UNIT 27 BUSINESS CORRESPONDENCE

Structure

27.0 Objectives
27.1 Introduction
27.2 Basic Principles of Correspondence
27.3 Planning the Letter
27.4 Kinds of Business Letters
27.4.1 Letters of Enquiries, Quotations, Orders and Acceptance
27.4.2 Letters of Claims, Complaints and Adjustments
27.4.3 Dunning Letters
27.4.4 Agency Letters
27.4.5 Status Enquiries
27.4.6 Banking Letters
27.5 Let Us Sum Up
27.6 Key Words

27.0 OBJECTIVES

After studying this unit, you should be able to:

know the essentials and style of a business letter

plan a business letter
write different kinds of business letters effectively

27.1 INTRODUCTION

A modem businessman is required to write letters every now and then. For instance
letters are written for purchase and sale of goods, collection of debts, payment of
dues, making enquiries, placing orders, despatch of goods, appointment of agent,
distributors, etc. Larger the business, greater is the volume of correspondence. In
this unit you will study different kinds of business letters. You will also study some
of the basic and essential principles of business correspondence.

27.2 BASIC PRINCIPLES OF CORRESPONDENCE

To convey any message, effectively, business letter writing needs the application of
certain communication principles. They provideguidelines for the content and style
of presentation. A business letter should be written keeping in view the following
basic principles of business correspondence.

1. Clarity: Clarity of content is the most essential requirement of a letter.

Difficult words requiring the use of dictionary, flowery expression and poetic
language should be always avoided. The words used should not be vague or
ambiguous. The letter must convey to the recipient the exact meaning which
the writer wants to communicate.

2. Coherence: The clarity of a letter, to a great extent, depends upon its unity or
coherence. Therefore, a letter should be written in a logical manner and
Business Communication: reflect consistency of thought. One thought should follow another in a
Writing Skills-1 proper sequence. An orderly arrangement of the subject is necessary and
should be expressed in appropriate words.

3. Brevity: We now move to another essential aspect of business letters,

namely-brevity i.e. do not write more words if you can make your message
clear in a few words. You have to keep in mind that most personnel in any
organisation have a lot of correspondence to deal with, both from outside the
office and within the office. These people do not hnve the time to go through
long winding letters. Therefore, follow two simple rules--come straight to
the point and make your message very clear by using simple language. As
you will notice in the letter below, Mr. Shamla failed to do that and the result
is before you:-

Gentlemen,

1) We are carrying you on our mailing list as follows:

Pandit Brothers,
C-12, Cannaught Circus,
New Delhi - 110 001

2) Will you please return this notice with any corrections shown thereon
which should be made?
3) If the above address is correct, we would appreciate advice from you
to that effect so that our records are complete.

Yours truly,

(M. Sharma)

As you notice, Mr. Sharma has used a lot of space and unnecessary cliches to say
something which could have been said more effectively in a few simple words as
"We would appreciate having your correct mailing address"

Let's go back and look more closely at the letter. Read sentences 2 and 3 of the letter.
Does the 3'* sentences seek any new information than which sought in sentence 2?
What makes this letter longwinded is redundancy-that is an unnecessary repetition
of ideas or words. For example look at expressions like, 'repeat back', 'round in
shape' 'the reason is due to', etc.

The other reason for long, involved messages is circumlocution. Circumlocution

comes about when you choose the long word to the short, and use a phrase when a
single word will do, e.g. due to the fact that, made the announcement, at an early
date in place of because, announced and soon, respectively.

Look at some of expressions commonly used which could easily be substituted by

one or two words as shown in the right column.

in regard tolin reference to regarding or referring to

due to the fact or for the reason that because
in the majority of instances mostly
in view of the above therefore
Hoping to hear from you, I remain (do not use this expression)
with the exception of except
at all times always
would like to state, beg to state (do not use these expressions)
 Business
Courtesy and Friendliness: The tone of the business letter should always be Correspondence
courteous and polite. While drafting a business letter bluntness should never
be regarded as a sign of strength. On the contrary, only a poor image is
bound to result from an offensive attitude conveyed through the letter. In
other words, a business letter should reflect friendliness and courtesy. Even
in the case of difference of opinion or complaints, it is desirable that
courteous language and expression should be used. Words like 'please' ,

always bring a positive response. However such words ought to be used

without sacrificing one's self-respect and dignity.

Simplicity: A letter business should be clear, written in simple language

with a natural flow of words. The letter should not contain quotations, or
words which are pedantic (bookish) and which sound artificial. Effort should
be made to give a personal touch to the message which is intended to be
communicated.

Correctness: A business letter should be grammatically correct and factually

accurate. Incorrect information and inaccurate facts conveyed through a
letter are bound to make the position of the writer vulnerable. The addressee
may stop further dealings with the writer of the letter. In letters of enquiry,
orders, complaints, references, etc. information given should always be
correct and exact. If, for some reason, it is not possible to communicate the
necessary information, the reason may be clearly stated in a polite language.

Completeness: A business letter should be complete in all respects. It must

not leave out any fact or information that the addressee needs to respond to
the letter. An enquiry which does not contain necessary particulars, or
explanation which is partial is never appreciated. An incomplete 'letter may
compel the receiver to make further correspondence on the subject involving
waste of time or prompt himher to act according to hisher own judgement
which may lead to disputes.

Originality: Originality of form, expression and style are often necessary to

make business letters more appealing, particularly for sales promotion, and
on special occasion, such as the introduction of a new product. Indeed, with
changing times, old and sterotyped forms and expressions have been replaced
by more natural forms and expression.

Attractiveness: A neat and tidy letter, clearly typed or written on a

reasonable good paper with proper par,&phing makes a letter attractive to
the reader. Any overwriting, rubbing or cutting of expressions, improper
spacing between paragraphs, etc. does not create a favourable impression. So
the appearance of a business letter should be impressive, neat and tidy to the
maximum extent possible.

Effectiveness: The ultimate goal of a business letter is the desired response

in a positive manner within a reasonable time. Obviously, delayed or
negative response shows the ineffectiveness of the letter. Time and
stationery used in writing such letters involve wasteful expenditure. Thus,
'
effectiveness may be regarded as the most essential feature for a business
letter.

Avoidance of obsolete language: Over the years many stock words and
phrases have been developed which are in common use in commercial
correspondence. However, the inclusion of such words and phrases reduces
the originality of a letter and make it pedantic and pompous. Wherever
,possible, a natural style should be used to convey the message. This is
possible if the writer has a command over the language and vocabulary.
Business Communication:
Writing Skills-1 Here are some typical openingsand endings of letters which are still used. We call
them jargon or cliches i.e. expression which are supposed to be reserved for business
writing. BUT remember, we no longer believe that there is any fixed or separate
language for business correspondence. Look at these expressions and the substitutes
that we have given for them.

Instead of saying Say

Replying to your letter Thank you for your letter

The writer wishes to acknowledge
We are in receipt of your letter We have received your letter
We beg to inform you
We respectfully inform you' We are writing to inform you
The favour of an early reply will oblige I shall be glad to hear from you
soon
Assuring you of our best attention
Thanking you in anticipation
We beg to state Omit these expressions
We beg to acknowledge

Given below is i lettlr full of cliches and jargon. Can you rewr;.te it? ,
, . j .

My dear Sir,

Yours of the 1st received and contents duly noted. In reply would state that
as per agreement the undersigned agrees to perform indicated services in accordance
with prior instructions.

-Thanking you for past favours, I remain,

Yours truly,

12. Use 04 active voice in construction: Wherever possible, active voice should
be used in a business letter. passive voice shows hfi indifferent approach
which is likely to be misunderstood as lack of interest. The following letter
will indicate the stilted style of a letter in passive voice.

Dear Sir,

You are thanked for accepting our invitation to visit the factory on the 1oLh.
On your arrival at the gate, you will be met by our Deputy manager and you will be
escorted to the premises. You will then be taken on a tour of the factory and will be
shown the various departments.

Some years back this might have been considered a good letter because it is so
impersonal but today it will be rejected for the same reason. People today have
realised that even when letters are written to business houses or institutions, they are
written and read by people. It is people who run these organisations and that is the
reason that letters have to adopt a warm, personal tone. "You are thanked" and "You
will be met", etc. are so cold and stiff. Instead, if the lettei said, "Thank you for
accepting our invitation" a'nd "Our Deputy manger will meet you on your arrival at
the gate" it would sound friendly and warm. Even in the present time, many business
correspondents advocate the use of the passive voice. So you have to guard against
that. The excessive use of the passive has other disadvantages besides sounding stiff
rild cold. It leads to a lot of verbiage and makes the language awkward at times. Business
Here are two examples, first in passive voice and then in the active- Correspondence
I .

1. Passive. The exact size and colour desired by you has to'be known to lis in
order that your order may be received by you by 22"dOctober. ,
2. Active. We must know the exact size and colour you,desire so that we can
supply the goods by 22ndOct. , .
. '

3. Passive. Consideration is being given to this matter by our Sales .

Department.
4. Active. Our Sales Department is considering the matter.

Do you not agree that you use less words in Active voice and the message is
clearer?

Another disadvantage of the passive is that it takes away force and vigour out of'the
language e.g.

It has been decided by the Board of Directors that latecomers be penalised

becomes much more forceful when you say:-
The Board of Directors has decided to penalise the latecomers.
To take another example, your customer will believe you sooner if you say:-
We assure you that we will replace any piece which is defective rather than if you
say:-
You are assured that any piece which is found defective will be replaced.
One other way of being forceful and direct is to avoid, as far as possible, the use of
the introductory "it" i.e. instead of saying "It is believed", "It is seen", "It has been
noticed", say, "We believe", "We notice", etc.

You have seen some disadvantages of the passive but there are some cases where the
passive can prove to be extremely useful especially when the action is important but
the doer of the action is not--especially in business reports the passive is essential.
For example, "The report will be submitted by the 20" of June" rather than "We will
submit the report by 20" June" because the report is the focus of attention and gains
importance by the use of the passive.

Passive can also be gainfully used - or rather - we can also use the passive gainfully
when there is need to be a bit vague. When one does not wish to blame someone
directly or does not wish to take the blame oneselc passive can d,othe trick. For
instance, as the Marketing Manager you may say,

"The demand for this product has been overestimated resulting in a surplus"
rather than
"I had overestimated the demand and that resulted in a surplus"
This technique can be effectively applied in business correspondence when you wish
to point out someone's fault while retaining goodwill for the Company. Instead of
writing this to a customer:-

"[Link] was spoiled because you exposed it to light"

You may use the passive and not name anyone:
"The film was spoiled because it had been exposed to light"
You are now ready for another rule:

Use the [Link] needed or to break the monotony of your sentences, but do
not make a habit of using it.

Check Your Progress 1

1. Compare letters-E and F and try to point out the words or expressions that
make the tone of the two letters different. Why is the second one a better
letter?
Business Communication:
Writing Skills-I

a Dear Sir,

It seems that you did not receive the cheque sent by us on time. We are very
prompt in our payments and it must be due to the poor postal services. However, we
are sending you another cheque. Any inconvenience caused is regretted.

Yours faithfully,

Dear Sir,

We are extremely sorry to learn that you did not receive your cheque in time.
We are sending you another cheque. Despite our best efforts, mistakes do occur. We
assure you that we will not give you another opportunity to complain. We are sorry
for all the inconvenience caused to you.

Yours faithfully,

Check Your Progress 2

Change the following into active voice making the sentences more forceful:-

1. It is noticed that the sales volume has been increasing.

2. It is believed that this policy will be beneficial to our personnel.
3. Unsatisfactory results in our generating plant have been reduced through the
use of a new generator.
4. Present production methods are based on the belief that a large screen is
preferred by our customers.
5. The contract has a requirement that it be signed by you.

Check Your Progress 3

Given below are five examples, all in the active voice. Read them very carefully and
try to figure out where they belong - in a letter, in a report or elsewhere? It is true
that some of them are very forceful and direct- but think hard and decide - do we
need to be so forceful? When you have decided, then leave those which you feel
should be in the active voice and turn the others into passive.

1. The milk turned sour because you did not put it in the refiigerator.
2. The management has decided to increase the working hours.
3. We found that 75% of the men like the Rose shampoo. We also found that
the children find its smell unpleasant. We further discovered that 88% of the
women did not like the bottle.
4. We will deduct 10% fiom the total if you return the ticket 24 hours prior to
departure.
5. We want to warn you if you trespass, you will have to pay a fine.

27.3 PLANNING THE LETTER

A business letter should be planned before it is written. Planning of a letter is as

important as planning of any other activity. A properly planned letter is more
 ~usine'ss
effective and invites a positive response. A letter which is not planned may not
Correspondence
provide the information sought or may provide the information which is not asked
for. In both the cases the information has no effect. Three steps are to be taken to
plan a successful letter.
1. Write down your AIM: What is the purpose of this letter?
2. ASSEMBLE all the relevant information and documents: copies of previous
correspondence, reports, figures, etc.
3. ARR4NGE the points in order of importance. Decide which points are
irrelevant and can be left out. Make rough notes.
4. Write an OUTLINE in note form. Check it through considering these
questions:
Have you left any important points out?
Can the order of presentation be made clearer?
Have you included anything that is not relevant?
5. Write a FIRST DRAFT, leaving plenty of space for changes and revisions.
6. REVISE your first draft by considering these questions:
INFORMATION: Does it cover all the essential points?
Is the information RELEVANT, COI~WCTand COMPLETE?
ENGLISH: Is the grammar, spelling and punctuation correct?
STYLE: Does it look attractive?
Does it sound natural and sincere?
Is it CLEAR, CONCISE and COURTBOUS?
Will it give the reader the right impression?
Is it the kind of letter you would like to receive yourself?
7) Write, type or dictate your FINAL VERSION
8) Proof read your letter before sending it.
Though proof reading is not an essential part of writing a letter, it is a very
important precautionary aspect of business correspondence. A good letter
can be ruined by careless attitude towards grammatical and typing errors.
Thus, wrong spelling of names, incorrect numbers typed, and failure to
enclose specified items need to be corrected before a letter is signed. Proof-
reading is essential for correcting grammatical mistakes, errors of spelling
and typing errors. Indeed, proof reading is a double check on completeness.

Check Your Progress 4

1. Explain why each of the following expressions is redundant:

a. new innovations b. absolutely necessary c. very unique. d. consensus of
opinion e. enclosed you will find f. other alternative g. reasonable and fair
h. temporarily suspended.

2. The following statements have been taken from various memos, and reports
of Bakelite Hylem Ltd. Rewrite the statements, making them clearer and to
the point:-
a. In view of the foregoing facts and figures, it seems appropriate to suggest an
entirely new customer service policy.
b. Would it be possible, do you think, for you to engage the Nizam Hall for our
use as the meeting place of our task force on May 19?

c. It is the consensus of opinion of our personnel relations committee that work

stoppage would decrease impressively and substantially if the equipment
were kept in constant and complete-repair.

Check Your Progress 5

Try and reduce the number of words in the following statements:

 Business Communicarron:
1. We are making this analysis for the purpose of providing a basis for
Writing Skills-1
improving the sales picture.
2. I have your letter for September 14 before me and am happy to tell you that
we will be able to supply the uniforms you want in the colours and sizes you
have requested in your letter.
3. Please send the invitations out in the mail in plenty of time so that those who
are being invited will have sufficient advance notice in which to respond.
4. The regional managers held a meeting for the purpose of discussing the
distribution of sales territories in the various geographical areas.

27.4 KINDS OF BUSINESS LETTERS

There are various circumstances in which business correspondence becomes

necessary. Depending on the nature of circumstances business letters may be of
various kinds which may be classified into the following general types:
1. Letters of Enquiries, Quotations, Orders and Acceptance
2. Letters of Claims, Complaints and Adjustments
3. Agency letters .
4. Status Enquiries
5. Banking letters
The list is not exhaustive. Also there may be various types of letters under each head.
Let us now discuss the nature of these letters

27.4.1 Letters of Enquiries, Quotations, Orders and Acceptance

I
Letters of Enquiry: Letters of enquiries are generally addressed by prospective
buyers to possible suppliers of goods to seek information regarding availability of
goods and the terms and conditions of supply. A letter of enquiry may include a full
description of the goods required with specifications of the goods. Or, the letter may
be a request to the supplier to send the catalogue and price list of the goods traded by
the supplier.

Specimen of Letter requesting a Catalogue/Price list to be sent

R.K. Khanna &Sons,

143, Asaf Ali Road,
New Delhi - 110 002
January 22,1994
Messers Dhani Ram Seva Das
22, Abdul Rehman Street,
-
Bombay 400 003

Dear Sir,

We have seen your advertisement in the last issue of the monthly magazine
'Garments'. We shall be grateful if you could send us a copy of your latest catalogue
and price list of readymade garments for ladies and children. We are regular
exporters of garments to the Middle East and African countries, and expect to place
fairly substantial orders with you at regular intervals. We shall appreciate a quick
response from your side.

Yours faithfully,

Raj Kumar Khanna

Partner
 Business
Letter of Quotation: When an enquiry is received about goods from any prospective Correspondence
buyer, a letter of quotation has to be sent in reply. Business quotations should be
prepared giving complete information as to the nature and quality of the goods, the
time and mode of delivery, price per unit of weight or measurement, charges for
packing, transportation and other services, and terms of payment i.e. whether on cash
or credit or against acceptance.

Specimen letter

Dhani Ram & Seva Das

22, Abdul Rehman Steet,
Bombay 400 003

January 31,1992

Messers Raj Kumar Khanna & Sons

143, Asaf Ali Road,
New Delhi - 110 002

Dear Sirs,

With reference to your letterr dated January 22, 1989, we are pleased to
enclose a copy of our catalogue and a copy of quotations for your perusal and record.

You will find from the enclosed documents that our designs are new and
prices are very competitive. Service charges are also reasonably low.

We have received our fresh stock last week and, therefore, quality-w~setoo
we hope to give you the latest and most satisfying products.
J

Yours faithfully,

Dhani Ram Seva Das

Encl: Catalogue and quotations.

Specimen of Letter giving specific quotation

Dhani Ram Seva Das,

22, Abdul Rehman Street,
Bombay - 400 003

January 31,1992
Messers Raj Kumar Khanna,
143, Asaf Ali Road,
New Delhi - 110 002

Dear Sir,.

As per your letter dated January 22,1989, we are pleased to enclose the latest
copy of our catalogue and price list for your perusal and record.

Though our prices are fixed, 10% discount will be given on all quoted prices
if cash is paid on delivery of documents through the bank. A credit of 30 days is
allowed fiom the date of receipt of documents provided a bank guarantee is furnished
in advance. Cost of packing, transportation and insurance will be borne by us.
dusiness Commurtication: We hope you will find these quotations quite reasonable and place your order
Writing Skills-1
at the earliest.

Yours faithfully,

Dhani Ram Seva Das

Encl: Catalogue and Price List.

Letter Placing an Order

When a business firm places an order with a supplier, the letter provides detailed
particulars about the goods desired as well as the terms of purchase.

Specimen of Order

Ram Nath Bhola Shankar,

25, George Town,
Allahabad

April 10,1993.

Messers A.K. Das & Sons,

2, Colootola Street,
Calcutta 7000 073

Dear Sirs,

Thank you very much for your quotations for readymade garments received
here on April 8, 1992. We find the quality and prices satisfactory and are pleased to
place an order for the following item:

1. 100 pcs Baba suits of different colours for children

-
Item No. 27 of the Catalogue - @ Rs.401- each.
2. 200 pcs Ladies house coats.
3. - Item No.49 - Rs.1051- each.
Please despatch the goods by Railway Parcel and send the Railway Receipt
duly endorsed in our favour and drawn upon our bankers namely, Bank of
India, Allahabad, for the invoice value after deducting 3% cash discount.

Please treat the order as urgent as we have to meet outstanding demands.

Yours faithfully,

Ram Nath Bhola Shankar

Letter of acceptance of order

After the order has been received it should be acknowledged by the supplier with a
letter welcoming the customer and expressing pleasure in serving the order.
 Specimen letter Business
Correspondence
A.K. Das & Sons,
2, Colootola Street
-
Calcutta 700 073

20 April 1993

Messers Ram Nath Bhola Shankar,

25, George Town,
I Allahabad

Dear Sirs,

We acknowledge receipt of your letter dated 10" April 1993 and thank you
for your order for garments for ladies and children.

We have booked the order in accordance with your instructions and assure
you of its prompt execution, not later than 27" April, 1993.

We hope you will find our garments satisfactory and look forward to an
enduring connection with your firm.

. Yours faithhlly,

For A.K. Das & Sons

M.K. Das
Manager

Letter intimating supply of goods

It
I As and when an order is acknowledged and confirmed the supplier starts making
I arrangements for execution of the orders. When the goods have been despatched, a
letter is addressed to the buyer intimating him that the goods have been despatched.
The buyer is also informed about the mode of transport and the date by which the
goods are expected to reach the destination.

Specimen letter

A.K. Das & Sons

2, Colootola Street
Calcutta - 700 073

26 April 1993

Messers Ram Nath Bhola Shankar

25, George Town,
Allahabad

Dear Sirs,

We have despatched today by Railway Parcel:

100 Pcs. Baba Suits for Children @ Rs.40 each

200 Pcs. Ladies house coats @ Rs.105 each in accordance with your order dated 10
April 1993. The Railway Receipt duly endorsed in your favour and drawn upon
Business Communication: Bank of India, Allahabad, for the invoice value Rs.20, 370.00 (Rupees t w e r ~ ~ ~
Writing Skills-I
thousand three hundred seventy only) after deduction of 3% cash discount, is
enclosed. We await your remittance.

We are happy to welcome your patronage and hope that we shall continue to enjoy it
to our mutual advantage.

Yours faithfully,

for A.K. Das & Co.

M.K. Das
Manager

Encl: R/R,Invoice

27.4.2 Letters of Claims, Complaints and Adjustments

There may be occasions when discrepancies arise between the stipulations in the
order placed by the buyer and the actual manner or execution of the order by the
supplier. The quantity and quality of goods received may not conform to the goods
ordered, or the goods received may be short or damaged or in a defective condition,
or the terms and conditions of payment, delivery, etc. may have varied. Letters of
claims and complaints may have to be written by the buyers on such occasions.

A letter of complaint should be written in a polite language giving only bare facts
which should be substantiated by sufficient evidence. The letter should never start
with the assumption that the other party is a cheat. Complaints may arise due to some
unintentional acts and circumstances and benefit of doubt should be given unless
otherwise proved.

Letters of claims and adjustments are written to the suppliers of goods when there are
defects in the goods received. Such letters are also written to Railways, Roadways,
Postal, or Insurance Authorities when the goods are lost or damaged in transit.

When complaints are received, the suppliers should attend to them immediately and
speedy action should be taken to rectify the wrong, if any. If the complaint is not
justified, the reply must be given in a polite manner and without being offensive. All
letters of complaints, claims and adjustments must be clear and definite and should be
supported by relevant documents.

Specimen of Letter of Complaint regarding defective goods

Lucknow Potter House

32, Latosh Road,
Lucknow - U.P.
<

March 27,1993

The Khurja Potteries,

3, Main Road, -
Khurja (UP)

Dear Sirs,

We took delivery of the two parcels sent by you last week vide invoice
No.. ............ dated.. ............ On opening the parcels, we found that two Tea Sets
were broken possibly on account of bad packing. Kindly send us replacement or a
 Business
credit note for the same. The broken sets are lying with us and whenever your Corresponderice
representative visits us, he can inspect them and decide on their disposal.

We shall appreciate early action on the matter.

Yours faithfully,

for Lucknow Poettery House

Shahabuddh
Partner

Reply to the above letter

The Khurja Potteries,

3, Main Road,
Khurja (U.P.)

April 10, 1992

The Lucknow Pottery House

32, Latosh Road,
Lucknow (U.P.)

Dear Sirs,

We regret to note from your letter dated March 27, 1993, that two tea sets of
the last consignment sent to you were found broken. We are sending a fresh
consignment to replace the two sets. We hope that you would find them in order.

We regret the inconvenience caused to you in this regard and assure you that
6
every effort will be made to prevent such deficiencies in future.
1 We hope to receive further orders in the near future.

Yours faithfully,

For Khurja Potteries

Nuruddin
Partner

Letter of Complaint to the Railways

12-A, Asaf Ali Road,

New Delhi 110 002

July 13,1993

I The Superintendent,
, Railway Parcel Section,
I New Delhi Station,
New Delhi

Dear Sir,

This is to inform you that on June 18,1993, we consigned one parcel

addressed to Mr. B.D. Gupta, Mall Road, Meerut, vide Railway Receipt No. 786
Business Communication: dated 18.6.1992 from New Delhi Station issued by that office. The Railwr y Receipt
Writing Skills-1 was duly sent to our customer.

Yesterday, we received a complaint from Mr. B.D. Gupta, that the parcel had
not yet reached its destination. We shall be grateful if you kindly make enquiries at
your end and let us know the result.

Immediate attention in this matter will be highly appreciated.

Yours faithfully,

Hukum Chand Gupta

27.4.3 Dunning Letters

These letters are usually written by suppliers when the buyer does not make payment
after repeated requests and reminders. The tone of the dunning letters should be
courteous but firm. Threats of legal action should be avoided as far as possible and
should be used only as a last resort. The usual procedure for collection of dues is to
write at least three letters, the first as a mild reminder, and the next two more firm
and persistent. if these letters do not result in payment, the fourth letter should be a
firm demand for payment within a definite period with hint of legal action in case of
default. The final letter should notify the legal steps taken.

MARCONI ELECTRICALS LTD.

123, Azad Road, Howrah

7Ib February 1993

Messers Continental Traders,

Central market, Etah

Dear Sirs,

We regret to point out that we have written to you repeatedly, on 10" and 2:''
January and again on 4' February, calling your attention to our unsettled account of
Rs.2,776/- against supply of electrical goods as per your order But you have not
responded to any of our letters.

In this circumstances, we are compelled to advise you with great reluctance

that unless our account is settled by 25' February we shall place the matter in the
hands of our solicitor.

We trust that you will make this action unnecessary by settling our account
immediately.

Yours faithfully,

for Marconi Electricals Ltd.

S.C. Soha
General Manager
 Howrah Business
Correspondence
26thFebruary 1993

Dear Sirs,

Wc have to inform you that having received no reply to our letter of 15'
February and three previous letters asking for settlement of our accounts, we have
this day placed the matter in the hands of our solicitor from whom you will hear in
1 due course.
I
Yours faithfully

27.4.4. Agency Letters

Business firms which do not find it suitable or convenient to open branches decide to
establish agency relationships with other business firms in different towns and cities.
On the one hand, it helps to expand business, and on the other, costs of operation and
maintenance of branches are saved.

I
Establishment of an agency usually takes a definite course. A business house, on its
own may apply to a manufacturer or supplier for an agency explaining its financial
resources, business connections, area and scope of operations, guarantee of business,
rate of commission including del credere commission, requirement of sole agency or
otherwise, and finally the business references.

The objective should be to provide the relevant information so as to help a positive

decision by the prospective principle.

If the manufacturer or supplier is convinced about the particulars of the applicant,

enquiries will be made regarding the financial position and business dealings of the
I
I
applicant from the referees. On receipt of satisfactory replies from the referees, the
draA agreement or form is sent for completion and signature, and agency is given to
that firm. On the other hand, if the manufacturer or supplier is not convinced, a letter
of regret is sent.

Request for Agency

145, Abdul Rehman Street,

Bombay

January 2,1994.

The Fine Brass Goods Manufacturing Co.,

2, Thathera Street,
Moradabad (U.P.)

Dear Sirs,

Sub: Request for Agency

In response to your advertisement for appointment of agents for your

products in Bombay, we are pleaskd to offer our services in this regard.

Our firm has been doing business in Moradabadi utensils for more than thirty
years. We are the premier suppliers of utensils in Bombay and feel confident that we
shall be able to push the sale of your products in this area. For the present w- .are
you a minimum business of Rs.50,000/- per month.
Business Communicution:
Writing Skills-I We charge 5% commission and 2% del credere commission on gross sales
and guarantee all payments within a period of 90 days from the date of receipt of
consignment. All other expenses will be reimbursed by the principal. Our bankers
are Bank of India, Crawford Market Branch, Bombay, who can give a guarantee on
our behalf to the extent of Rs.3 lakhs.

References may be made to Messers Zakaria Shahid & Co. Thathera Street,
Moradabad, and Messers Abdullah Brothers, Faizan Nagar, Moradabad, regarding the
financial integnty and standing of our firm. We shall do our best to promote your
business in the Bombay market and hope that you will find it possible to entrust the
representation of your firm to us.

Yours faithfully,

for New Deal Utensil Suppliers

Ahmad Bartanwala
Partner

Enquiry about Financial Status of a Prospective Agent

2, Thathera Street,
Moradabad (U.P.)

January 15,1994.

Messers Abdullah Brothers,

Faizan Nagar,
Moradabad (U.P.)

Dear Sirs,

Messers New Deal Utensil Suppliers, Bombay, has requested us to appoint

them as our agents and has assured us a business of Rs.50,000/- per month against
three months credit. They have given your name as referee to vouch for their
integrity in business dealings.

We shall be extremely grateful if you can give us your experience of dealing

with them especially about their promptness in payment. We assure you that any
information given by you shall be kept in strict confidence and will not be conveyed
to any person under any circumstances.

With thanks,

Yours faithfully,

for Fine Brass Goods Manufacturing Co.

R.K. Khanna
Partner
Favourable Reply to the Enquiry Business
Correspondence

Faizan Nagar
Moradabad (U.P.)

January 25,1994

The Fine Brass Goods Manufacturing Co.,

2, Thathera Street
Moradabad (U.P.)

Dear Sirs,

Please refer to your letter dated January 15,1994, regarding the business
dealings and financial status of Messers New Deal Utensil Suppliers, Bombay.

We wish to inform you that we have been dealing with that firm for the last
ten years. During this period our volume of business with them has multiplied
manifold. Moreover, they have been good paymasters all through this time and have
never given any reason for complaint. We, therefore, highly recommend their name
and hope that you will find them a valued agent in course of time.

Yours faithfully,

For Abdullah Brothers

S.M. Abdullah .
Partner

Appointment as Agent

2, Thathera Street,
Moradabad, (U.P.)

February 1,1994.

The New Deal Utensil Suppliers,

145, Abdul Rehman Street
-
Bombay 400 001

Dear Sirs,

Sub: Appointment as Agents

We are glad to inform you that we would like to appoint you as our Sole
Agents for the Bombay region, as per your request dated January 2, 1994. Your
name has been highly recommended and we hope that we shall also establish good
business relations in the course of time.

To begin with we quote below the prices of various novelty items which have
been recently manufactured by us.

1. Silver Candlesticks Small Size @ Rs,1001- per piece.

2. Brass Flower Vas Medium Size @ Rs.2001- per piece.
 Business Communication: You will be allowed 5% commission on sales plus 2% del credere
I
Writing Skills-1 commission as per our terms.
I
Please fill the enclosed Form of Agency and send it by return post.

We are sending, by separate post, our latest catalogue and price list of
products. We shall appreciate it if the sale of the above mentioned items is pushed
through. Also enclosed will be some advertising material which will help you in
achieving this end. Kindly acknowledge receipt of all the papers.

With best regards,

Yours faithfully,

for The Fine Brass Goods

Manufacturing Co.
RK. Khanna
Partner

Unfavourable reply to an Enquiry about a prospective Agent

Faizan Nagar
Moradabad (U.P.)

January 25,1994
*

The Fine Brass Goods Maqufacturing Cod,

2, Thathera Street,
Moradabad (UP:)

Dear Sirs,

Regarding your enquiry about the New Deal Utensil Suppliers, Bombay, vide
your letter dated Januarly 15, 1994, we wish to inform you that we have been dealing
with this firm for the last three years and our experience is not very good.
Unfortunately, they always offer one or the other excuse to delay payment. We
offered them many concessions and expected that they would increase the business in
due course of time but instead, the business has gone down. Rather, we are on the
look out for some other suitable agents.

Please note this information is being conveyed to you in strict confidence and
should be kept extremely confidential.

Yours faithhlly,

for Abdullah Brothers

S.M. Abdullah
Partner

27.4.5. Status Enquiries

Enquiries about the credibility, financial standing and dealings of business firms,
customers and clients are quite often made. For this purpose confidential letters are
sent either to known referees or to other business houses and institutions which may
 Business //
have dealings with the firms. It is expected that all these letters as well as replies to
Correspondence
the same are written in good faith and utmost care is taken to keep the information
confidential. Under no circumstances element of bias or malice should be apparent
from these letters. No exaggeration should be made while conveying a favourable
opinion. Where an unfavourable reply is given, it should be written in polite
language. If you do not wish to convey an unfavourable opinion, suitable reasons
should be given while sending a noncommittal reply. It should always be
remembered that similar enquiries may also be made about the firms' own dealings
l
and you would not like others to give a biased opinion. The objective should be to
I give a straight forward opinion about other firms without in any way spoiling ones
own image and business relations.

Letter requesting a reference

5, Bhagirath Place,
Chandni Chowk,
Delhi - 110 006

February 10,1994

The Speedy Fans Co.,

Main Bazar
Hapur

Dear Sirs, , -+

Thank you very much for your order dated February 2, 1994, for 10 pieces of
Khaitan Table Fans - A quality -- on credit for two months.

As you are dealing with us for the first time, we shall be grateful if you could
1 furnish us either a bank guarantee or a Delhi reference known to us as is the usual
practice. In the meantime, we shall, however, give our best attention to execute your
I order.

Yours faithfully,

for The Fast Fan Dealers

M.K. Das
Partner

1
!
Reply to the above

Main Bazar
Hapur

February 20,1994
The Fast Fan Dealers,
5, Bhagirath Place,
Chandni Chowk
Delhi- 110 006
t
i Dear Sirs,
I
I
Thank you very much for your letter of February 10,1994.
i
We are glad to give below the name and address of the Delhi firm where you
can make enquiries about our business dealings:
Business Co~munication: M~~~~~~ R.K. ~ h ~ ~ ~ ~ ,
Writing Skills-1 343, Sardar Bazar,
Delhi - 110 006

If you are satisfied, please arrange to execute our order at the earliest as the
summer season is approaching and we would urgently need these fans.

Yours faithfully,

for The Speedy Fans Co.

Ram Dulare
Partner

Request for opinion

5, Bhagirath Place,
Chandni Chowk
Delhi - 110 006
February 28,1994

Messers R.K. Khanna

343, Sadar Bazar
Delhi - 110 006

Dear Sirs,

The Speedy Fans Co., Hapur, has given your name aB referee for enquiry
about their business dealings. We shall be glad if you could furnish us information
about their credit worthiness and other business operations. It will help us in making
up our mind to enter into business relations with them. Please rest assured that the
information supplied by you will be treated as strictly confidential and complete
secrecy will be maintained.

Assuring you of similar service from our side in future.

Yours faithfully,

for Fast Fan Dealers

M.K. Das
Partner

Favourable Reply
343, Sadar Bazar
Delhi - 100 006
March 8,1994
The Fast Fan Dealers,
5, Bhagirath Place,
Chandni Chowk,
Delhi - 110 006

Dear Sirs,

We acknowledge receipt of your letter dated February 28,1994 about the

status of Speedy Fans Co., Hapur.
 Business
In this regard, we would like to inform you that we have been doing business 6orrespondence
with them for the last five years. They have always been prompt in making
payments. They have also taken extra care to promote our goods, as a result of which
our sales in that area has increased considerably. As they have good warehousing
facility available at their disposal, even large orders are handled efficiently.

We trust this information will help you in determining their business

standing.

Yours faithfully,

for R.K. Khanna & Co.

[Link]
Partner

Unfavourable Reply

343, Sadar Bazar,

-
Delhi 100 006
March 8,1994

The Fast Fan Dealers,

5, Bhagirarth Place,
Chandni Chowk,
Delhi - 110 006

Gentlemen,

With reference to your letter dated February 28, 1994, we regret to inform
you that though Speedy Fans Co., Hapur, is an old business firm, it has not been able
to maintain its reputation. We have been doing business with them for the last three
years and have experienced irregularity in their payment schedule quite often. Our
sales in that area has not shown any progress during this period.

We trust that you would keep this information strictly confidential.

Yours faithfully,

For R.K. Khanna & Co.,

[Link]
Partner

An Indifferent Reply

- 343, Sadar Bazar

-
Delhi 110 006
March 8,1994
The First Fan Dealers,
5, Bhagirath Place,
Chandni Chowk,
Delhi - 110 006

Dear Sir,
 --

Business Cornmuhication: In reply to your-letterdated February 28, 1994, we are to inform you that our
Writing Skills-1
dealings with Speedy Fans Co., Hapur, have been strictly on cash basis and,
therefore, we are not in a position to give any opinion on their credit worthiness.

Yours f&"lfully,

For R.K. Khanna & Co.,

[Link]
Partner

27.4.6 Banking Letters

Customer-Bank relationship depends on mutual trust and confidence. Besides

operating various types of deposit and loan accounts, the banks offer many services
to their customers and charge small amounts, for services rendered to the customers.
These may include collection of bills, dividend warrants, etc. issuing drafts, letters of
credit making tax payments, safe custody of valuables and so on. Customers are
expected to write to the Bank for specific services or leave standing instructions for
services to be valid till further information. Customers are also expected to honour
their commitments to their banks,
Letters written to banks should be brief and exact.
Unnecessary details and superfluous information should be avoided. Usually the
following types of letters are written by customers:

1) Issue of letters of Credit

2) Letters for collection of Cheques
3) Letters for Issue of Drafts
4 Lettgxs giving standing instruction4
5) Letters for overdrawn accounts
6) Letters advising payment of bills.

Request to Bank to issue Letter of Credit

D.K. Dutta & Company
20, Fraser Road
Patna
16" May 1993

The Manager
Metropolitan bank
Patna Main Bfanch
Patna
Dear Sir,
I intend to undertake a business tour shortly in Bombay and nearby industrial
areas to explore new markets for the products handled by us. I shall be grateful if
you could issue circular Letters of Credit to your branches in Bombay/Maharashtra in
my favour, for an amount not exceeding Rs.20,000 (Rupees Twenty Thousand only),
to remain valid for two months from the date of issue.
You may debit this amount together with your usual charges to our Current
Account with you.

Yours faithfully,

S. Dutta
Manager
 Business
Letter asking for credit facility Correspondence

52, Chandni Chowk,

-
Delhi 110 006

April, 1993

The Manager
Grindlays Bank
Chandni Chowk
Delhi - 110 006

Dear Sir,

We wish to infonn you that we are to import Industrial Machinery fiom

Messers Kesser Industreile, 2 Ludwig Strasse, Frankfurt, West Germany. The copies
of Import License and Foreign Exchange Permit issued by the Reserve Bank of India
in our favour, are enclosed for your perusal and record.

We request you to kindly issue a Letter of Credit in our favour for an amount
of U.S.$ 10,0001- (Ten Thousand US Dollars only) and intimate your Agents in
Frankfurt, under advice to us. On receipt of your confirmation, we shall duly inform
our suppliers in West Germany.

Yours faithfully,

for Agarwal Machinery Co,,

D.N. Agarwal
Partner

Encl: 1) Import License

2) Foreign Exchange Permit

Letter for delay in collection of cheques

203, Kushal bazar,

Nehru Place
-
New Delhi 110 019

May 24,1993

The Manager,
Bank of India
Nehru Place
-
New Delhi 110 019

Dear Sir,

We deposited the following two,cheques in your Bank on May 9,1993, to be

credited to our Current Account No. 0015 00 1700 CP after collection.

1. Cheque No. 345670 dated 2.3.1993 drawn on State Bank of India, New
Delhi, for Rs.5,000/-
2. Cheque No. 5431798 dated 5.4.1993 drawn on New Bank of India, New
Delhi, for Rs.6,900/-
Business Communication Going through the statement received from you, we find that these cheques
Writing Skills-I
have not yet been credited. We shall be grateful if you could look into the matter and
do the needful as soon as possible.

Yours faithfully,

for Wajidson [Link].

K. Shankaran
Chief Accounts Officer

Letter countermanding Payment

246, Sadar Bazar
Delhi - 110 006

June 7.1993

The Manager
United Commercial bank
Sadar Bazar
-
Delhi 110 006

Dear Sir,

We have issued a cheque No. 0786543 dated June 2, 1993, in the name of
Messers Ram Pershad & Co., Karol Bagh, New Delhi, for Rs.3,000/- only. We have
been informed by the party that the above mentioned cheque has been lost. Please
stop payment of the cheque and inform us if it is presented for collection.

Yours faithfully,

Badar Alam
Savings Bank
Account No.05984

Letter for Issue of Demand Draft

749, Bhagirath Place
Chandni Chowk
Delhi - 110 006
June 8,1992

The Manager
Allahabad Bank
Chandni Chowk
-
Delhi 110 006

Dear Sir,

Kindly issue a Demand Draft in favour of Messers Rati Ram & Co., Kanyur for
Rs.2,700/- (Rupees two thousand and seven hundred only) and debit the amount with
your charges to our Account v, ith you,

Yours faithfully,

for Radhey Mohan & Co.

Mohan La1
Partner
 Business
Standing Instruction to Bank Correspondence
Telstar Company Pvt. Ltd.
209, Navroj Bhawan
New Delhi - 110 018
Dated : 2othFebruary 1994

The Manager,
Punjab National Bank
Vikaspuri
New Delhi - 110 018

Dear Sir,
Sub: Standing Instruction
Please credit the amount of monthly pension to the Savings Accounts of the
following retired employees of our Company as per details given below.

Savings [Link] Amount of Pension

1. Sh. Hari prasad Bansal 7523
2. Sh. Deokishandan Pathak 8133

The respective amounts may be credited to the Savings Accounts on the 1st of
every month beginning March 1994 until further instruction, and the same debited to
our Current Account.
Yours faithfully,

for Telstar [Link].

N.R. Bisht
Manager

Letter for collection of Bill of Exchange

Jagdish Narain Sumer Chand,
514, Raghubir Nagar,
Bharat Bhawan
New Delhi - 110 018
The Manager,
Dena Bank,
Hari Nagar Branch,
New Delhi - 110 018
Dear Sirs,
Enclosed please find a 90 days Bill of Exchange dated 10' December 1993
for Rs.20,00/- drawn in our favour by MIS. Sareen & Sons and accepted by MIS.
Karan Bros., D-47 Malviya Nagar, New Delhi - 110 017, which may be collected on
maturity and the proceeds credited to our Current Account No. C/4072 1 less usual
collection charges.

Yours faithfully,

For Jagdish Narain & Sumer Chand

S.K. Sahai
Partner
Encl: Bill of Exchange
 b
Business Communication:
Writing Skills-I Letter for Overdrawn Account

Eureka Paper Mills Ltd.

A-24,Tilak Park
Nagarpur .

Dated: 14'~March, 1994

The Manager
Central Bank of India,
Shivaji Nagar
NAGPUR

Dear Sirs,

I am writing to inform you that we have today issued cheques amounting to

Rs.54,610 (Rupees Fifty Four Thousand Six Hundred Ten only) in favour of parties
against our Current Account No. CPl6711 with your Bank. Although the balance in
our account may not fully cover the amount of these cheques. I would request you to
honour the cheques as a temporary accommodation in view of our long association
with your Bank.

The necessity of overdrawing our account has arisen as payments due from &
:
some parties on account of contracts executed by us have not been received on time.
This has resulted in a temporary shortage of cash required to meet our commitments
to some suppliers. However, we expect to receive payments within a week, and we
undertake to deposit Rs.74,000 (Rupees Seventy Four Thousand Only) in cash within
a weeks time to meet this temporary overdrawing.

Under the circumstances, we hope you will accommodate us by allowing

overdrawing of our account for this short period.

Yours
.- faithfully,

for Eureka Paper Mills Ltd.

K.N. Bhat
General manager

Check Your Progress 6 .

1) What are the disadvantages of fonn letters?

2) What should the receiver of a complaint letter do after he receives such a
letter?
3) Name the letters written by the business firm before a firm is given an
agency.
4) What is a letter of standing instruction?

27.5. LET US SUM UP

As modem business involves, dealing with quite a number of agencies, detailed

communication is possible only through letters. Since letters are so integral and
important they should be written properly so that the communication is effective,
positive and proper. A business letter has to have clarity of thought, it should be
brief, explain only one subject, be polite, convincing, appealing, and attractive. It
should have a certain style, should avoid superfluous language, and unnecessary
 explanations. Therefore, in order to incorporate these essentials the business letters Business
should be properly planned after assembling relevant facts. Correspondence

A businessperson writes numerous letters, some of them may be form letters i.e.
some letters written to many people. Some letters like letters of enquiry, quotations,
orders, acceptances etc. are specific letters written to a particular firm keeping in
mind what we have to buy or sell.
i Apart from this there are bound to be complaints and adjustments in business
\
dealings. A businessperson writes such kinds of letters to its clients, railways,
insurance agencies, etc. Every businessperson appoints an agent to sell his product.
Before an agent is appointed his business dealings and credit worthiness is to be
I enquired. A businessperson writes such kinds of letters also, which are commonly
known as agency letters.

Banks, nowadays, apart, fiom the usual operating the Bank accounts, give numerous
services i.e. collection of cheques, retirement of bills, h i s h i n g bank etc.
A businessperson writes banking letters also to utilise the different kinds of services
provided by the banks.

27.6. KEY WORDS

Agency Letters: Any written communication regarding the business dealing

of a firm with another firm acting as its agent.

Banking Letters: Letters written to a Bank for utilising some financial services
offered by the Bank.

Business Letters: A letter written by a businessman for seeking or giving

business information.

Dunning Letters: Letters written by sellers in a firm to buyers demanding

payment where payment is not made after repeated
reminders.

Form Letter: An identical letter sent to a large number of persons or firms.

Quotations: A document h i s h i n g information about the quality and
prices of goods, cost of packing, transportation, time of
supply and other services.