It is known that many transactions in internations trade are handled not by direct negotiation between buyers and seller but by agencies ,usually in the country of the buyer.It is more convenient and economical for a foreign trade company to do their buying and selling business through agencies abroad,because a foreign agent is well familiar with the market conditions in which he will operate,and he knows that goods and what prices are best suited to his area.

There are mainly two types of agents:general agent and sole or exclusive agent.

A general agent may be a firm or a person who acts under instructions from his principal to sell or  buy on the best terms obtainable.

Sellers may send a quotation to buyers in response to their enquiries.A quotation which includes all the necessary information requested for in the enquiry is a promise to supply goods on the term stated.it is taken as a non-firm offer. The prospective buyer is under no obligation to buy the goods for whice a quotation is requested,while the sellers is not bound to sell what has been previously quoted if he later decides not to do. A quotation is not legally binding though it contains some qualifying words which function as firm offer do.An efficient quotation includes the following parts:

1.  Anexpressionof thanks for the inquiry,if there is previous inquiry.

2.  Name of goods,quality quantity and spcifications.

3.  Details of prices,discounts and terms of payment.

4.  Clear indication of what the prices cover, e.g.packing, transpont,agents’ commission,insurance.

5.  An undertaking as to packing and date of delivery.

6.  Anexpressionof hope that the quotation will be accepted.

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