Offer - what is it and how binding is this document?

offer what is it

The main document initiating any transaction is an offer. What is it and how to correctly compose it? Many of us are familiar with the term "commercial offer." We receive them, send them out, analyze them. Such an offer is an offer. What is this in terms of workflow? How binding is such an offer?

Typically, such a document is prepared in response to a specific request. Consequently, the offer period is limited in time, since it often indicates the price or product, the quantity of which is limited in the warehouse. The cost of production depends on the specific configuration, and on the exchange rate relevant for a given period. In addition, the terms of the offer also include delivery times. They affect the final price of the product. In business everyday life there is also the concept of โ€œpreliminaryโ€, or approximate offer. What is it and how to understand this term? Suppose an enterprise needs to translate documentation (instructions, annotations, warranties, etc.) into a foreign language. The managers responsible for import contact various translation agencies,
to estimate the cost of services. The document that appears as a result will be an offer. What is this in this particular case? In response to a request, the translation bureau will send a commercial proposal indicating the terms of implementation, payment terms and full price. If time is not very tight, managers have the opportunity to evaluate all the proposals and choose the most profitable for the company.

offer terms

However, an offer - or a commercial offer - is not, in the full sense of the word, a legally binding document. It is best if the text itself contains a paragraph indicating the advertising nature and expiration dates. Often - especially when it comes to expensive projects and equipment - the client can think for months. During this time, the market situation may change. For example, as a result of adjusting the exchange rate or changing major suppliers. Therefore, the offer has a limited duration. Large contracts take weeks or even months to prepare. In order to make the best business decision, it is necessary to collect information about suppliers, competitors, partners.

offer period

At the same time, every entrepreneur should be familiar with the rules for drafting such a document as an offer. What is it and what are the basic principles? First of all, the proposal may concern both a specific product and cooperation "in general". In the latter case, the final offers are put out for individual lots of goods or individual services. The offer includes: price, delivery / performance dates, possible discounts, payment terms. As a rule, such a document is compiled a bit "wise." It indicates prices with the possibility of certain discounts, terms, depending on the date of adoption of the proposal. The offer does not oblige to purchase goods from this particular supplier. Nevertheless, if we are interested in sales, we must draw up a document in such a way as to obtain competitive advantages. Therefore, the conditions for the provision of discounts, special promotions and expedited delivery must take into account the specific capabilities of our potential client.

Source: https://habr.com/ru/post/F13606/


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