1. Module 2-BC
Arya B Raj
Asst: Professor
GIMS

2. Quotation
• It is the offer from seller side for goods to be sold
at certain price, terms and conditions to the
intending buyer. This is not legally binding offer
unless it is coupled with the acceptance of the
intending buyer as it becomes a contract
enforceable under the law.
• In business such offers are made through letters
and we call them quotation letters. These letters
are also termed “Voluntary offers”.

3. Important points or information
before writing a quotation letter
• The first basic point is expressing thanks to the
enquiry made by the intending buyer
• There has to specific mention of goods,
services etc. by giving the name of its brand or
make, size, color, design etc. with the desired
quantity.

4. • There has to be specific and clear mention
about the price of the item desired by the
intending buyer by giving price per item, per
dozen, per gross etc. It should also state so to
what extra charges are included with the price
like packaging, carriage, freight, insurance,
taxes etc. If there are any discounts then it has
to be mentioned specifically in the quotation
letter.

5. • There has to be clarification about terms of payment,
whether it has to be made through cash, cheque or
draft etc.
• The terms of delivery has to be clarified as to when and
where goods are to be delivered.
• The period for which quotation is valid.
• In the end of the letter there has to be expression of
hope that the quotation would be accepted.

6. Drafting Quotation Letters
• (1) Calling for Quotation, similar to letters of
enquiry.
(2) Sending Quotation or reply to enquiry
letter.

7. Opening sentences for letters calling
for quotation
Examples:
• Please send us your quotation for the
following ………….
Please quote for the following ………….
We would like to have quotation for …………..

8. The closing sentences could be
• In case we find your prices and terms
competitive or commercially viable, we may
place an order with you.
If your prices compares satisfactorily or
favorably with others, we may place a regular
order.

9. For sending quotations
• The following opening and closing sentences
could be used for sending quotations.
Opening sentence: Examples.
• We give below our rates and other terms for ……
We are pleased to enclose our quotations for …….
We thank you for enquiry letter of ……..

10. • The closing sentences could be
Examples:
• We hope that you will find our rates competitive and
place your order.
We shall be glad to receive your order.
We trust you will find our quotation satisfactory or
reasonable and will favor us with your order.

11. Business order
• In business or commerce, an order is a stated
intention, either spoken or written, to engage in a
commercial transaction for specific products or
services.
• From a buyer's point of view it expresses the
intention to buy and is called a purchase order.
From a seller's point of view it expresses the
intention to sell and is referred to as a sales order.
• When the purchase order of the buyer and the
sales order of the seller agree, the orders become
a contract between the buyer and seller.