A firm offer is Concept, definition and validity

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:54

What is a firm offer? Businessmen, to regulate their activities, quite often use the help of specialized tools. And it is the offer agreement that is one of such means. Simply put, this agreement satisfies some specific requirements of the parties at the time of the transaction. We will explore this topic in more detail below.

The concept of a firm offer

The first step is to understand the definition of the term under study. In simple terms, a firm offer is an offer from the seller to the buyer to sell goods on certain conditions that the seller sets. The question arises: "How is it different from ordinary advertising." The difference lies precisely in the fact that a firm offer is a proposal that contains specific and specific requirements that are needed, according to the offeror, to instill interest in your product. For example, a certain cost of goods, periodization of delivery and other necessary information and aspects.

Also, the offer contract is used asprotection in the division of the market between influential companies.

Views

The basic types of offers are: firm offer and free offer. The first is a document that indicates the initiative to sell a product from the seller to a specific and only buyer. The terms of the firm offer agreement vary and depend on the demand for the goods. More demand - shorter period.

In the case when the buyer agrees, he sends a response in writing or a counter-offer, where his own conditions are indicated, and awaits a response. If the seller agrees with the terms put forward, then the offer is accepted with a written notification of the buyer. In a situation where the seller does not agree, a notice is sent to the buyer that the seller is free from the obligations of the offer, or a renegotiation contract taking into account all requirements.

The absence of any response from the buyer within a certain time is equivalent to a refusal and releases the seller from the obligations of the offer. The product can be offered to another buyer only after the refusal of the previous one and exclusively on the original terms.

The transaction will be considered concluded only after the buyer's consent and confirmation of the consent by the seller's counter-offer.

A free offer is a document that is issued for the same type of product for a number of buyers or customers. At the same time, the seller is not bound by the offer and the deadline for giving a response is not set.

But it is important to remember that you should not give out too many similardocuments. The impression of a desire to sell the goods as soon as possible will not benefit anyone.

Approval of the buyer's transaction is confirmed by a counter-offer outlining the conditions. With the consent of the seller, the document is accepted and a notice is sent to the buyer. The contract is concluded and both parties are obliged to fulfill all the conditions. Before the conclusion of the contract, the seller has the right to withdraw the offer, if the contract does not indicate that it is unrequited.

A firm offer. Sample letter filling

Letter of offer is written both on the initiative of the seller and in response to a request. The document can be drawn up both during the negotiations of the parties, and by phone.

Conclusion of the transaction is considered the acceptance of the document and all the conditions set forth. Communication between the parties to the contract can take place until a final decision is made.

The structure of the offer is equivalent to the generally accepted sample letter in business style.

Conditions in the content of the offer

The offer must meet the following conditions:

Clear and clear description of the terms of the transaction and the requirements of the seller.
It is mandatory to have a clause on the obligations of the seller to the buyer.
The content should contain: the subject of the transaction, the name and price of the goods, basic information about both parties and other necessary information.
Required addressee.
It is allowed to register a call for the purchase of goods at a specific and fixed price(It is possible that the price may be indicated as "depending on the store").
Indicate the specific law, if it is used in the drafting of the agreement.

Features

Any offer has its own nuances:

Only essential terms and conditions should be present in content.
From the moment the buyer receives the offer, he is associated with the seller.
In the event that a notice of revocation of a document is received earlier or in time with an offer, the latter is considered not received.
If the offer does not specify certain conditions, then the addressee cannot withdraw the document before the specified deadline for confirmation.

Acceptance of offer

Acceptance - a response to accept the offer from the person who received the document:

An answer can only be complete and unquestioning.
Silence cannot be recognized as acceptance of an offer, except when it is described by law or the terms of the previous relationship of both parties to the contract.
Acceptance can be considered the performance of all actions specified in the contract (shipment of the product, performance of services, payment, etc.), within the period established for confirmation, if such does not contradict the instructions in the offer and relevant laws.

Validity period

Offer validity period - the period of time in which the recipient of the document must confirm or reject it.

Most of these contracts are irrevocable and have a limited duration. ATthe specified period, the buyer is obliged to give an answer, and the seller does not have the right to withdraw the offer. If no response is received, the transaction is considered not concluded. There are also revocations. The principle is the same, but the difference is that the seller has the right to withdraw the document in due time.

The validity period is usually regulated by law in cases where the transaction concerns property. As an example, you can give a fixed period of thirty days when acquiring a land plot.

Practical examples

A certain company advertises its product. It is the response to advertising that will be an offer (public). Consequently, the seller may refuse potential buyers and not produce an offer contract.

One company issued a cash invoice to another. The second pays for it. Delivery of goods is carried out. The delivery is fixed by an act on the performance of work or an invoice. In that case, a cash account is a TO document, payment is a confirmation (acceptance).

A simple example of a firm offer is a loan that has been approved by a bank and offered to a client. In case of consent, a transaction is made, the necessary operations are performed.

The legal entity receives an agreement signed by the second party (supply agreement). The deadline for acceptance is a week. Such an agreement is an offer. If a legal entity signs this project and sends a notice of consent, then this is an acceptance. In case of refusal, either an appropriate notification is sent, or a so-called “silence” occurs. The signingthe amended contract will be treated as a counter-offer, which the other party may accept or reject.