. He needsto complete them
and return them to International Shippers.
> page2o8
l WestmorlandBank.
2 Acceptthebillofexchange.
3 The B/L is clean.
4 TheAmerica.
5 In the enclosed catalogue, ppro3-rro.
6 EddisJones.
> page213
1 By cubic metre or cubic kilogram.
2 Yes,becauseInternational Containerswould
offer substantialrebates (discounts).
3 Onz4March.
4 Ahalf-heightcontainer.
5Itwouldcovertheconsignmentdoor-to-door.
6 Door-to-door.
7 Mr Muner adviseshim to do so.
> pagezrS
1 Achancetohireit.
2 Melbourne
3 No,sheislargerthantheywanted.
4 Becauseherownersarewillingtoofferapart
charter.
rx' l itr
{rJ
> page224
1 Comprehensive cover.
2 Thirty.
3 A sprinkler system, and file exits on every floor.
4 Becausetheir present insurers have raised their
rates
5 a comprehensive cover b sewiced
c minimal d pettytheft e cover
> pagezz8
I Mr McNulty, Westway Insurance's surveyor.
2 This is Mr McNulty's valuation of the damaged
stock at current market prices.
3 Damagetothepremises
4 Completethe claim form and return it to
Westwaylnsurance.
5 ainspect bpresent cconsequently
d complete
Page44
Becausethey are making regular shipments.
North and South American eastern seaboard
ports.
3 Againstanyeventuality,i.e.allrisks
> Page238
1 When they have all the details
2 Becausetheirpackingisinadequate.
3 Worldwidelnsurancemayraiseit
4 aconsider bpointout cmethods
d premlum
3
4
5
6
> page253
1 Becauseit is stricUyconfdential andemail is an
open system.
2 Becauseif the information was made public
before a successorwas appointed it might
affect the company's shares,credit rating, etc.
3 Signthememotoconflrmtheyhavereadit.
4 bytheendofthisweek
5 aconfidential bseveral ccandidates
'>pa9e2'4
1 Michael Hobbs,the OverseasSalesManager.
2 Be availableto answer questions and explain
procedures.
3 Itwillcreateagoodimpressionofthefactory
for an important customer
4 a components b procedures
c co-operation d essential
> pagez56
1 They will increaseproductivity and lower
production costs,making the company more
competitive.
2 No-onewilllosetheir job.
3 Union representatives,
4 a reduce b affect c learningnewskills
> Page257
1 Becauseit has been losing money for three
years.
2 ro%ofthestaff
3 Anemployeeagreestogiveuphis/herjob.
4 Overthenexttwoweeks.
> page262
1 Becausethey have expanded steadily in SP
Wholesalers'markets.
2 Clothes,especiallychildren's clothes.
3 Studythe market forthe next year.
a 48% of their annualbudget.
5 Eithernew share issuesorloans.
6 Beforethe end of the financialyear
7 adala bvirtual cturnover
I Page25)
1 Notverygood.
2 Tableware.
2
7
8
>
1
3
4
5
5
7
Lr4,ooo.
Jordan,Kuwait, and the Emlraies
Manufacturers inthe Far East.
He should increasehis credit lim:t ar-: : :-,-,:
termdraftpayments.
M r K a s s i m 's a c c o u n t s a n d a s u m m a n - : : : : , :
market research he has done
aquarterly bquestionnaire ccrediti,r::
pagez64
Theyusedtheresultsoffocusgroup
discussionsto construct a questionnaire lvh.:::they presentedto a random sample of 5oo
people.
Astatisticalbreakdownof answerstoK&G
Advertising's questionnaire.
Their products are too expensive,and oldfashioned.They suggestKatz Electrical
improve their marketing and brand
identification.
Acat.
Women'smagazines.
Increasetheirsales,
abrand
cold-fashioned bpreferences
d account
=
F
l
C
> page2To
1 He met someonewho works in Mitchell Hill's
SecuritiesDepartment.
2 He is assistantto the Director of International
Bank'sSecuritiesDepartment.Hedealsin
sharesand bonds
3 He has a degreein Economlcs.
4 To broadentheir experienceof different
working systems.
5 An application form and further information
aboutavailableposts.
, Page275
1 In the Biospherez Center,Arizona, USA
2 HetaughtEnglishasaForeignlanguage.
3 PrincipaloftheJASchoolofEnglish.
4 Theenvironment.
5 LeedsMetropolitanUniversity.
6 He has worked as a salesassistant.
287
L
ru
(r')
rn
o
u
accountrendered Unpaid amount recordedin a
statement of account, details of which were in
a previous statement. [6]
advicenote Document or messageinforming a
customer that a consignment rs on its way to
them. [5,rr]
advisingbank Bank in a seiler'scountrythat
advisesthe sellerthat a letter ofcredit has been
lssued in their favour, and may also guarantee
it.Is]
agency Company that provides a service.[ro]
agent Personor company that acts on behalf of a
principal,buying or selling goodsforthem. [r,ro]
agent bank Bank representing seller (exporter)
usually in the buyer's (importer's) country. The
agent bank will hand the shipping documents
over to the buyer either when the buyer pays
the bank in a documentsagainstpayment
transaction (D/P)or when he or she 'accepts',
say,a bill of exchangein a documentsagainst
acceptance(D/A) transaction.Agent banks are
also used in ietters of credit transactions in a
^i".it^,-..^-.vv4y,
Drfrrff4r
f"" l
Lrrl
air waybill Document that givesinformation
about goods sent by air, and stateswhether the
buyer or selleris responsiblefor insurance [5,rr]
all risks(an) Type of insurance policythat
provides cover against all risks except those
listed in the policy. lrr,rzl
and (&) Co. Abbreviation f or and company,tsed
ln companynames. [r]
appendix Sectionof a document, e.g.a report,
that contains additional information and is
attached to the end. Ir4]
an Abbreviation for all risks.[rr]
arbitration Settling a dispute by means of a third
party who is independent ofthe others rather
than by a court of law. [ro]
asat Uptothisdate.f6l
asper Accordingto.[S]
assessor Personwho estimates the value of
damage to property for insurance purposes [rz]
asset Anything of value ownedby a company
that can be sold off. lrrl
attachment Separatedocument attached to an
email message.Icons indicating attachments
form part of the header information. [r]
attention line Phraseindicating who a letter is
f.or,e.g For the attention of the Managing
Director. j.l
averageadjuster Assessorspecializingin marine
insurance claims. [rz]
backlog A number of jobs waiting to be done,
and which are late, e.g.orders to be filled. [7]
288
bad debt Debt that is not likelyto be paid. [8]
balance Differencebetweenthe totals of money
coming into and going out of a bank account. 16]
Baltic Exchange An intemational exchangefor
freight and shipping, based in London. [rr]
bankcharges Feeschargedbyabankfor
handling transactions.[9]
bank draft Chequethat a bank draws on itself
and sellsto a customer.[6,8]
bank transfer Movement of moneyfrom one
bank account to another. [6]
b,c.c. Abbrevi ation for blind carb o n copy, used
at the end of copiesof a letter or in the header
information of copiesof an email messageto
indicate that they are being sent to other,people
without the named recipient knowing. [r]
s/e Abbreviationfor bill of exchange.l3,6l
beneficiary Personwho receivesmoneyfrom,
e.g.an insurance policy or pension scheme.lrz]
benefit payment Payment made from a pension
fund or a life assurancepolicy. [rz]
bill of exchange(e/r) Method of paymentwhere
the sellerpreparesa bill in the buyer'sname
ordering them to either pay the amount when
the bill is presented, or a specified number of
days,e.g.thirty or sixty days,afterwards [6,8,9]
bi ll of lading (a/l) Shipping document that gives
details of a consignment, its destination, and the
consignee.It entitles the consignee to collect the
goodson arrival. Ir,rr]
blind carboncopy (b.c.c.) Similar to carbon copy
(c.c),onlythere is no indication onthe copy of
the letter or messagesent to the named
recipient that copies are being sent to other
people.[r]
e/L Abbreviation for bill of lading. ft,r.l
blockedstyle Style of writing, e g. an address,in
which each line starts directlybelowthe one
above.[r]
box number Number given in a newspaper
advertisement as part of the address to which
replies shouldbe sent. [3]
brochure Similar to a catalogue,but usually
shorter. [3]
broker Personor organization that buys and sells
goods,shares,or insurance,for others. [ro]
budget PIan of income and expenditure for a
particular period of time, e.g.a year. [r4]
build ing society Type of organization originally
set up in the UK to provide mortgages, but now
offering a wide range of services similar to
those offered by commercial banks. 19]
bulk buyer Businessor organization that buys
goods in large quantities, e g. a supermarket
chain [3]
bulk carrier Ship that carriesvery large
quantities of freight without packing, e.g.
grain, coal [n]
bulk consignment Consignment of goods carried
in large amounts and without packing, e.g.
^-^i5r4rrL,
^^-l
LV4r
f., l
Lrrl
bu llion market Market dealing in gold or silver in
bars. [9]
buying agent Agent who buys goods on behalf of
a principal and receivesa commission, Buying
agents can also act as forwarding agents,
clearing goodsthrough customs and sending
them on to their clients [ro]
buyinghouse Groupofbuyingagents [ro]
cabotagelaws Laws that allow a means of
transportation, e.g ship, aircraft, to pick up
goodsfrom one country and transport them to
another for trade. [rr]
cAD Abbreviation for cashagainst documents.
l+,sl
careersummary Short proflle or description of
the subject at the beginning of a cv. [r5]
carbon copy (c.c.) Exact copy of a letter or email
messagesent to people other than the named
recipient. They are listed at the end of a letter
or in the header information of an email
message.[r]
c.c. Abbreviat ion f or carbo n copy, us ed al the end
of a letter or in the header information of an
email messageto indicate that it is being sent
to other people.[r]
carriageforward (cr) Condition of saiewhere the
customer pays forthe transport ofthe goods.[4]
carriagepaid (ce) Condition of salewhere the
seller pays for the transport ofthe goods [4]
cashagainst documents(cno) Atransaction
when the agent bank (acting for the
seller/exporter) in the buyer's country presents
shipping documentsto the buyer and askshim
or herto payforthe shipment before the
shipping documents are handed over to the
buyer [4,5]
cashcard Cardissued by abank orbuilding
society to an account holder that enables
him or her to withdraw cash from a cash
dicnpncpr
fol
cashdiscount Amount taken offthe usual selling
price of goodswhen they are paid for by cheque
or cash.l3l
cashon delivery(coD) Condition of salewhere
the buyer pays immediatelythe goods are
delivered.[6]
catalogue Book or booklet giving details of goods
or services offered by a company, usually with a
price list [3]
certificateof origin A document that shows
where goods were made. [9,rr]
c/r Abbreviation for carriag eforward l4l
c rs Abbreviat ion f or co nt aine rfr eig ht st atio n. ltt]
chamberof commerce Association of business
people formed to protect thelr interests and
provide services,e.g.supplying information
and setting up recognizedstandards oftrading.
o
o
t
lr,ro]
charter To hire a means of transport, e g a ship or
aircraft. lrrl
charter party Contractfor chartering a ship. [u]
chequecard Cardissued by a bank or building
societyto an account holder guaranteeing that
their chequeswill be honoured up to an agreed
limit [9]
c rrvr Abbreviation for rail co n sig nm ent not e ltr)
circularletter Letter,either advertisingor offering
a product or service,circulated to a large number
of companies or individuals [3]
claimant Personwhomakesa claimfor
compensation from an insurance company. [rz]
claused Termusedon abillof lading to indicate
that goodswere damaged or incomplete when
takenonboard [n]
clean Term used on a bill of lading to lndicate
that goodswere taken on boardin good
condition Irr]
cleanbill Bill of exchangewithout any
accompanying documents. [9]
clear (A) To pay an account.(B)To pass goods
through customs [6 (senseA); rr (senseB)]
clearingagent Personor organizationthatclears
goodsthrough customs frr]
clearingbank Another termfor commercial
banklsl
closedindent Order that statesthe sourcefrom
which the buying agent must buy. [ro]
caan Abbreviat ion f or r oa d co n sig nm ent n ot e. lttl
CoD Abbreviationfor cashon delivery.16]
combinedtransportbill of lading Anotherterm
f or mult im od aI b ill oJIa ding. [tt]
commercialagent Personor companythat acts
on behalf of a manufacturer, selling their goods
to retailers. lro]
commercialbank Type of bankthat deals mainly
withprivate customers and small companies in
domestic and international transactions l9]
commercialinvoice A document that will include
the name and addressof the seller and buyer,
the terms of delivery and payment and a
description ofthe goodsbeing sold.There is a
289
t!
o
I
standard s Irp Ro document, which exporters
can use. [1,1r]
commission Chargefor handling a transaction.[ro]
commissionagent Another term for com mercial
agent.lrol
commodity market Market inwhich raw
materials and certain manufactured goods
(e.g.coffee,copper) are bought and sold in large
quantities by brokers and dealers.lro]
compensation Money paid by an insurance
company for damage,loss,or injury. [7]
compliments slip Small piece of paper with a
company's details on it, and possibly the name
ofthe person sending the slip. Used as a
coverlng note for a longer document. [5]
complimentaryclosePhraseusedatthe end of a
letter, before the signature,e.g.Yoursfaithfully,
Yourssincerely.lt]
comprehensivecover Insurance cover against
most risks [rz]
confirmed letterof credit The seller's/exporter's
bank (acting as an agent bank) in the
importer's/buyer's country conflrms to the
sellerthat they will guarantee payment for the
goods,thus reducing the risk ofthe buyer/
importer not paying the seller/exporter.Ir,rz]
confirming bank Another termfor advising
bank.lgl
confirming house Agencythat receivesorders
from overseas,placesthem, and arrangesfor
packing, shipping, and insurance. [9, ro]
consequentiallossinsurance Insurance against
loss of money as the result of an accident.[rz]
consignee Personor organization to which goods
are sent by a consignor.[rr]
consignment O_uantityof goods sent to supply an
order. [r]
consignment basis Basison which an agent is
employed to resell goods for a commission, e.g.
as a distributor. [ro]
consignment note Document sent with goods,
giving details ofthe goods and sender.It is
signed by the person who receivesthe goodsto
provetheyhave arrived 15]
consignor Personor organization that sends
goodsto supply a customer'sorder. Irr]
consolidation When small consignments fiom
different exporters are Ioaded into a single
container. h1]
consolidationservices When shippers or
forwarding agentsload small consignments
from different exporters into a single container.
lnl
consularinvoice Invoice,or stamp on a
commercial invoice,issuedby the consulate in
290
the importingcountrywhich givespermission
for goodsto be imported [9]
consulateBranchof an embassythatprotectsthe
commercialinterestsof the countryit
rpnrecenl-c
[r nl
containerVerylargemetalboxin which goods
arepackedfor transportation.[rr]
containerfreight
station(crs) Containerdepotfor
imports [rr]
containerwaybill Documentthat gives
informationaboutgoodssentby container,and
stateswhetherthebuyeror selleris responsible
fnr
incrrrenrp
[rrl
contract Agreement, with legal force,made
between two or more people.[7]
correspondentbank Bankthat acts as an agent
for another bank. [6]
counterfoil Part of a cheque or paying-in slip
which can be detached and kept as a record.[9]
courtesytitle Title such asMr, Mrs, or Dr used
before a person'sname. Ir]
cover (n) Insurance;(vb) Provide insurance
Iro,rz]
covernote Document that provides coveruntil
the insurance certificate is prepared Irz]
coveringletter Letter accompanying a document
or goods,explaining the contents [5]
c/p Abbreviat ion for carri ag e paid. l4l
credit (n) Sum of money paidinto abank
account; (vb) To record in a bank account a sum
of money paid in. [9]
credit card Card,issuedby a bank or flnance
company,that guaranteespayment for the
goodsor servicesthe cardholder buys.
The cardholder pays the card issuer at a
later date.[6,9]
credit facilities Means of allowing credit, e.g.
payment by bill of exchange,open account
facilities. [8]
credit note Document informing a customer of
money owed by a supplier for faulty or
returned goods.It can only be used to buy
goodsfrom the supplier. [6,7]
credit rating Evaluation of the creditworthiness
of an individual or company. [8]
credit status Creditworthiness of an individual or
company. [9]
credit terms Rulesinvolved in maklng a
payment, e.g.allowing a certain amount of
time, signing a contract,paying by bill of
exchange.l8,ro]
credit transfer Transfer of money from one bank
account to another. [6,9]
creditworthy Capableof paying offthe credit
offered [8]
crossed Term used to describea cheque or postal
order that has two lines drawn acrossit to show
that it must be paid into an account and not
cashed.[6]
current account Account into which the
customer can pay money, and draw it out,
without giving notice. [6]
curriculumvitae (cv) Document describing a
person'squaliflcations,work experience,and
interests,usually sent with a job application.[r5]
cv Abbreviationfor curriculum vitae. p5]
dishonour Torefusetopay(e.g achequeorbillof
exchange)becausethere is not enough money
in the account [6,9]
distributor Personor company that buys goods
from a manufacturer and then seilsthem to
o/a Abbreviationfor documentsagainst
acceptance.l3l
daysafter sight (o/s) The number of days within
which a bill of exchange must be paid after
presentation 19]
Dc Abbreviationfor documentary cred.it.16]
dealer Personwho buys and sells shares,goods,
or servicesto make a proflt. [ro]
debit (n) Sum of money paid out or owed from a
bank account; (vb) To record in a bank account a
sum of money paid out or owed. [9]
debit card Cardissued by a bank that enables
payment for goods and servicesto be taken
from the cardholder'saccount automatically. [6,9]
debit note Document informing a customer of
money owed for goodsor servicessupplied.[6,7]
declarationform Form used when an open
cover pollcy is in operation to provide details
of individual shipments to the insurer. [rz]
default To fail to do something required by law,
e.g.repay money owed, keep to the terms of a
contract [8]
del credereagent Agent who guarantees
customers'debtsho]
del crederecommission Commissionpaidto an
agent who guaranteescustomers'debts.lro]
delivery note Document sent with goodsto
a customer.It is signed by the person who
receivesthe goods to prove they have arrived
(o/n) When a
documentsagainstacceptance
bank will not releaseshipping documents until
a bill of exchangehas been signed (accepted)by
the personreceivingthegoods 13,9]
documentsagainstpayment(o/e) When abank
will not releaseshipping documents until a bill
of exchangehas beenpaid by the person
receiving the goods.[4,9]
o/p Abbreviationf.or documentsagainst
payment l4l
draw (on) (A) To write a chequethat instructs a
bank to make a payrnent to another person ot
organization (B)Towrite a bill of exchange
demanding payment from a person or
organization frt (senseB)]
drawee Personwho must pay a bill of exchange
(e g,the buyer) l9l
drawer Writer of a bill of exchange,who draws
the bill on the drawee(e g the buyer) [9]
o/s Abbrevialionfor days afier sight l9l
due Arriving or dock[ngln (a destinationport),
e g due Hong Kong ltz)
due date Date by whlch an accountshouldbe
settled [6]
rateilerc
o
ll
[r rnl
documentarycredit (oc) Letter of credit that
requiresthe sellerto supply shipping
documentsto obtain payment from a bank 16,9]
document of title Document that allows
someoneto claim the goodsspecifiedon it, e g
r4u!r5
h1l
department of trade Government department
that provides services to industrial and
commercial organizations [ro]
deposit account Type of savings account
that requires notice before money can be
takenout l9l
despatchnote Document sent with a
consignment, giving details of what it contains
and any missing items that wili be sent later [u]
direct debit Similar to a standing order,except
the amount is specifledby the payee [9]
discount (a e/r) To sell abiil ofexchange to a
bank at a percentagelessthan its value. [9]
o
trrl
e and (&) oE Abbreviationfor errorsand
omisslonsexcepted 16l
endorse(vb) To transfer a chequeor bill of
exchangeto someoneelseby signing it on the
back [rt]
errorsand omissionsexcepted(r & oe) Phrase
written or printed at the end of an invoice or
statement of account to indicate that the seller
has the right to correct any mistakes in it. [6]
estimate Pricegiven for work to be done or a
serviceto be provided. [r,3]
eurobond market Market dealing in bonds issued
by European governments [9]
eurocheque Chequefrom a Europeanbank that
can be cashedat any bank in the world
displaying a eurochequesign. Ig]
ex- From (a vesselor port of departure),e.g ex-55
Orianna,ex-Hamburg. lt o,e]
291
t!
-9
t,
excfusiveagent / agency Another term for sole
agent / agency.[to]
executor Personor organization appointed by
the maker of a will to carry out its terms. [9]
factor Agent who buys and sells for another
organization,but in his or her own name. [ro]
factoring Processwhereby a companybuys the
outstanding invoices of a manufacturer's
customers,keepsthe accounts,and then
obtains payment. [ro]
rcr Abbrevialion f.orfull container load. [rr]
fidelity bond Guarantee against an employee
stealing moneyfrom a company. [rz]
fi nancialyear Periodusedby companies for
accounting and tax purposes.In the UK, from
6 April to the following 5 April. [r4]
force majeure Term used in insurance policies
meaning an outstanding or unusual event,
e.g.a violent storm, an earthquake.[rr]
foreign bill Term used in the UK for a bill of
exchange drawn, or payable,in another
country. [9]
foreign exchange Money in a foreign currency.
tsl
foreign exchangemarket Market dealing in
foreign currencies.[9]
forwarding agent Personor organization that
conveysgoodsto their destination. Forwarding
agents are involved in the Iogistics of
transportation, finding the most effective and
economical route. [5,u]
freight account Invoice sent by a shipping
company to an exporter. [rr]
full container load (rcl) Consignment from a
single exporter that fllls a container. [rr]
generalaveragesacrifice Term used in marine
insurance to referto cargo that has been
deliberately thrown overboard,e.g flammable
goods in the caseoffire. [rz]
giro Systemfor transferring money from one
bank to another. [6]
grossprice Priceof goods including additionai
costssuch as transport, insurance,and
purchasetax. [4]
groupage Another term for consolidation. Irr]
groupage rates Ratefor container shipments
when different consignments are put together
in a single container. [11]
guarantee (A) A promise that if something goes
wrong with a product, the sellerwill repair it;
(B)A promise to repay another's debt. [7]
guarantor Personwho undertakesto be
responsible for, or to repay, another's debt. [9]
292
handling charge Freight company's chargeto an
exporter for dealing with the documentation
for a consignment. [tt]
houseairwaybill Airwaybill issuedto an
individual consigneewhen consignments
have been consolidated.[rr]
IATA Abbreviation for lnter nat io nal Air Tr ansoort
Association.lttl
Ic D Abbreviat ion for inland clear an ce d ep o t. [tt]
fMo Abbreviationfor international money order.
t6l
Inc. Abbreviation for incorporate d, lsed i^
comPany names h]
incorporated_Americantermfor public limited
company. L1l
Incoterm Term establishedbythe International
Chamber of Commerce (tcc) indicatingwhich
price is being quoted to the customer > see
Pager 51-52.[2,4]
indemnify To promise to protect someone
against money lost or goods damaged [rz]
indemnity A promise to protect someoneagainst
money lost or goods damaged.[ro]
indent Order fiom another country. [ro]
inherent vice Term used in insurance policies
meaning something inthe content ornature
of goodswhich causesdeterioration, e.g.flsh
or fruit can go bad, metal can oxidize. [rr]
inland bill Termusedinthe UKfor a bill of
exchange payable in the country in which it is
drawn up. [9]
inlandclearancedepot (tco) Depot where
goods are collectedand sent on to their flnal
destination. [rr]
insideaddressAddressofthepersonaletteris
written to. [r]
instructionsfor despatchform Consignors
fill out this form for transport companies
or forwarding agents so the details of the
consignment, e.g. contents,packing,
measurements, and its departure and arrival
dates and placescan be put on the relevant
transport documents, e.g.the waybills or
consignments notes.
insurancecertificate Document that an insurance
policy is written on. [5,r2]
insuranceof interest Insurance against making a
businessmistake [rz]
insuranceof liability Insurance of responsibility
for loss or damage,e I a company's
responsibility to compensateemployeesfor
injury at work. [rz]
intermodaf Another term f.ormultimodal. lrtl
InternationalAir TransportAssociation(tara)
Association of major airlines that meets
regularlyto agreeon routes and chargesfor
their services.lrr]
internationalbank draft Chequethat abank
draws on itself and sellsto a customer,who then
sends it to a supplier in another country. [6]
InternationalChamberof Commerce(tcc)
Association of businesspeople that promotes
and protectstheir interestsin businessaffairs.[4]
internationalmoneyorder(tMo) Moneyorder
bought from a bank to send to someone in
anothercountry 16]
InternationalUnderwritingAssociation(t ua) Body
responsiblefor Institute CargoClauses.Irz]
invoice List of goods or servicesthat stateshow
much must be paid for them. [5,6]
irrevocableletter of credit Letter of creditthat can
only be cancelledwith the agreement of the
seller.14,91
issuingbank Bankthat issuesaletterof credit.lg]
t/c Abbreviationfor letter oJcredit.f6,gl
LcL Abbreviat ion f or less than full cont ain er load. [tt]
lessthan full containerload (rct) Small
consignment that does not flll a container and
can therefore be shipped in the same container
as other consignments. [rr]
letter of credit (t /c) Document lssuedby abank
on a customer's requestthat orders an amount
of moneyto be paidto a supplier [6,9]
letter of indemnity Letter issued by an exporter
accepting responsibility for goods lost or
damaged during shipping [rr]
letterhead Printed addressofthe sender,in the
UK usually at the top of the page. lrl
life assurance Form of insurance providing for
the payment of a specifledsum to a named
beneficlary ifthe policyholder dies.[rz]
limited liability Company in which the
shareholdersare only responsiblefor the
capital they have contributed if the company
goesbankrupt. [r]
line Particular item made or soid by a company
trl
Lloyd'sof London An associationof underwriters
and insurance brokers.Irz]
Ltd Abbreviationfor limited liability, usedin
company names. [r]
long-term credit facilities Credit facilities that
allow a buyer a long period of time to pay. [5]
loyalty discount Amount taken offthe usual
selling price of goodswhen they are sold to a
regular customer 14]
make up To put together, e.g.an order. [5]
merchant bank Type ofbank that specializesin
international trade and flnance, and deals
mainly with large organizations.[9]
mortgage A loan for which property is the
security. l9l
movement certificate Usually called a EUR1.This
is a customs certificate completed bythe
exporter and countersignedby Customsto
obtain a preferential duty rate for goods
coming into the EUfrom an outslde country.It
has preferential duty rates with the EU country
e g. countries that were part of the Lomd
Agreement could get a specialduty rate [rr]
multimodal Usedto describeunits for
transportation, e.g.containers,that can be
transferred between different systems,e g
truck,train, and ship [rr]
multimodal bill of lading BiIl of lading covering
more than one means of transport, e g road
and sea.[rr]
mutual Description of a company or institution
in which there are no shareholdersand in
which all proflts are distributedto
policyholders or members. [9]
o
o
!)
-
negotiabledocument Document, e.g.a bill of
Iading, that can be bought or sold [rr]
negotiablesecuritiesSecuritiesthat canbe
exchangedfor goods,money, etc. [9]
net invoicevalue Value of an invoice without
extra chargessuch as shipping. fto]
net price Pnce of goodswithout additional
costssuch as transport, insurance,and
nrrrcheceiev
frl
new issuemarket Market dealing in new share
issues.[9]
non-Conference
ship Shipthatis not amember of
the Shipping Conferenceand doesnot travel on
scheduledroutes. frr]
non-exclusive
agent/ agency Personor
organization that sellsthe products of a
manufacturer alongside other agents in a
particular country or area.[ro]
non-negotiablewaybill Waybill that cannot be
boughtorsold [rr]
non-recoursefactoring Buying up an outstanding
invoice and claiming the debt from the
customer fro]
on approval Term used for goods sent to possible
customers to look at or use before buying them
lrl
online banking Using the Internet to transact
bankbusiness [9]
291
a!
6
o
(:,
on their own account In their own name.fiol
open accountfacilities Account in which a
customer is given an agreedperiod of time,
e.g.three months, to pay for goods.[4,8]
open coverpolicy Type of marine insurance
policy that provides coverfor all shipments
made by the policyholder over an agreed
period, e.g.six months. [rz]
open indent Order that allows the buying agent to
buy from any sourcethey choose.[ro]
option Right to hire a ship. [rr]
out of chargenote Note issued by customs when
goodshave been cleared [rr]
outstanding Unpaid.f5l
overdraft Loan made by a bank to an accountholder, enabling them to take out more money
than is intheir account [9]
overdraw Totake out more moneythanthere is
in a bank account. [9]
overhead A regular cost of running a company,
e g wages,rent. [9]
private ban k Similar to a commercial bank, but
owned by one person or a partnership and
therefore a much smaller organization [9]
pro forma invoice Invoice sent in advanceofthe
goods ordered.[5,6]
promissorynote Document inwhich a buyer
promises to pay a seller a certain amount of
money by a certain date. [6]
proposalform Form completed by a person
taking out an insurance policy that stateswhat
is to be insured, how much it is worth, how long
the policywill run, and under what conditions
it is to be effected.[tz]
prospectus (A) Similar to a catalogue,but issued
by a schoolor college;(B)Document published
by a company, giving details of a new share
issue [3,senseA]
protest To take legal action to obtain payment,
e.g of an outstanding bill of exchange 16,91
public limited company (elc) Companywhose
sharescan be bought and sold by the public. [r]
packing list list of goods being sent.This repeats
some of the information on a bill of lading, but
is a separatedocument. [n]
p and(&) p Abbreviationfor postage and packing
quantity discount Amount taken offthe usual
selling price of goods becausethe buyer is
purchasing a large quantity. [3]
quarterly report Report published everythree
months. [r4]
quarterly statement Statement of account sent to
a regular customer every three months. [5]
quotation Pricegiven for work to be done or a
serviceto be provided. [4,r2]
t6l
paying-inslip Printed form used by an account
holder to record cashor chequespaid into a
bank account. l9l
payload The part of a cargo that earns money for
the shipping company [rr]
pet prc For and on behalf oJ.lrl
pt c Abbreviationfor public limited company,
used in company names [r]
postageand packing(p&p) Chargefor postage
and packing goodsto be sent to a customer. [6]
postal order (ux) Document bought from a post
office that representsa certain amount of
money. It is a safe way of sending money by
post.[6]
p.p. Abbrevialionfor per pro, used before the
sender'sname in a signature block to indicate
that a letter is signed on behalf of someone
else,e.g.a personal assistant signing on behalf
of a manager. [r]
premium Payment made to an insurance
company in return for cover [rz]
primary source In research,sourceofflrst-hand
information such as an interview or
questionnaire h4]
principal Personor organizationthat hires an
agent or broker to buy or sell goodsfor them
Ir,ro]
294
railconsignmentnote (crM) Consignmentnote
sent with goodsby rail. [rr]
receipt Adocument showing that goods have
been paid for. [rr]
recoursefactoring Similarto non-recourse
factoring, but claiming the debt from the
manufacturer if the customer cannot pay. [ro]
referee Personwho writes a reference
(senseB).[8,r5]
reference (A) Figures (e.g.date) and / or letters
(e.g.initials of sender)written at the top of a
Ietter to identify it, often abbreviated to ref
(B)Written report on a company's
creditworthiness or a job applicant's character
and suitability for the job h(A), 8,rSF)l
remittance Payment. [6]
retailer Personor company that buys goodsfrom
wholesalers or manufacturers to sell to the
public. [3]
revocableletter of credit Letter of credit that can
be cancelled.[9]
road consignment note (cmn) Consignment note
sent with goods by road. [rr]
sAD Abbrevlation for sinqleadministrative
document.ltt]
saleor return Term used when the supplier
agreesto take back any goodsthat the retailer
-^--^+
LdrrlruL
^^ll
>trrr
f^l
LJI
salutation Openingof a letter,e g Dear Sir/
Madam.lrl
savingsaccount Account with a bank or building
societyfor personalsavings.lnterestratesare
higher than on other types of account.and
therefore there are usually restrictions on
when money can be drawn out [6]
scP Abbreviationfor simplified clearance
procedure fn]
secondarysource In research,sourceof
information such as a book or a report. [r4]
securities Items or investments,e.g.shares,that
can be bought and sold on a stock exchange [9]
settle (vb) Topayan account.[6]
settlement Payment of an account [5]
ship To send goodsby any method oftransport,
i.e.by road,raii, or air as well as by sea [5]
shipbroker Agent who arrangesthe transport of
cargoby ship. Irr]
shipment Consignment.[7]
shippedbill of lading Bill of lading signedwhen
goods are already on board a ship. [rr]
shippedcleanon board Phraseindicating that the
bill of lading was clean,i e.the goodswere
taken on board in good condition. [rz]
5hi pping Conference International organization
of shipowners that setsprices for transporting
goods or passengerson scheduledroutes. [rr]
shipping documents The documents usedfor
shipping goods,and usually including depending on the type oftransport -Bill o;f
Lading (or Airway B|II),commercial invoice,
insurancecertifcate andany other customs
documents that may be required in the
shipment, e.g.Health Certiflcate(for food),EURl
to get preferential tariffs, Certiflcateof Origin,
etc. [5]
shipping mark Distinctive mark put on the sidesof
cratesand boxesindicating who they belong to. [rr]
sight biff Another term for sight drafi.fgl
sight draft Bill of exchangethat must be paid
immediately it is presented.14,6,9]
signatureblock (A) Name andjob title typed
below a handwritten signature at the end of a
Ietter; (B)Sender'sdetails that appear below his
/ her name at the end of an email message.[r]
simplifiedclearanceprocedure(sce) Customs
clearanceprocedureused in the European
Union to make documentation easierfor
exporters and agents.lrr]
singleadministrativedocument (sao) Eight-part
set of customs forms for export declarations,
used in the EuropeanUnion. [rr]
soleagent / agency Personor organization that is
the only one allowed to sell the products of a
manufacturer in a particular country or area.[1o]
soletrader Personwho owns and runs a business
ontheir own. [r]
specificindent Anotherterm for closedindent
o
o
o,
Irol
specimensignature Exampieof a customer's
signature.usedby a bank to identify
documents as being valid [9]
standardshippingnote Document completedby
the exporter that gives information about a
r nns i onm eni
T t i s r r s c d a< a del i r r er r r nnte
nr
receipr l11l
standbyletterof credit Bank guaranteeto the
sellerthat they,,,,'illbe paid l9l
standingorder Orderto a bank to pay someonea
s nc r i 6ed
r m .r r nT
nr r r eor r l :r
detc
e o on f h e
first of everymonth -91
statement
of accou
nt I :stof amountspai dand
nr nr ed c ent hr i a c unnl i er r n
r r r r c i om c r
[6'l
stockexchange Marketrvherestocksand shares
arebought and sold -ro]
stop (a cheque) To instruct a bank not to honour a
cheque l9l
subjecttitle Phraseindicating what a preceof
correspondence
is about.e g c os damagedin
post.In a letter it is placeddirectlyafter the
salutation;in a fax or email it forms part of the
header information fr]
subrogation lnsurer'sright to claim damaged
goodsfor which they have pard compensation
Irzl
subsidiary Company of which at least half the
share capital is olvned by a larger company,but
which may trade under its own name [3]
syndicate Group of people or companieswho
work together to make money. [rz]
take legal action To hand over a matter, e.g nonpayment of a bill, to lawyers 17]
tanker Ship that carriesliquid bulk
consignments,usually oil In]
tariff list of prices chargedfor goods or services
L1U
telegraphictransfer (rr) Quick method of
transferring money to an account abroad The
sender'sbank cablesthe money to the receiver's
bank. l6l
tender Writtenestimate,usuallyforalarge;ob13]
term draft Billofexchangethat mustbe paidon a
particulardateafter goodshavebeen sent [6]
295
t!
6
o
c'
termsof payment Termsthe buyerand seller
agreeregardingdiscounts,
methodsof
payment,shipment,and documentation.
[9]
throughbill of lading Anotherterm for
multimodaI b iIIof Iading ln)
time charter Charterthat lastsfor a periodof
time,e.g.sixmonths.Irr]
title Thelegalright of possession.
[r]
to account Termusedwhen part of a paymentis
made.[6]
to order Phraseusedto indicatea negotiable
document.[rr]
tonnagevalue Thecostperton of cargofor
charteringa shipundera voyagecharter.lrrl
tradeassociationOrganizationthatrepresents
andpromotesa particulartrade.[8,ro]
tradediscountAmounttakenoffthe usualselling
priceof goodswhen they aresoldby a
manufactureror wholesalerto a retailer.[3]
tradejournal Publication,usuailyweekly or
monthly,specializingin a particulartrade or
profession.
[ro]
tradeprice Pricepaidfor goodsby a retailerto a
wholesaleror manufacturer.
[3]
tradereferenceReference
in which a personin
onecompanygivestheir opinionasto the
creditworthiness
of anothercompanyin the
sameareaof business.
[3]
traveller's
chequeChequefor a fixedamount,
soldby a bank,that canbe cashedby the buyer
in othercountries.[9]
trial order Order,usuallyfor a smallquantityof
goods,to testthe market.[5]
trustee A personor organization
that manages
moneyfor anotherpersonor organization.
19]
rr Abbreviationf or telegraphictr ansfer.16l
tue Unit of containerstowageequalto onezoft
(6.tm)container.Irr]
turnover Totalbusinessdoneby a companyin a
givenperiod,e.g.a year.[3]
underseparate
cover In a separateenvelopeor
parcel.[4]
underwriterPersonor organizationthat
examinesa risk and calculatesthe insurance
premiumto be charged.[ro,rz]
unsolicited Not askedfor, e.g.an applicationfor a
postthat hasnot beenadvertised[r5]
unvaluedpolicy Typeof insurancepolicyin
which the valueof the goodsto be insuredis
not agreedin advancebut assessed
ifloss
shouldoccur.Irz]
usanceBill of exchangethat is paidaftera period
of time. [9]
296
vAr Abbreviationfor Value Added Tax. [4]
ValueAddedTax (ver) A UK purchasetax. [4]
valued policy Type of insurance policy in which
the value ofthe goodsto be insured is agreed in
advance.[rz]
voyage charter Charter for a particular voyage
carrying a particular cargo. [rr]
wear and tear Normal deterioration of
something as it is used.[7]
wholesaler Personor company that buys goods
from manufacturers and sells them to retailers.
tt1
abbreviations 36
emails zz
letterheads rz
accident insurance 223
account sales 183
accounting errors and adjustments rrr-r5
accounts, settlement 78-8o,t7z
accounts rendered 77,z88g
accuracy 36-7
acknowledgement
oforders 63,56
ofpayments 8o
acronyms,inemails zz
addresses
emails zo-r
enrrplnnc<
rr
Ietterheadsrz
Ietters 8,ro
advertisements
forjobs 267
fortenders 4r
advice
of damagedconsignmentU
ofdelivery r9o
ofdespatchseeadvicenotes
ofoverdrawnaccountr42
reply t43
ofpayment 79,84,85
of shipment 1.99,
2o7,zog
advicenotes 63,67,59,7o, r4g,t5t,r87,z88g
advisingbanks156,z88g
'ararr',inemails 22
after sight r47
aSency
offer t74
replyto offer t75
request u8
replytorequest179
agentbanksz88g
agentsandagencies168-84,2889
seealso forwarding agents
airtransport 186-7
air waybills t86-7,r96,z88g
allrisks(er) r99,zzz,
z889
and(&)Co. 12,2889
appendixes,to
reports z6r,z889
appointments(arrangementsto meet)
making 243
conflrmation/cancellation/followingup 244
appointments(personnel)266-Bt
congratulations 247
nn (allrisks) 799,222
arbitration qz,z88g
'asat' 77,2889
'a sp er ' 288g
assessors
z4,z88g
seealso averageadjusters
assetsz88g
asterisks,inemails
zz
et s i oht
rrz
attachments2r,37,2889
attentionlines ro,z88g
averageadjusters z3o,z88g
s/r seebills of exchange
r/r, (billsof lading) rgS,zoz
backlogs,z88g
baddebtsz88g
balances77,2889
BalticExchange r97,z88g
bankaccountst38-9,z959
requesttoopenr4o
bankchargesz88g
bankdrafts78,rr8,2889
international 79
banktransfers78,2889
banking 137-67
barges r97
b.c.c.r4,zt,z88g
beneflciarieszzz,z88g
benefitpayments zzz,z88g
'nrx',inemails zz
(a/r) 78,rr8,z88g
billsofexchange
internationalbanking 79,r47-54,t48,l5o
requesttobankto acceptr53
requestto bankto forward r5z
bills of lading(n/r) r98,zoz,z88g
blind carboncopies 4, zr,z88g
blockedstyle 8,z88g
boardofdirectors
12
Bolerobills of lading r98
r98
BoleroProject
boxnumbers 39,2889
brochures 39,2889
brokers $9,229,2889
r99
BrusselsProtocol
'rrw',inemails zz
budgetsz88g
buildingsocietiesr38,z88g
bulkbuyers 45,2898
bulkcarriers ry7,2899
bulk consignments186,zrr,z89g
bulletpoints,in memos 251
bullionmarket g8,z89g
buyingagents qo,z99g
buyinghousesqo,z89g
-)
oo
X
Pagerefer-ences
in bold
: y c e . d : c a : ee x a m p l e s;
g r e p r e s e . t sa g lo ssa r y
e^:ry
c / r (carriage
forward) 5r
c/r (carriagepaid) 5r
cabotagelaws 186,2899
cao (cashagainstdocuments)r47
capitalletters,in emails zz
carboncopies t4,zt,z89g
297
!
xo
E
298
careersummaries 274,28gg
car8ovessels 197
Carriageandlnsurance Paid (crr) 5z
carriageforward (c/r) 5t,z89g
carriagepaid (c/ n) 5t,z89g
CarriagePaidTo(crr) 5z
cash against documents (cao) r47,z89g
cashcards ry8,289g
cashdiscounts 4o, 5t,62,z89g
cashon delivery(coo) 78,z8gg
catalogues z89g
repliesto requests r3,49,54,56
requestsfor 39,42
c.c. t4,zt,z89g
cEos (chief executiveofficers) rz, 255,256
certiflcatesof inspection r55
certiflcatesof insurance 63,233
certiflcatesof origin 55,zt4,z8gg
crn (Costand Freight) 5z,z3o
crs (containerfreight stations) 211
chairmen rz
chambers of commerce qo,z89g
seealso Intemational Chamber of Commerce
charterparties ry7,289g
charter(to) t97,z8gg
cheque cards g8,z8gg
cheques 78,79
euro- 155
traveller's r55
change of signature, notification t4o
cancellation r4r
chief executive officers(cuos) rz
c I F (Cost,Insurance and Frei ght) 5t, 52,67, z3o
crM (railconsignment notes) 186
crp(Carriageand Insurance Paid) 5z
circular letters 4t,z8gg
claimants z4,z9gg
claims zz3
fire damage zz7
malrne lnsurance 2Jo, 237
repliesto 228,48,49
clarity,inletters 36
claused(bills of lading) r98, z89g
clean (bills of exchange) 47,z8gg
clean (bills of lading) ry8,289g
clear (to), z89g
clearedgoodsr99
clearing agents r99, z89g
clearing banks (commercial banks) r38
closedindents qo,28gg
closings
complimentary fi,,2i,
covering letters with job applications 269
covering letters with orders 63
enquiries 4r,rz6
jobapplications 267
joboffers 277-8
replies to complaints roz
repliestoenquides 50
requestsforcredit rr9
requests to find an agent r7o
cun (roadconsignmentnotes)186
'coB',inemails 22
coD (cashon delivery) 78
colloquiallanguage 35
combined transport (multimodal) bills of lading
r98,2899
commercial agents r7o,z89g
commercial banks 138,z89g
commercial invoices 77,8r-2,r55,289-gog
commission t6g,t72,29og
delcredere r73
commission agents (commercial agents) r7o
commoditybrokers 169
commoditymarkets 169,zgog
compensation (insurance) 222,2gog
complaint s g 9-tr6, to3, ro1, 1o7,1og,114, 191,193
replies ror-2, ro4, 106,ro8, ro, rts, 192
compliments slips 62,zgog
complimentary closes tt, 2r,2gog
comprehensive cover 29og
requestforquotation zz4
quotation 225
conclusions,in reports z6o
condolences 248
conferencefacilities, enquiry 243
'Confidential', in letters r4
confidential information, emails zo
confirmed letters of credit 1.9,2909
confirmingbanks 156
conflrminghouses 138,169,2909
congratulations 247
consequentiallossinsurance 222,2gog
consignees$6,t87,29og
consignment basis 171,29og
consignment notes 187,29og
consignments 29og
bulk 186,zrr
consignors $6,r87,29og
consolidation 21t,2gog
consolidation seryices t87,zgog
consular invoices 155,29og
consulates r7o,2gog
containerfreight stations (crs) zrr,zgog
containerservices zn-r9
containervessels r97
container waybills zrr,zgog
containers 2tt,29og
content
letters z9-33
memos 251-2
reports 260-1
contracts 29og
agents and agencies 172
see4lso charter parties
copres
emails 21
letters 14
correspondentbanks zgog
andFreight (ctr) 5t,52,z3o
Cost,Insurance
counterfoils ry8,z9og
courtesy 34-5
courtesytitles 8,rt,z9og
coverforms,faxes 16
cover (insurance) 169,zzz,z9o g
covernotes 222,2909
coveringletters 29og
withbills of lading zo5
withinvoices 77
with job applications 268, 273
withorders 9,62-3,64
crr (CarriagePaidTo) 5z
credit 117-36,29og
credit cards 78,r39,29og
credit facilities tt8-zo, zgog
requests for tt8-tg, tzt,tz1
replies to requests trg-zo, r22,123,124
rrt, 11),29og
credit notes 77,1.o1.,
credit ratings tz6-8, zgog
credit references rr8, rzo, rz7-8
creditstatus t38,z9og
credit terms zgog
credit transfers 78,zgog
creditworthy (customers) n8,n6,n8,z9og
crossed(cheques,postal orders) 78,zgrg
currency,in quotations 5o
current accorrnts g8-9,z9tg
requesttoopen t4o
curriculum vitae (cvs) 268,z74, z75,zgtg
coveringletters 273
oh (documents against acceptance) r47
o/r (documents against payment) r47
o/s (daysafter sight) r47
oar (Deliveredat Frontier) 5z
dates
delivery 53,62
onletters 8
days after sight (o / s) t47,z9rg
oc seedocumentary credits
oon (DeliveredDuty Paid) 5z
oou (DeliveredDuty Unpaid) 5z
dealers t69,z9tg
'Dear...' to-tt,36
in emails zr,zz
debit authority 67
debit cards 78,49,2919
debit notes 77,7or,r1r,112,2gtg
debits r38,z9rg
direct r39
decimalpoint 36
declaration fo rrr.s 232,291.9
deductions (discounts) 4o, 5r,6z,7z,rg7
default r,8,z9tg
delcredereagents r73,z9rg
del crederecommission 173,2918
delayed delivery 7r
notiflcation to customer 73
enqulry 2o9
replyto enquiry 21o
delayedpayment 86-8
Delivered at Frontier (oar) 5z
DeliveredDuty Paid (oor) 5z
DeliveredDuty Unpaid (oou) 5z
Delivered Ex-O_uay(or o_) 5z
DeliveredEx-Ship(ous ) 5z
delivery
advice of r9o
requestfor quotation r88
quotations t88,t89, t94,t95
deliverydates 53,6z,7z.t7z
seealso delayed delivery
rlalirronr
mothnd<
5
a
o
x
6r
deliverynotes 186,z9rg
seealso standard sLrippingnotes
demonstrations
arrangrng 49-50
renrreclc
fnr
r n
departmentsof trade 77o,2918
deposit accounts \39, 2979
or o_(DeliveredEx-Quay) 5z
ors (DeliveredEx-Ship) 5z
despatch,advice of 63,67,59,70,149,151
despatchnotes zgrg
seealso delivery notes
digital signatures,emails zo
direct debits 139,291.8
directors rz
disagreements,agents and agencies r7z
discount (a bill of exchange) zgrg
drscounteddrafls t47
drscounts 4o,5t, 62,72,r97
dishonour (to) g2,2gr9
dishonouredbills r47
notif,cation t54
disputes,agents and agencies r7z
distributors t7o,2grg
documentary credits (oc) 79,t55-6, zgtg
documentation t57-65
documents against acceptance(D/A) 141,291'g
299
x
o
!t
tr
300
rcr (full containerload)zrr
fidelitybonds zz3,zz6,z9z9
figures(numerals)36
flnaidemandsforpayment88,97
flnancialyear zgzg
flreinsurancezzz-3
claim zz7
replytoclaimzz8
firm offers(quotations)5o
'r and(&)or' ('errorsand omissionsexcepted')8r
flxedterms(quotations)53
rot(ElectronicDatalnterchange)
r55
FOB(FreeOnBoard)
5z,z3o
EFrpos(ElectronicFundsTransferfromPointof forcemajeuretgg,2g2g
Sale)r39
foreignbills 147,2929
emails zo-2,23-7
foreignexchange48,zgzg
Intranet z5r
foreignexchangemarketgS,zgzg
emoticons,inemails
zz
forwardingagents6z,t9g,z9zg
'Enc.'/'Encl.'r4
enquiryforfreightrates
zo4
enclosures14,37
instructionsto zo3
encryption,emailszo
FreeAlongsideShip(res)5z
endingsseeclosings
FreeCarrier(rce)5z
(to), zgrg
endorse
FreeOnBoard(ror) 52,z3o
endorsedbillsofexchange
r47
freightaccountsrg8,zrt,zgzg
'freightprepaid'r98
endorsedbillsofladingt98
enquiriesandreplies
freightrates
r87
38-46,48-50
aboutcatalogues
andpricelists 54,55,56,58
requestsfor 2oo,2o4,212
aboutcreditratings rz6-8,t 29,1fo,131,132,133, repliesto requests2or,2o5,213
134,1j5
fullcontainerload(rcl) ztt,2g2g
a b o u tfre i g h tra te s a n d sai l i ngs
2o4,2o5,' rvr' ,i nemai l s
zz
212,21)
generalaveragesacrifice
abouttimecharter zr5,zr5
230,2929
generalcharterzr9
aboutvoyagecharterzr7,zr8
enquiryagentsn6-7
giro(bank) 78,zgzg
requestfor creditrating r34
Giro(PostOffice) 78
replytorequestr35
international 79
envelopes,
addressingr4
goodson approvalseeon approval
'errorsandomissionsexcepted"(E
greetings,
and(&)OE')
seasonal248
St,zgrg
greetings(salutations)ro-rr,36,z959
estimates5j,r9,2919
emails zr,zz
arrangementsandrequests
grossprrcesSo,2gzg
23,24,4t
tunr (movementcertiflcates)r87
groupage(consolidation)zrr
eurobondmarketr38,zgrg
groupagerates
L99,292g
eurocheques$S,2gtg
guaranteeszgzg
'ex-' z?],2gLg
guarantors2929
exclusiveagents/agencies
r7o,r7r
executorsry8,z9zg
Hague-Visbyrulesr99
exportdocumentationzrr
HamburgRules r99
exportmanagers169
handlingcharges2g2g
rxw (Ex-Works)5z
headerinformation,emailszr
headings,
in reports z6r
factoring 169,z9z9
245
hospitality,requestsandthanks
factors $9,z9zg
houseair waybills r87,zgzg
rl's (FreeAlongsideShip)
5z
faxes r6,r7,t8,t9
tara (InternationalAirTransport
qualityanddeliveryrr8
Association)r97
rca (FreeCarrier)5z
rcc (InternationalChamberof Commerce)
5r
documentsagainstpayment(o/n) 47,zgrg
documentsof title 186,r98,zgrg
domainnames,in emails zo-r
draw(to) zgrg
drawees47,2gtg
drawers 1.47,2919
'due' z31z9rg
duedatezgrg
Uniform Customs and Practlce for
DocumentaryCredits r55,t56
rcD(inlandciearancedepots)198,211
idioms 35
illness,good wishes 248
Imos (international money orders) 79
importdocumentation zrr
'Incorporated'/'I\c.' 72,2929
Incoterms 51,52,2929
indemnification 222,225
indemnify(to) zgzg
indemnity 170,2928
let t er s of r 98
indents r7o,2929
information
requestsfor 25,39,42,4j
replytorequest 54
inherentvice L99,292E
initials 36
inlandbills 1.47,2929
inlandclearancedepots(tco) ry8,zrr,z9zg
inside addresses 8,ro,z9zg
Institute CargoClauses 229-30
instructions for despatchforms t87,zgzg
rnsurance 221-4c
insurance brokers $9,zzg
insurancecertificates63,z33,zgzg
insurance costs 5r
insurance cover 169,zzz
insuranceofinterest 24,2939
insurance of liability 223,2939
intermodal(multimodal)billsoflading
r98
intermodal(multimodal)transport 186
intermodaitransport 186
International Air Transport Association (rata)
197,2939
intemationalbankdrafts 79,2939
intematronalbanking 147-66
International Chamber of Commerce (rcc) 5r,
z93E
Uniform Customs and Practicefor
DocumentaryCredits t55,r56
inter.ational money orders (Itvtos) 79,z93g
Intemational PostOftce Giro 79
I r . t enr at ionalUnder wr it ingAs s o c i a t i o n ( r u a ) 'L I d '
229 2939
ir.te:xei serviceproviders (rses) zo
L-.terr:e-'.; rn.itation for 276
lntra--.e: 2j:
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irlc-:es - 81 8z z93g
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'IOW', in emails zz
irrevocablelettersofcredit 1SS,2g3g
rsrs (internetserviceproviders)zo
issuingbanks 155-6,2939
rua (lnternationalUnderwriting Association)zzg
I
CL
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jobadvertisements 267
job applications 267-9,27o,272,273,274,27,
rejection 277
jobintewiews,invitationfor
276
joboffers 277-8,279
acceptance z78,z8o
jobtitles ro,r4
r/c (lettersofcredit) 78,155-6
language 34-5,1oo-1
layout
emails zr-z
letters 8-r5
memos 251
rcr(lessthanfullcontainerload) zrr
legal action (overduepayments) 88
legal actron (threaterung) r5,88,97
lessthan full container load (fCt) zrr,z93g
letterheads r2.z5r.2g3g
letters 8-r5
lettersofcredit (ri c) 78.t55-6,2939
letters of indemnity r98. z93g
liabilities
employers' zz3
shipping companies 199
lifeassurance 222,2939
lighters r97
limitedliability tz,zg3g
Iiners,passenger r97
Iines (products) 4o,z93g
Lloyd'sof London z2g,2g3g
loans r39
request for r44
agreementtorequest r45
refusal of request r45
long-termcreditfacilities n8,zg3g
loss insurance,consequential zzz
loyalty discounts 51,2939
rz,z93g
make up z93g
managing directors rz
marrnernsurance 229-39
measurements,inletters 37
memos 2St-2,25j,254,255,256,257,258,259
merchant banks r38,z93g
metalbrokers 169
'middlemen'(commercialagents) r7o
moneyorders,international(ruos) 79
301
x
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mortgages 138,2939
movement certiflcates fi7, zg3g
multimodal bills of lading r98, z93g
multimodal (transport) 186,zg3g
mutual (institutions) 48, z93g
negligence,shipping liability r98
negotiable documents 1,98,2939
negotiable securities Bg,2g3g
negotiable terms (quotations) 53
netinvoicevalue z93g
netprices 50,2939
new issue market r38,z93g
non-Conferenceships 197,2939
non-exclusiveagents/agencies z93g
non-negotiable waybills 211.,
2g3g
non-recoursefactoring fi9, zg3g
'normally', in quotations 53
'nnw'.inemails zz
numbers (figures) 36
on account,timeto pay 86
on approval (goods) 40, 2g3g
requestfor z5
replytorequest z7
ontheir own account 169,z93g
onlinebanking g8,z93g
open account facilities rr8, z94g
requestfor rzr
replyto request rzz
open coverpohcies zz9,z94g
requestfor quotation 234
quotation 235
notiflcation of shipment 236
claimandreply 237
openindents qo,2g4g
openrngs
compiaints roo
covering letters with job applications/cvs 268
covering letters with orders 6z
enquiries 39,126
job applications 267
offersofagencies 171
offers ofjobs 277
repliesto complaints ror
repliesto enquiries 48
requestsfor agencies 173
requestsforcredit rr8
requeststoflndan agent r7o
options 2949
order and sequence,in letters 3z
order forms 62,55
orders 6z-3,64,65,58
acknowledgement 63,66
refusals 71-2,74
702
'oroH',inemails22
'Ourref.' rz
out of chargenotes zn,zg4g
outofstock 57,7r
outstanding(balances)87-8, z949
overcharges(creditnotes) 77,11i.,
11j
overdrafts g8-9, t39,z94g
requestfor t44
agreementto requestr45
refusalofrequest146
overdraw(to) r38,z94g
overdrawnaccounts 138-9
adviceof r4z
replytoadvice r43
overduepayments 77,86-9
overheadsBg,2g4g
'p&p' (postage
andpacking)36,8r
packing(forgoods)63
packinglists t98,294g
paragraphs,
inletters 33
passenger
cargovesselsr97
passengerliners
r97
patterns,requestfor 4o
paying-inslips :.38,2g4g
yayLwas
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payment
acknowledgement 8o
adviceof 79,84,85
requestsfor 87-8,gl,gS,gt
repliestorequests 94,96
payment methods 4o, 51,78-9
paymentterms 40,62,72
'perpro'(p.p.) 4,zgSg
personal accident insurance 223
personnel appointments 266-8t
'nr,c' (public limited company) n, z94g
politeness 34-5,87,too-,
PostOffce Giro z8
International 79
'postageand packing' ('p&p') 8r, z94g
postalorders 78,2949
postcodes,envelopeaddresses r4
'p.p' ('perpro') rq,zgqg
premrums 222,2948
prepositions 36
presidents (chairmen) rz
price lists
requestsfor 39,42
repliesto requests 13,49,54,55
prlces 37,40,50
primary sources(for reports) z6o,z94g
principals 44,t69, 17z,zg49
'Privateand confidentiall Ietters r4
private banks t38,294g
proformainvoices77,zg4T
promissorynotes79,2949
propertyinsurance223
proposalforms 222,2949
prospectuses2949
requestsfor39,42
repliestorequests
49,54
protest(abiIl) lS,rql,zgqg
publiclimitedcompany(rlc) rz,z94g
punctuation 8,ro,rr
qualityanddeliveryfaxesrr8
quantitydiscounts 4o,5r,62,2949
quarterlyreportsz6o,z63,z949
quarterlystatements6z,z949
quotations(andrequestsfor quotations)5o-3,
2g4g
forbondinganemployeezz6
insurance 224,225
for comprehensive
fordelivery r88,t89,t94,t95
formarineinsurance2)1,212,234,235
ofterms 58
rail consignmentnotes(cltu) 186,z94E
railtransport186
'Re.'4,24
receipts t8g,z94g
z6o-r
recommendations,reports
recoursefactoingt6g,zg4g
referto drawer r54
referees(employment)zB,zg4g
references(credit)
rr8,tzo,rz7-8,294g
rz9,r3r
enquiriestoreferees
notificationoftake-uptz5
repliesto enquiries r3o,r3z,r33
j6,2g4B
references(inletters)
'Our','Your'rz,r4
refunds(creditnotes) 77,t11,11)
registerednumbers,letterheadsrz
'Re.'inletters r4
remittancesseepayment
reports z6o-r,262,253,264
reservations,airltrain/hotel
z4z
resum6s(cvs) 268,274,275
273
coveringletters
retailers 40,2949
retirement,goodwishes 248
revocablelettersofcreditt51,z94g
roadconsignmentnotes(cmn) 186,z94g
roadtransport186
roll-onroll-off(Ro-Ro)ferriesr97
sao (singleadministrativedocument)
r87
saleor return 4o,291g
sa-utationsro-n,36,295g
emails 21,22
samples
requestsfor40
repliesto requests49,55
savingsaccounts78,2959
scp (simplifledclearanceprocedure)
r87
seasonalgreetings
248
secondarysources(forreports)
z6o,z959
securities48,zg5g
negotiabler39
'selling'the product48,55
sender'saddress,letters
8
sequence(inletters)
3z
settle(to) z95g
settlement(ofaccounts)78-8o,t7z,z95g
shlp(to) z95g
shipbrokers
fig197,zg5g
sLripmentsz95g
advice r99,zo7,zo8
confirmation zo5
notiication 235
shippeCbrllsof
lading ry8,295g
shippedCeanon board' 47,2g;g
'shippeC:n board r98
shipping'-97-2'-0
ShippingCo:'.ierer:e
:97.2959
shipprngccc.;r:,en:s':i5.2959
shipprngl:arr'r::es:99
shippingma:c 295g
shippingorga:rat3.-s r97
sightdrafts slgr.:l-' s i8 47 2g;g
adrrcecfciespa:-.r5r
signatureb.c:k'-: 12gsg
signatures
emails zc zr
letters l
simp[citv ir. le:'ters 34
procedure(scr) r87,z95g
simplifiedclearance
document(seo) r87,z95g
singleadrnirus:rative
slang 35
smileys.rn emails zz
Societyfor WorldwideInterbankFinancial
(swrrr) 78
Commumcations
17o,171,2959
soleagents/agencies
soletradersD,2g5g
specialperilspolicies
zzz
specific(ciosed)
indents r7o
r4o,z95g
specimensignatures
spelhng 36
standardshippingnotesr98,295g
standbylettersof credit 156,2959
standingorderc 89,z91g
requestfor r4r
statementsof account 77,4,2959
stockexchange$9,2959
5
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o
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303
x
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stockexchangedealers169
stop(acheque)r4z,z95g
style 16,22,34-5
subjecttitlesz95g
Iettersr4
memos 2S1
reports z6o
'subjecttochange'50
subrogation222,2959
subsidiariesjg,z91g
summaries,in reports z6r
swrrr(SocietyforWorldwidelnterbank
FinancialCommunications)
78,155
248
sympathy(message)
syndicatesz2g,2g;g
transportcosts 5r
transportationr85-zzo
(un) t86
TransportsInternationauxRoutiers
traveller'scheques
512969
trialorders6z,z969
trustees ry8,296g
rr(telegraphictransfer)78
tue zn,z96g
turnover z969
under separatecover 49,55,2968
undercharges(debitnotes)
77,111.,112,2918
underwriters $9,229,2969
Uniform Customsand Practicefor Documentary
Creditst55,r56
uniform generalcharter zt9
z67,z7o,z969
unsolicited(jobapplications)
reply z7r
unvaluedpolicieszz9,z969
usancest47,296g
'usually',inquotations53
takelegalactionr5,88,97,2959
tankers ry7,2959
tariffs z95g
seealsofreightrates;prices
telegraphictransfer(rr)78,2959
telephonebankingr38
valuedpolicieszz9,z969
tenders 412gSE
vat (valueaddedtax) 5o,8l,z969
term drafts 78,2g;g
rz
numbers,letterheads
termsof agenry r73
vessels(types)tgZ
termsof payment 40,6z,z969
visits,arrangement49-50
flxedandnegotiable53
voyagecharterst97,296g
requestforchanger25
enquiryfor zr7
unfavourableTz
245,248
replytoenquiry zt8
thanks(messages)
three-letteracronyms(rlas) zz
waybills
through(multimodal)billsofladingr98
airr86-7, tg6
throughtransportbills t98
container 211
timecharters t97,zg6g
wearandtear z969
enquiryfor zr5
weights(inletters) 37
replytoenquiry zr5
wholesalers4o,z969
timeto pay
requestsfor86,89,9r
'Yourref.',letterct2,r4
repliesto requests86-7,9o,92
tt,21,22
186'
rrn (T ra n s p o rts l n te rn a ti o nauxR outi
ers)Y ours...'
titletogoods 16,z969
titles seecourtesytitles;job titles; subjecttitles
rlas (three-letter
acronyms)zz
toaccountz969
'to order' 198,2969
tonnagevaluet97,296g
tradeassociationsqo,z969
creditreferencesrr8
z969
tradediscounts 4o,5t,62,72,
tradejournals qo,z96g
tradeprices 4z,z969
tradereferences4o,z969
tramp (non-conference)
ships r97
transmissioncoverforms(faxes)16
transmissionreports,faxes16
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