Reply For Goods – In the following reply the manufacturer takes the opportunity to welcome a former customer. His terms leave no room for misunderstanding. He makes it quite clear, for example, that the prices quoted are for one hundred of each type of watch ordered. The c.i.f. (cost, insurance and freight) price means that it includes, in addition to the cost of the goods, the cost of transporting and insuring them until they reach Manchester. It should be noted that under a c.i..f. contract the goods become the property of the buyer as soon as they are shipped. The buyer therefore assumes all the risks of transit and upon tender of the shipping documents must pay the agreed price, even if it is known that the goods have already been lost at sea. The trade discount “ex works” means that the amount is calculated on the cost of the goods only, that is on their price excluding insurance and transportation charges.
Here are the following sample of reply for goods from aboard.
22nd April 2010
Dear Mr Tony Smith
Thank you for your enquiry of 8th April. We are still making watches of the type referred to and welcome the prospect of your renewed custom. Owing to the increased demand for them, we can now offer these watches in a wider range than when you placed your last order.
For quantities of not less than one hundred of each type our prices, c.i.f. Manchester, are from £12.75 each for the “Popular” to £32.60 each for the “Aristocrat”.
These prices are subject to a trade discount of 40% on the ex works cost.
The enclosed booklet contains details of all our watches and will enable you to make a suitable selection. For all types we can promise delivery well within the period
of four weeks mentioned in your letter.