Once you have mastered seeking quotations and consider inquiries made to you - over time; you’ll need to master making an ‘offer’ under the auspices of practice. The offer is the most important document that you will need to produce as your PCT status becomes apparent. A PCT acts a ‘Seller’ on one side of the deal. When selling sourced goods the seller masters to produce an ‘Offer.’ When ‘Buying’ sourced goods, the PCT make an ‘Offer to Procure’ (OTP). The contract step, by comparison, is a much easier step to apply. Once you have made a few ‘good looking’ and properly defined offers, then copying a document and changing aspect therein to suit the deal becomes as easier process, thus every offer document created serves as a future template. It’s a crucial part of the learning application that you fully write your own ‘offers’ when you start. Simply cutting and pasting our basic aspect is the wrong aspect to apply, as the thought process will not store such information to the mind, when compared to a PCT writing the whole document from header to signature. Once 5 offers have been created, the PCT may then start using offer formats made, as templates. When you can write an offer without needing reference of the doctrine; this is the sign that you are ready to trade in live deals.
The doctrine has everything you need to know about creating the offer to the supplier or end buyer. It advises upon matters of law and rules and defines what your parameters are. An offer once signed has legal force, regardless if its ‘subject to a contract.’ Some say differently, experience reinforces our position. In some cases an offer may actually have a legally binding effect, even if the signed contract is not forthcoming. Therefore an offer is never served lightly. ITB’s, Quotes and Offers is where your main lessons emanate from. Many offers may need to be advised before one deal head towards contract, hence the offer must be advised in a very clear and specific manner. The offer once signed legally serves ‘clear intentions’ that parties to an acceptable offer, are expecting to sign a contract. An offer can only be accepted or rejected and is sent away via email in PDF form, with the world ‘original’ apparent.
The PCT may later over see its own string member to assist in a deal but only in matters of sourcing suppliers or end buyers. The offer and contract can only be enacted upon by the PCT and ‘Principal.’ A principal may only conduct business with another Principals. The rule here is very clear as defined in the doctrine. The PCT ( as Principal ) must secure supply directly from a ‘disclosed export ready supplier.’ This aspect is supported by a legal principle that allows the PCT to trade correctly (Ostensible Authority.) The PCT is acting on ‘behalf of an undisclosed principal’ unless it’s acting as an agent or broker, in where the PCT is acting on “behalf of a disclosed principal.” The former aspect is the main position of the PCT, the latter may be attempted if the opportunity arises, but in essence the latter aspect is where the lucrative deals and large profits can be generated. The former aspect is rarely attempted by most traders taking up the study; even though both aspect are apparent. For now we are describing the whole ‘undisclosed’ trading aspect that must be mastered, as it applies to a PCT trading without string members. The PCT sources a supplier by seeking a quote and services the end buyer with an offer accordingly. An OTP or even Memorandum of Understanding ( MOU) for very complex deals can also be used by the PCT when securing goods. The PCT will be offering goods to potential end buyers often, as trading proficiency levels rise, and as each deal fails, lessons are delivered, until such a time the offer heads towards contract, following a long standing well practiced and strictly applied trading routine. The PCT will not head to contract for the first 10/12 months is assumed from the start. The PCT will have plenty time to master the process, because a live deal will not become apparent for some time when the PCT starts to trade. ‘Mistakes serves experience and long time experience closes deals.’ The PCT follows the instruction served in the doctrine and by doing so remains fully protected from litigation or legal challenges accordingly–even if mistakes are made.
ITSI has a copy of the standard FOB contract models used by the PCT. Each doctrine has the latest model based on the ITSI standard. From FOB, we add and deleted a few paragraphs to arrive at the CFR, CIF, CIP and FCA delivery mode and supporting contract model. Once the PCT secures a signed contract and supporting financial instrument from the end buyer and has signed the contract with its supplier, the deal is technically closed once the buy price value is transferred from the bank of the PCT to the bank of the supplier. This is the time for celebrations–as you have closed your first deal. The profit earned by the PCT, the difference between the buy and sell price in the ‘flipping of the contract process’ remains in the account of the PCT and becomes collectible once the delivery process is finalised. No possibility of circumvention is possible; the PCT is guaranteed to earn its profit, as each (revolving) shipment is delivered. The contract simply extends upon fully all aspect of the offer made previously and there is little room for alteration to its basis.
Strange as it may seem, what is not written in other academic level trade publications is as follows. Experience dictates that once the contract is closed and funds have been transferred, issues that arise thereafter are keenly resolved between the PCT and his supplier or the PCT and his end buyer. While the doctrine explains such issues in depth, the underlying expectation is a simple one to understand. The end buyer simply wants his goods ‘as ordered’ to arrive and the supplier simply wants to ensure that he has a very strong or superior method of payment to collect upon once his or her part is done. Even if problems with a deal are encountered like delays, over or under scheduling, unexpected charges, documentary errors, etc.etc.; the PCT works with the principal on the side effected, to resolve such issues amicably and privately even if it means surrendering some of its profits as a rebate (remedy via compensation) to satisfy the party or side suffering an unexpected and ‘undue loss.’ Nobody with real purchase intent wants to go to court and nobody will breach a contract because of a mistake, on the condition that the goods are real and ‘will arrive in due course.’ Even in these trying times ( Covid 19) goods must be exported and imported and delays may eventuate in where parties to the contract can readily assist each other amicably for a common purpose to resolve issues. The supplier will get paid, and the end buyer will receive the goods ordered. In this light it’s the offer aspect that must be intently served by the PCT and is the most crucial aspect that must be mastered above all others.A good offer will plain every aspect of the deal is the shortest form .The contract is the final station at the end of the line, that clarifies the offer.
© FTNX Last Updated:13 July 2020