BUSINESS TURMS “L, M, N, O, P”

L

Legal Tender: Paper or metal money that a Government decrees must be accepted as a lawful payment for debts.


Letter of Allotment: A letter informing as applicant for shares that certain shares that certain shares have been allotted to him.


Lien: A legal right of a person to detain or control property belonging to another until certain charges upon it have been paid or until some pecuniary claim against the owner has been satisfied.


Liability: Debt or responsibility.


Long: The day-to-day record of ship’s voyage in the form of a diary.


Long Bills: Bills of exchange drawn payable at period exceeding three days after date of sight.

BUSINESS TURMS “F to J “

F

Face Value: The value stated on the face of a security or insurance policy. This is the value on maturity or death.


Factor: A merchant who buys and sells on commission the goods if the bill drawn is not honored.


Free on Board (F.O.B.): It means that the sale price covers all charges, including delivery of goods free on board, truck, car or vessel at a designated point, either at the origin or the destination of a shipment.


Free on Rail (F.O.R.): It means all expenses up to loading of goods in rail will be borne by the seller.


Fraud: Securing consent to a contract by misrepresentation made with knowledge or by trick.

G

Goodwill: Value of a firm’s reputation.


Gilt-edged Securities: Stock on which interest is not only safe but also sufficiently high.


Grace Period: Any period beyond due date granted to a debtor by a creditor.


Gross Profit: Total allocable receipts of a period’s operations less the cost of the goods sold, before allowing for operating expenses and income tax.

H

Hire-purchase: A system for the purchase of goods, by which they are obtained on hire and each payment, is also treated as a past payment of purchases.


Hypothecation: Means Pledging of goods or a shop.

I

Imports: Commodities or services brought from foreign countries.

Impost: A tax, particular used to describe import duties.

Indent: An indent is an order for the goods. In large storehouses/factories workshops, etc., it is also used as a requisition for stores.

Indemnity: Security against damage or loss.

Indorsee: One to whom an instrument is transferred by endorsement.

Inland Bill: A bill of exchange drawn and payable within the country.

Inter Alia: Among other things.

J

Jerquer: Customs official who searches ships for dutiable articles. He also checks ship’s papers relating to imported goods.

Jettison: The throwing overboard a ship of goods etc., on account of bad weather or enemy action, etc. The owner of the property is sacrificed, for the preservation of the whole, has a claim upon the owners of the property preserved, who are bound to share his loss with him.

Jury: A body of person chosen and sworn to hear and pass verdict upon evidence brought forward in a trail, inquest or inquiry.

BUSINESS TURMS “A to E”

Every subject or branch of knowledge and every professional line has got some special terms which acquire particular connotation for that line or branch of knowledge.

In all trades and professions the functionaries use such terms the knowledge of which is very essential for those engaged in such professions. Students of the subject of commerce, therefore, would do well if they remember these terms. Some very important and often used terms are explained below.


A

Appeal Bond: It is a bond which an appellant executes to assure payment of costs and damages if the appeal is lost.

Agreement: It is a bargain or a contract to do or not to do certain things. It is always good if an agreement is put in writing, but it has been observed that even verbal agreements are also honored by parties, since there is always fear of losing the goodwill of the firm.

Advance Bill: It is a bill of exchange drawn before shipment of goods.

At The Market: It is an order to a broker to sell things at once at the highest possible price.

Ad Valorem: As per value.

Ad Valorem Duty: It is tax levied on the value of, and can be changed only by a special resolution of the members.

All-Risk Insurance: It is an insurance policy insuring against loss caused by all types of dangers except those specially mentioned on the policy.

Acceptance: It is writing of name across the face of the bill in the drawee of a bill of exchange. By doing so he binds himself to pay the same when due.

Act of God: Any act which is beyond human causes and is beyond foresight.

B

Brokerage: Brokerage is the remuneration which is paid to the broker. It is usually some percentage.

Broker: He or she is an agent who buys or sells on behalf of other people without taking possession of the goods.

Bad Debt: It is a debt which is thought to be no more recoverable from the debtor.

Bond: It is a sealed document by a person, by which he binds himself, his heirs, executors and administrator to pay a certain sum to another person on or before a specified date.

Bonded Goods: Goods stored in a warehouse by an owner who has execute a bond to pay duty or taxes due.

Bill of Entry: It is a document which importers give to the customs Authorities, describing goods before they are landed.

Bonded Warehouse: A government warehouse (or building) in which bonded goods are stored.

Brand: It is a trade mark of thing applied on packages, tins and other containers.

Back Bill: It is a statement of unpaid charges.

C

Call Loan: It is a loaned money payable on call or demand. Such loans are got by securities which can readily sold if money is not paid. The limit allowed for payment before selling the securities is 24 hours.

Bearer Cheque: It is a cheque made payable to payee or bearer.

Order Cheque: It is a cheque made payable to payee or ‘order’.

Crossed Cheque: A crossed cheque is one made payable to the payee only.

Post-dated Cheque: It is a cheque in which a future date is inserted. It is not encashable on the date of its issue.

Stale Cheque: It is a cheque which is not presented for payment within a reasonable time which is fixed in a country. In India a cheque becomes a stale cheque if it is not presented for payment for six months from the date it bears.

Circular Note: It is a letter of credit issued by a bank to its client enabling the holders to obtain payment at various places abroad.

Credit Bill: It is a bill of exchange where the debtor has arranged in advance for credit with the drawee.

Credit Note: It is a form in which are mentioned the details of seduction or rebate from already rendered account.

Creditor: A person to whom some debt is owned by another person.

Consignment: It is a form of bailment in which one party sends goods to another party for sale.

Closing price: It is the price on which the sales are made in an organized market on a particular day.

Caveat Venditor: It is a Latin phrase meaning ‘Let the Seller Beware.’

Caveat Emptor: It is a Latin phrase which means ‘Let the Buyer Beware’. All risks are of the buyer except fraud or other implied warranties.

D

Debtor: It refers to a person, company or firm which owes a certain amount.

Trade Discount: It is a discount which producers or manufacturers allow to their dealers. It is generally a certain percentage on the printed price of the product.

Deed: It is written or printed document under hand and seal.

Dividend: It is a share in the profit payable to a shareholder. It also refers to interest paid on investment.

Debenture: It is a written acknowledgement of debt charging the whole property for repayment.

Dead Weight: The weight of the vehicles which carry freight without any load in them.

Dead Stock: List of goods for which there is no demand.

Demurrage: Amount charged for delay in talking delivery of goods.

Default: Amount charged for delay in talking delivery of goods.

Days of Grace: Days of Grace is extra time allowed by convention or law for making certain payments.

Depreciation: It is slow and steady decrease in value.

Dies Non: A non-business day.

E

Executor: A person who is appointed by a will to get its prevision carried out.

Endorsement: Writing of the holder’s name on the back of a cheque or bill of exchange in favor of another is known as endorsement.

External Debt: It is a debt held by persons outside the country.

Embargo: It is an order of a government preventing ships to enter or leave the ports of the country it rules.

Equitable Mortgage: It is a simple deposit of title-deeds as security for a temporary loan.

INSURANCE AND TAX LETTERS

ASKING FOR INCOME TAX FORMS

NICHOLSON AND SONS,
22/10, Connaught Place,
New Delhi.

To,
The Income Tax Office,
Ward 4, I.T.O. Building,
New Delhi.

Sir,
We shall be obliged if you could send us Income Tax Forms for individuals and firms for the assessment year 1998.
I am sending Rs. 50/- towards the cost of these forms.

Yours faithfully,
P. C. Mehra
(Proprietor)

Dated: 1st March, 1998

LETTER FOR REFUND

NICHOLSON & SONS
A-17, Connaught Place,
New Delhi.

To,
Income Tax Office
I.T.O. Building,
New Delhi.

Sir,
With reference to your assessment order dated…….. of the year ……… I may say that I have paid Rs. ……….. as income tax vide cheque No…….. But assessment is for Rs……..
I shall be glad you refund the excess amount.
Thanks.

Dated: 5th June, 1998

APPOINTMENTS AND CIRCULARS

APPLICATION FOR THE POST OF A SALES OFFICER

To
The General Manager,
Titan Watches,
42, Bannarghutta Road,
Bangalore (India).

Subject: Application for the Sales Executives

Sir,

With reference to your advertisement dated August 10, 2001 in the Times Of India for the post of two sales Executives.
I am a young man of 25 yrs possessing a pleasing personality. I have been a sportsman. I can stand physical strain and so can put in hard work, I can communicate with fluency in English and Hindi. As I did my schooling in an English medium school my command over English is quite good. I have my own conveyance and driving license.

I have worked for 5yrs as sales Executive with Saru Semetling Pvt. Ltd Chennai which manufactures, soldier wires. It was a leave vacancy so I was relieved after three years.
My full bio data is attached with this application.
I shall feel obliged if you give me an opportunity to serve.

Yours faithfully,
Arvind Rao

Dated: 17th August, 1997

INVITING TO A PROTEST MARCH

K.K. Publishers,
10/11-B, Darya Ganj,
New Delhi.

Sir,

As the price of the paper has been abnormally increased it has become increasingly difficult for us to publish books which may suit the pocket of every customer. Our profit has become so little that we cannot meet even our fixed expense.

So we have organized a protest march. After meeting at Alexander club on 29th July 1999 at 11 a.m. we will march to the president’s, Vice president and Prime Minister’s house to lodge our protest against the hike in the price of paper. We will also submit a memorandum to this effect. Please intimate your approval.

S. K. Burman
(President)
[F.O.P.]

Dated: 23rd July, 1999.

CIRCULAR FOR DONATIONS

Excellent Orphanage
2, Ansri Road,
Darya Ganj
New Delhi .

Dear Friend,

There are one lakh orphans in the above mentioned orphanage. The land was allotted by the government and with the help of donations we had been able to construct hundred rooms. We need at least one hundred more because more than four children should not be kept in one room.
In addition to these we need nearly 20, 000 beds, and 16000 chairs, and 2000 tables.

We have not been able to make adequate arrangements for games, because we do not have enough funds to spare. With lot of labor we have been to take adequate arrangements for their school education. We have to make arrangement for dropping them at schools. Their school dresses are to be got stitched.
We can not manage these things till we get at least fifty lakh rupees. We meet the expenses on food, servants and other sundry things from some monthly donations by business houses.
You are requested to donate liberally so that these unfortunate children be brought up with dignity.
Send cheques “Payee’s Acc” Excellent orphanage. This amount is exempted from income tax.

Uma Singh
(President)

Dated: 28th Aug., 1998.

INVITING AT A FAIR (CIRCULAR)

Trade Fair Authority, 33,

Nehru Place,

New Delhi.

Sir,

Like since last 19yrs, this year also we are organizing a trade fair at PRAGTI MADAN from 9th august 1998 to 28 august 1998. There are two thousand stalls, of different sizes. The charge for each stall, with its location, is given on a separate sheet attached to this circular. As you know the manufactures from all over the world will participate. We have to accommodate all the foreign industrialists definitely so we will advise you to book your stall by making the requisite payment by the 23rd July 1998.

C. H. JAY

(Organizer W.T.F. )

Dated: 8th July, 1998.

TERMS OF PAYMENT

REQUEST TO DEFER PAYMENT

KHANNA ENTERPRISES
82, D. B. Gupta Road,
Karol Bagh,

New Delhi (India).

To
Dhara
E-18, Surajpur
Dadri Road
Noida (India)

Dear Sirs,
We have received your letters of 15th July 1999; reminding us that payment of the amount of March 1999 statement is overdue. we we under under the impression that payments was not due until the end of this month ,when we would have no difficulty in seetling your account .it would seem,however that we misunderstood your terms of payments
If u could allow us to differ the payments for a further three weeks our present difficulty
Is purely temporary.before the end of this month payments are due to us from a number of our regular costumers who are notably prompt payers.
We very much regret having to make this request but hope you will be able to grant it.

Yours faithfully,
Abhishek.j.
(Proprietor)

Dated: 28th July, 1997

REPLY OF THE LETTER

Dear Sir,

Having carefully considered your letter of 28th July 1997 we have decided to allow you to defer payment of the amount standing in your name.
We grant the request because yours is an exceptional case, you were very prompt in settling your accounts in the past and hope that in future dealings you will be able to honor our terms of payment. As you do not seem to have been clear about them we take this opportunity to remind you that are as follows.
(a) We allow credit for 60 days from the date of invoice.
(b) 4% extra discount will be admissible if payment is made within 15 days.

Yours faithfully,
S. K. Madan
(Sales manager)

Dated: 4th Sept., 1997

REPLY TO THE LETTER DECLINIG REQUEST FOR DEFFERING PAYMENT

HI-FI ELECTRONICS
6/1, Nehru Place,

New Delhi.

To
Bindra Electronics
4/1, Chowrangee centre
Calcutta.

Dear Sirs,
I am replying to your letter of 28th August 1997 asking for immediate payment of Rs. 18000 due on your invoice no. P1/3224/97-98 dated 26th July 1997.
When we wrote promising to pay you in full by 12th of this month, we expected to do so, but unfortunately we were called upon to meet an unforeseen and unusually heavy demand earlier this month.
We are therefore enclosing a cheque for Rs. 10, 000 on account and ask you to be good enough to allow us a further three weeks to pay you the balance. We now have no special commitments outstanding and fully expect to be able to settle your account in full by the end of November. If you could grant the deferent we would be obliged.

Yours faithfully,
K. P. Singh
(Proprietor)

Dated: 4th Sept., 1997

REPLY OF THE PREVIOUS LETTER

BINDRA ELECTRONICS
4/1, Chowrangee Centre
Calcutta.

To
Hi-Fi Electronics,
A-19/1, Nehru Place
Delhi (India).

Dear Sir,
Thank you for your letter dated 4th September 1997 sending a cheque of Rs. 10000 on account and asking for time to pay the balance.

Your account is now more than two months overdue we find your present cheque quite insufficient and it is hardly reasonable to expect us to wait for another three weeks for the balance particularly as we invoiced the goods at an especially low price and told you so at that time.
We realize your difficulties, but need hardly remind, you it is in our customers
Long-term interests to pay their accounts promptly and thus quality for discount and at the same time build a reputation for financial reliability. We hope therefore in your own interests you will make arrangements to clear your account without further delay. We look forward to receive your cheque for the balance within the next few days.

Yours faithfully,
Peter John.
(Sales Manager)

Dated: 14th September, 1997

TERMS OF BUSINESS

UNABLE TO REDUCE PRICE OF GOODS

NIDHI GARMENTS
6/1, Pul Road Hyderabad.

To
Nehru Garments,
B-12, Okhla Industrial Area,
Phase-1, New Delhi (India).

Dear Sirs,
We have carefully considered your counter proposal of 12th May 1997 to our office of ready-made garments but very much regret that we cannot accept it. The prices we quoted in our letter of 8th April 1997 leave us with only the minimum margin of profit. They are in fact lower than those of our competitors for goods of similar quality.
The stuff used in the manufacturing of our “Garments” is treated with a special patented process that prevents shrinkage and increases durability. The fact that we are the largest supplier of garments in this country is in itself an evidence of the good quality of our products.
If, having given further thought to the matter, you feel you cannot accept out offer, we hope it will not prevent you from approaching is on some other occasion. We shall always be happy to hear to hear from you and will carefully consider every proposal likely to lead to business between us.

Yours faithfully,
P. K. Jain
(Marketing Manager)

Dated: 7th June, 1997

REJECTION REGARDING DELEVERY TERMS

AJANTA WATCH Co.,
M-13, Connaught Place,
New Delhi (India).

Dear Sir,

We were very glad to receive your order of 18th Jan 1993 for 60 Quartz ‘Titan’ watches but, since you want delivery before Holi we deeply regret that we cannot supply.
The manufacturings are finding it impossible to meet current demand for this popular brand of watches. We ourselves placed an order for twenty watches a month ago, but were informed that all orders are met in strict rotation and that our own could not be met till November.
I gather from our telephone talk this morning that your customers are unwilling to buy watches of other makes. I hope therefore you will be able to meet your needs from some other source.

Yours faithfully,
P. K. Lal
(Area Manager)

Dated: 2nd Feb., 1998

MODE OF THE GOODS DELIVERY

SELLER OFFERS GOODS ON CONSIGNMENT

OLYMPICS ELECTRONICS
4/2, Madiwala Market,
Bangalore (India)

To
M/s Titan Watches Co.,
L-16/6 Hazratganj, Lucknow.

Dear Sirs,
We are anxious to extend our market for our Product which at present enjoys a limited sale in Lucknow.
We therefore write to suggest that you allow us to send a selection of our goods on consignment. We would allow you commission of 20% on gross proceeds and expect to receive your sales account, with payments, at the end of one month period following the month of delivery.
In accepting our proposal you take no risk since we ourselves would meet all expenses connected with the return of goods unsold. On the other hand, the arrangement would enable you to offer your customers an attractive range of modern watches at very reasonable prices.

If you are interested in our proposal we suggest a formal agreement on the lines of the model agreement enclosed।

Yours faithfully,
R. Lal
(Area Manager)

Dated: 18th Oct., 1997

RETAILER’S ACCEPTANCE OF GOODS ON CONSIGNMENT

TITAN WATCHES

L-16/6,

Hazratganj, Lucknow

To
Olympics Electronics,
4/2, Madiwala Market,
Bangalore (India).

Dear Sirs,
Thank you for your letter of 18 Oct. 1997. We have carefully considered your proposal to send a trail delivery of our Olympics watches and we are sending our representative for selection of our most popular designs. We hope you will find ready sales for them. Your suggestion to submit accounts and to make payments on two monthly bases is quite satisfactory. You are willing to allow us a commission at 20% calculated on gross profits.

You will send us bill and other documents. By the time we receive them you enclosed a proforma invoice showing prices at which the watches should be offered for sale.

Because of its good quality, attractive designs and reasonable price, these watches will sell well and we think it will have good sales in our market.

Yours faithfully,
A.R. Rehman
(Manager)

Dated: 29th July, 1990

EXECUTION OF ORDERS

QUOTATION FOR UNDER GARMENTS

SANGER UNDERGARMENTS EXPORTERS
34, Chandni Chowk,

Delhi (India)

To
M/s Atul Mills,
23, street lane,

Mumbai (India).

Dear Sirs,

Will you please quote for the supply of under garments.

We require prints that will retain its shape and size and after washing will not discolor. We shall be glad if you state your prices, including delivery at our works, and send us samples. Delivery would be required within one week of order.

Yours faithfully,

R.K.Patil

(Manager)

Dated: 16th Aug., 1998.

REPLY OF PREVIOUS LETTERS

ATUL MILLS
23, street lane,

Mumbai (India).

To,
M/s SANGER UNDERGARMENTS EXPORTERS
34, Chandni Chowk,

Delhi (India)

Dear Sir,

We thank for your inquiry through your letter no. RM/20 dates 16th Aug. 1998 and as requested, we are sending you patterns of under garments prints. They are in the current stock and rates are as follows.
Pattern No. Prices (net)

12.............. 58 bucks per meter
35............. 60 bucks per meter
04............ 89 bucks per meter
10........... 29 bucks per meter


These prices include delivery at your shop. All of these are good quality and are in popular demand. We guarantee that they will not discolor or shrink on washing.

We can promise delivery within 15days from receiving order and hope you will find both samples and prices satisfactory.

Yours faithfully
Ramesh Pul
(Manager)

Dated: 20th Sep., 1990

QUOTATIONS FOR CABLES

DESU, HEAD OFFICE
9/2, Surya Kiran Building,

New Delhi (India).

To
M/s Popular Cables,
C-12/5, Sadar Market,

Delhi (India).



Dear Sirs,

You have previously supplied us cables and we should be glad if you would now quote for the items named below, manufactured by Saru Cables. The cables we require are listed in your Catalogue no. 24 and 38.

Catalogue No. Dimensions
No. 28.............3/2
No. 36.............3/41
No. 27.............7/20
No. 40...........1/40


Prices quoted should include packing and delivery at the above address.

While replying please state (i) discount, (ii) mode of payment, (iii) date of delivery

Yours faithfully,
K. Madan
(Manager)

Dated: 19th Oct., 1996

REPLY OF ABOVE LETTER:
POPULAR CBLES
C-17/7, Sadar Market,

Delhi.

To
DESU Head Office,
9/1, Surya Kiran building,
New Delhi.

Dear Sirs,
With reference to your inquiry of 19th Oct. 1996 for further supply of our cables, we are pleased to quote at follows:


Cable Dimension Rs. Per Cable
3/2...................... 178 each
3/41.................... 120 each
7/20................... 238 each
1/40................. 140 each

These prices include packing and delivery charges.

We can deliver from our stock and will allow you a discount of 100% but only on items in quantities of 200 or more. In addition, there shall be a cash discount of 5% on total cost if payment were made within 45 days from the date of invoice.

We hope you will find these terms satisfactory and look forward to your order.

Yours faithfully
Satrajit Jana
(Manager)

Dated: 27th Sept., 1997

FOREIGN BUYER’S REGARDNIG QUOTAIONS OF FOREIGN BUYER’S

MARSHAL ELECTRONICS
1, Stevenson Street,
Singapore.

To
R. Jana Electronics,
47, Nariman Point
Mumbai (India).

Dear Sir,

We have recently received a number of requests for your portable generators and have good reasons to believe that we could place regular orders with you provided your prices are competitive.

From the description in your catalogue we feel that your “LG 2000” range is most suitable and should be glad if you would send us your quotations for this range in both small and big sizes delivered C.L.F. Mumbai. Provided the prices are reasonable we should place the first order of 30 generators namely 20 of each of the two qualities, Shipment would be required within four weeks of order.

We should particularly stress the importance of price since the principal market here is for mass produced goods at popular prices.

Yours faithfully,
R. K. Nair
(Manager)

Dated: 28th Oct., 1997

REPLY OF THE LETTER

R. JANA ELECTRONICS
47, Nariman point,
Mumbai (India).

To
M/s Marshall Electronics,
1, Stevenson Street
Singapore

Dear Sirs,

Thank you for your enquiry of 28th Oct. 1997. We were glad to receive it and to learn of the enquiries you have had for our portable generators. Our “LG-2000” range of generator is particularly suitable for tropical climates and during the past year we have supplied this range to dealers in several tropical countries. From many of them we already had repeat orders. This range is popular not only because of its light weight but also because of its fuel efficiency. This generator generates electricity for two hours in one liter.

For the quantities you mention we are pleased to quote as follows:

16 “LG 2000” (Small) @ Rs. 10, 000 1, 50000
16 “LG 2000” (Big) @ Rs. 10, 000 1, 50000
Total Price 3, 00000
Less 25% trade discount 75000
Net price, f.o.b. New Delhi 2, 25000
Freight (New Delhi to Singapore) 20000
Insurance 7000
Total 2, 52000

Terms of Payment: 3% interest after one month from the date of invoice.
Transportation: within 7weeks of receive order.

We feel that you may be interested in some of our other products and enclose descriptive booklets and a supply of sales literature for use with your customers.
We look forward very much to receive your order।

Yours faithfully
R. N. Mishra
(Manager)

Dated: 15th Sept., 1997

BUSINESS TENDERS AND QUOTATIONS

PUBLIC NOTICE FOR TENDERS

BHEL, Ranipur 22,

Haridwar (India)

Sealed tenders are invited from reputed agencies/contractors for following services:

• Supply, fabrication and erection of aluminum partitions of various specifications.
• Supply and fixing of glass, and wood paneling/partitioning.
• Supply of wooden furniture like work stations, chairs, executive tables, laboratory tables, conference table etc.
• Catering services (round the clock) for about 500 staff members.
• Pest control services.

Tender must be submitted on the official form obtainable from the The Manager, BHEL, Ranipur, and Haridwar by not later than 1.00 noons Friday, and the 15 June.

The company does not bind itself to accept the lowest or any, of the tenders submitted.

Ajay Handa
(Secretary)

Dated: 18th march 2004

ACCEPTANCE OF THE TENDER

Confidential

BHEL, Ranipur
22, Haridwar (India)

To
M/s Lal & Co.,
F-36, Connaught Place
New Delhi

Dear Sir,

Having read the terms and condition in the official form supplied to you of the services for pest control during 200 you will be glad to learn that it has been accepted.

Youres faithfully,
Raja Ram
(Secretary)

Dated: 15 April, 2004

REJECTION OF SELLERS QUOTATIONS

ASIAN PAINTS
G-1, Industrial Area, Phase-1
Delhi (India)

To
M/s Sharp Metal Works
Sector 19, A-13
Noida

Dear Sir,

In reply to my enquiry you were good enough on 8th august, to quote for the supply of empty oil containers and to send me a sample.

I thank you for your trouble in this matter, but as your prices are much higher than those I have previously paid for the containers of the same quality, I regret not being able to give you an immediate order. I shall now invite fresh tenders from other dealers, but may find it necessary to refer to you again if their prices are not lower than the prices quoted by you.

Yours faithfully
Deepak Singh
(Purchase Manager)

Dated: 17th Aug., 1999

REQUEST FOR BETTER TERMS

SINGH COTTON PRINTS
D-12 Phase-3,
M.G. Road New Delhi.

To
Sheikh Shipping Mills
8, Modi Nagar (U.P.)
India.

Dear Sirs,

I write to thank you for your letter of 15th June 1998 and for the samples of cotton prints you have very kindly sent.

I appreciate the good quality of these cotton prints, but unfortunately the prices appear to be on the higher side even for cotton prints of this quality. To accept the prices you have quoted will leave me only with a small profit on my sales since this is an area in which the principal demand is for articles in the medium price range.

I like the quantity of your goods and also the way in which you have handled my enquire and would welcome the opportunity to do business with you. May I ask if you could make some allowance your quoted prices that would help us to introduce your goods to our customers. If you cannot do so, then I must regretfully decline your offer as it stands.

Yours faithfully,
G.L.Singha
(Proprietor)

Dated: 7th Aug., 1990

REPLY OF THE LETTER

XVAR SIPPING MILLS
9, K.G. Road Bangalore

Dear Sir,

I am sorry to learn from your letter of 9th Aug. 1997 that you find our prices too high. We do our best to keep prices as low as possible without sacrificing quality and to this end are constantly enquiring into new methods of manufacturing.

Considering the quality of goods offered we do not feel that the prices quoted are all excessive, but bearing in mind the special character of your trade, we have decided to offer you a special discount 20% on a first order of Rs.5, 000 or $100. We make this allowance because we should like to do business with you if possible, but I must stress that it is the farthest we can go to help you. At least I hope this revised offer will now enable you to place an order.

Yours faithfully,
Atul Chauhan
(Sales Manager)

Dated: 24th Aug, 1996

ARCHITECHTURE OF BUSINESS LETTER:

An ideal business letter had the following eight parts:
(i) The Letter-Heading
(ii) Date and Reference
(iii) Name and Address of the address
(iv) Words of Salutation
(v) Body of the Letter
(vi) Closing Line
(vii) Complimentary words above signatures


The Letter-Heading: This portion of the letter is printed. It is at the top of the letter and it contains the name, postal and telegraphic address of the firm. Telephone number and cable code are also given. Sometimes, the nature of the firm, if any, are also given under the name of the firm, if the firm is limited concern then the word Limited should also be written in the Letter-Head. Almost all business concerns get their letter-heads printed.


Date and Reference: Date of writing the letter and reference number of the letter must also be written under the Letter-Headings. The date is written on the right corner and reference number on the left corner.


Name and Address of the Addressee: Name and address of the person or firm to whom the letter is addressed are written on the left hand. The word 'Mr.' or 'Messrs.' is written before the name of the person or firm as the case may be. If the person addressed to is a woman then the word ' Miss' or ' Mrs.' is written, and if all partners in a firm are ladies then word ' Madams' is written.
While writing letters to educational institutions or other such Associations or trust 'Principal', 'President','Secretary' or ' Manager' is to be addressed.


Word of Salutation: These are the words with which we address the person or persons to whom we are going to talk through our letter. Various words of salutation as 'Sir', 'Dear Sir', 'Dear Madam', 'Dear Miss', 'Dear Mr.' and 'Gentlemen' are written. Comma is always placed after the words of salutation.


Body of Letter: The contents of the letter are given in the body of the letter. The letter is divided into paragraphs, each point being mentioned in a separate paragraph. In the first para, previous correspondence may be referred to, the next para may contain the main purpose of the letter, and in the next paras other business interests may be mentioned.


Closing Line: In the closing line, assurance of best services or of best co-operation may be given. Sometimes, the address is thanked in advanced for a favorable reply or orders for purchase.


Complimentary words at the end: Complimentary, words, like ‘yours sincerely’, ‘yours faithfully’, ‘yours obediently’,’ yours respectfully’ or ‘Your obedient servant’ are written at the end below where you are to put your signature.

The complimentary words must suit the words of salutation written above the body of the letter. Some examples are given here:
Dear Sirs Yours truly, Yours faithfully
Sir, Your obedient servant,
Madam Your obedient servant,
Gentlemen, Your obedient servant,
Dear Sir, Yours faithfully , Yours truly ,
Dear Madam, Yours faithfully , Yours truly ,
My dear Sir, Yours very truly ,
My dear Madam, Yours very truly
My dear Sirs, Yours very truly
Dear Mr. Yours sincerely
Dear Miss Yours sincerely
Dear Mrs. Yours sincerely


Signature: The signature of the writer of the letter is to be appended just below the complimentary words. The signature means writing of one’s name as mark of approval of what is written above. The name should be written in legible hand. Generally, the name is typed in brackets for the sake of clarity. Designation of the writer should also be mentioned where desirable.

Tips for business Letter Writing

1. Clear in Language and Expression:

The letter should be clear in language and expression. There should not be any ambiguity of words: no vague expression should be included. Everything must be clear and easily understandable.

2.Definite and Exact about Purpose:

A business letter should have a definite purpose and exactness of communication. Round-about expressions are not expected. A letter should have one definite purpose. If there are more than one subject to mention then separate letters should be written so that proper filing can be done at the other end, otherwise, it is difficult to find reference for future correspondence. Everything should be exact in detail. If you are sending quotations, then be exact in rates, quality and quantity while quoting. Later excuses will render you unreliable, and you will lose goodwill of business community.

3.Complete in Contents:

A business latter must be complete in contents. Terms and conditions of supply, delivery, packing etc. must be spelled out in detail. Nothing should be left to the imagination of the addressee.

4.Courteous in Tone:

The letter must have a polite and courteous tone. Even if the customer is bitter in expression and wrong in allegations, you have to send a mild reply though a firm one. Never annoy with words any customer whosoever he may be. Courtesy and civility pave a smooth way to progress in business.

5.Brief in Expression:

Traders and men of commerce are extremely busy. They have no time to read largely-worded letters. Brevity should, therefore, be the rule in such letters. Say clearly in a small number of words what you have to convey. But this brevity should not be at the cost of clarity or facts that you want to quote.

6.Simple and Lucid in Style:

The style of such letters should be highly simple and lucid. It should have no vagueness. A straight forward and direct approach is better than beating about the bush in round-about language. The whole thing should be easily comprehensible.

7.Prompt in Reply:

A letter in reply should be written very promptly. If not the same day, a reply must be dispatched the next morning. Inordinate delay may change business conditions and may cause you untold damage. This creates an impression of uncertainty and unreliability about your company.

8.Correct in Spellings and Punctuation:

While typing letters the steno must be clear about correctness of spellings all business managers dealing with correspondence should learn correct spellings. Even a single wrong spelling creates a very poor impression upon the reader and erodes the image of efficiency of your firm. For this all those who dictate or write business letters must remember correct spellings. A handy list of words, which are often miss-spelt, is useful. Correct punctuation marks are also an essential feature of a letter. Wrong punctuation marks or punctuation marks wrongly placed may change the meaning of sentence and may thus cause loss or misunderstanding.

9.Divided in Paragraphs:

All the mater I in a letter may not be placed in one paragraph. Each point may be conveyed in a separate paragraph. Thus, we see that a good business letter should be clear in language, definite about purpose, complete in contents, courteous in tone, brief in expression, simple in style, prompt in reply, correct in spellings and punctuation, and placed in paragraphs.

THE ART OF WRITING BUSINESS LETTERS:

The modern system of transport and communication has brought about quite a revolution in the world of commerce and trade. The enlargement of market and quick transportation of goods have given an unthinkable fillip to trade and business. The postal department has done creditable service in this regard;


Letter-writing is an art, more so is business letter writing. Modern trade and commerce are so widely and vastly spread over space that it is quite impossible for the managements to go personally or send representatives to various customers or agencies for furtherance of business interests. Hence, much of business these days is carried through business correspondence. Some business-houses receive so many letters daily that they have employed a number of stenographers to get dictation and to type replies so that there occurs no delay in various transactions. A man of commerce has to write various type of letters. He has to send orders for purchase, complaints regarding receipt of wrong or damaged goods or about non-compliance of certain conditions, for realizing debts, for getting loans from banks or for sending advertisements. In short, there can be as many kinds of letters as there are business interests. Brevity, simplicity and correctness should distinguish a business letter. It should be courteous in tone. It should never be dry or curt in spite of provocation. A customer may use unbecoming language, a trader never. Even if you have to refuse a concession, say a mild no. Always give hope of extending best service and of accommodation in future.

The whole personality of the writer, nay of the business concern is projected in a letter. The paper, the latter-head, the ink and even the envelop that carries the latter, matter. The latter should be neat, clear and definite with full address, date and reference. One must be very careful while writing a business latter because a business latter is a written document and can be produced in court if a case of any dispute arises between the parties. One should, therefore, be very definite and clear about the terms and conditions when dictating a latter. It is better to note down hints first and plan what to write before dictating to the stenographer. While writing a reply, you should always keep the letter of the addressee before you. The tone of a business letter is formal. A business letter is not a personal letter and there is not that intimacy which marks all personal correspondence. However, while keeping a formal tone, you are to show business closeness or special treatment you are giving to addressee. Since letter-writing is a great art, one must have mastery over the language in which one usually writes such letters.

One should acquaint oneself fully with all the business and technical terms and phraseology which one has to draw upon while writing business letters.