II. Counter-Offer (Price Too High)

Dear Sirs,

We thank you for your offer of 15th May and the patterns of Cloth No. D 677. The terms of your offer have our approval, but we feel that the price of £ 1.50 per yard is rather high. The cloth is for export to a market where competition is very keen, and at this figure our profit would be only nominal. However, if you could reduce the price to £ 1.25 per yard, we should be glad to place an order for some 30,000 yards.

We trust that in view of the size of this order you will see your way to making this concession.

Yours faithfully,

III. Refusal of Quotation

Dear Sirs,

We regret that we cannot make use of your quotation of 19th October for Tinplate, as we have been able to obtain this material at a lower price from another supplier.

Many thanks for the trouble you have taken in this matter.

Yours faithfully,

IV. Acknowledgments

Replies to Orders—Acknowledgments

Replies to Orders

When an order is received, it is customary for the seller to send the buyer a written acknowledgment. The acknowledgment of an order placed on the basis of a firm offer, in good time, and without any qualifications, is sent merely "for order's sake," as a final confirmation of a contract already in existence. In all cases where the seller is free to accept or refuse the buyer's order, the acknowledgment constitutes the seller's formal acceptance of the order, which results in a contract between buyer and seller.

Occasionally, however, a supplier is compelled to refuse an order. Perhaps the buyer's terms are not acceptable, the goods ordered are no longer manufactured or carried in stock, or the firm which placed the order is known to be financially embarrassed. Manufacturers selling through agents or dealers often have to refuse orders received at the factory.