What Is a Negotiation Letter?

Correspondence negotiation refers to a written negotiation method through which negotiations are sought to reach a transaction. Correspondence between telegram and telephony is the same as that of telephony: both are long-distance, face-to-face negotiations, but one is expressed in words and the other is expressed in words. Correspondence methods are most commonly used in business negotiations in international trade, but they are rarely used in business negotiations in domestic trade.

Correspondence

Correspondence negotiation as traditional

Correspondence negotiation is one.

Overview of correspondence

As a specific form of business negotiation, the procedures of correspondence and telecommunications should be said to be consistent with the business negotiation process, that is, it also includes the five links of initiation, bottom-up, stalemate, concession and promotion. However, as a form of negotiation often used in international business activities, correspondence negotiation has unique connotation. In accordance with international trade practice, the negotiation of correspondence usually includes five links, namely inquiry, offer, counter-offer, acceptance and signing of a contract.

Correspondence Inquiry

Inquiry, also known as inquiry, refers to one party negotiating roughly asking whether the other party (or multiple parties) has the conditions to supply or purchase a certain commodity, just to understand the supply and demand situation to measure the strength and demand of the other party. Specific and detailed transaction conditions are further negotiated on the basis of communication between the two parties. Inquiries are mostly sent by the seller of the goods, but buyers can also send inquiries according to their needs. For example: From your letter of September 5, we noticed that you wish to develop textile trade with us. After studying your company's product catalog, we are interested in two tablecloths with article numbers 510 and 514. Please quote the lowest CIF price in Guangzhou, and indicate the quantity available and the earliest delivery time. If the price is reasonable and the quality is satisfactory, we will order in large quantities for a long time.

The purpose of the inquiry is mainly to find suitable buyers or sellers, not to formally negotiate with the buyers or sellers, which is not binding. However, when making an inquiry, you should consider the actual situation carefully and consider carefully that it is not advisable to make inquiries to customers in the same area at the same time, otherwise it will have a bad impact on future trading cooperation.

Letters and Telecommunications Negotiations

Offer, also known as an offer, is because one party to the negotiation wants to sell or purchase a certain product, and proposes various trading conditions for buying and selling the product to the other party in the negotiation, and expresses its willingness to close the transaction according to these trading conditions. Bids are usually issued by the seller. Because the offer is made by one of the buyers and sellers to the other party, the offer has two related parties, one is the offerer and the other is the offeree. If an offer is made by the seller, the seller is the offerer and the buyer is the offeree, and vice versa. According to the offerer's acceptance of the offer, after accepting the offeree, whether to bear the legal responsibility to conclude the contract, the offer can be divided into real offer and virtual offer. In the business negotiations in the form of correspondence, it is very important for both sides of the negotiation to understand the legal meanings of the firm and the firm.

(1) firm offer. A firm offer is a binding offer to the offeror, that is, the offerer is willing to conclude a transaction in accordance with the proposed conditions within a certain period of time, and the offer content has all the necessary conditions to conclude the transaction, and The offeror is bound by the offer within the specified period of validity, that is, it cannot be withdrawn or modified without the offeror's consent. If the offeror accepts it without objection during the valid period, the contract is concluded and the transaction is concluded. Already. There are three basic conditions for a firm offer:

Each transaction condition is detailed, clear and clear;

indicate that the offer is a firm offer;

Specify the effective time limit for the offer.

The complete affirmation of the real offer content is more attractive to the offeree, which can prompt the offeree to make a decision quickly and reach a transaction.

For example: Thank you for your inquiry about soybeans on February 20. In response, we hereby offer:

Product Name: Hebei Soybean, 1999

Quality: Level 1

Quantity: 500 metric tons

Price: $ 360 per metric ton, CIF London

Packaging: New sack, net weight about 50 kg

Payment: Irrevocable Letter of Credit

Delivery date: The offer is shipped one month after the letter of credit is received. The offer is firm, and your reply will be valid before March 15th.

(2) Virtual disk. Offer Without Engagement is a non-commitment statement made by the offerer and is not binding. For a virtual offer, the offeror can withdraw, modify, or change the content at any time. Even if the offeree accepts the virtual offer, it still needs the final confirmation of the offeror to become a binding contract between both parties.

Virtual disks generally have three characteristics:

There is room for manoeuvre in the offer, and terms such as "subject to our final confirmation" are often used for explanation;

The content of the offer is not clear, and no affirmative expression is given;

Lack of main trading conditions.

Virtual disks are more flexible to the offerer, and can modify trading conditions according to market changes to choose suitable opponents. However, the offeree often treats it as a general business connection without paying attention, which is not conducive to closing the transaction.

For example: Inquiry received on September 5. It is reported that 100 metric tons of sunflower seeds are produced in 1999, with impurities not exceeding 3%, oil content not less than 88%, CIF price of 700 US dollars per metric ton, in new sacks with a net weight of about 23 kg per bag. Withdrawal of L / C payment, the quotation is subject to the unsold goods. Mung beans are currently out of stock.

Correspondence in letter correspondence

Counter Offer refers to the expression that the offeree can not fully agree with the trading conditions mentioned in the offer by the offeree after receiving the offer. In order to further negotiate, the offer is modified to express an opinion. If the offeror returns the offer, the original offer will be invalid, and the original offerr will no longer be bound by the original offer, and the offer will become a new offer.

In business negotiations, if the original offeror makes new suggestions on the counteroffer issued by the offeree, and then sends it to the offeree to make a counteroffer. In international business correspondence, the negotiation of a business often requires multiple counter-offers and re-offerings, just as there are multiple bargainings at the negotiating table. Of course, there are also people who directly accept a contract without receiving a counter-offer after receiving a firm offer It's like a snap at the verbal negotiation table.

Acceptance of correspondence

Acceptance, also known as commitment, is an expression made by the offeree that it fully agrees with the entire offer or counteroffer. According to the United Nations Convention on the International Sale of Goods, an effective acceptance should meet the following three conditions:

Acceptance must be made by the offeree or a specific legal person to be effective. Acceptance made by a third party is not legally effective;

The content or conditions accepted should be consistent with the offer (or counter-offer), so as to indicate agreement on the transaction conditions;

Acceptance must be indicated within the validity period to have legal effect, and late acceptance or late acceptance have no legal effect.

For example: We hereby confirm our acceptance of our order of 100 metric tons of sunflower seeds, US $ 700 per metric ton CIFILagos, for shipment in December. I have sent you a copy of our sales confirmation No. GD964 in duplicate. Please sign back one for your records. Please open the L / C in our favor as soon as possible in order to arrange shipment in time. The terms of the letter of credit must be strictly consistent with the terms of the contract to avoid unnecessary modification in the future.

Letters and Telecommunications Negotiate and Sign Contracts

To sign a contract is the end of a business negotiation. After the buyers and sellers negotiate through the transaction, the transaction is concluded after one party's offer or counteroffer is accepted by the other party. However, in commodity transactions, it is usually confirmed by signing a written contract.

The contract is established after being signed by both parties, and it is legally binding. Both the buyer and the seller should abide by and execute all the contents of the contract, otherwise any party shall bear legal responsibility for breach of the contract.

Signing a written contract: Generally speaking, bulk commodities and important machinery and equipment must use formal contracts; for general commodities or transactions with small turnover, more use of "sales confirmation". The original of the written contract is usually in duplicate. After being signed by both parties to the transaction, the parties retain one copy.