CHAPTER 12
Offer to Sell Goods receives an inquiry from a buyer, one option is to return an offer to sell the goods in an informal format, such as a letter. The letter usually is brief, containing only the essential terms of the offer. If the buyer places an order, the letter offer and the order will be sufficient evidence of your contract for enforcement purposes, but it is best used for one-time, smaller transactions when the parties are not establishing a continuing relationship. If you use such a letter, it is wise to append additional contract provisions that are more detailed. You might print them on the reverse side of the letter.
WHEN A SELLER
Sample Contract: Offer to Sell Goods (front side) [seller’s letterhead] [date] [buyer’s company name] [buyer’s address] C O M M E N T : Your contract is binding against the parties who sign it. These parties should be identified by their legal names, company names, and addresses. A party who later needs to give notice to the other should use the address specified in the contract.
Re: Sale of [identification of goods] Dear [Sir/Madam]: We thank you for your inquiry of [date] regarding the purchase of [identify goods]. We are pleased to offer you our most competitive price of [currency and amount, e.g., US$50 per case of twenty-five]. The minimum order is [amount and unit, e.g., twenty cases].
This clause covers the essential terms of the agreement, with the exception of delivery. The identification of the goods should be a specific description, which may include a model number. Consider attaching the description to the letter to ensure that the specifications are clear.
COMMENT:
Please note that our acceptance of your order will be subject to the conditions printed on the reverse of this letter. Also, your order will not create a binding contract between us. After we have received your order, we will confirm in writing our acceptance, at which time we will then have a binding contract with you.
To avoid disputes over whether the buyer’s order constitutes an acceptance and creates a binding contract, you should make your intent clear. If you do not want to take the extra step of confirming the order, you may modify this provision to allow for formation of a contract on receipt of the order instead.
COMMENT:
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