Arranging insurance cover for the buyer

Mr. Paul Ramsey Grange Furnishing Inc. 666 Third Avenue Chicago Illinois USA Dear Mr. Ramsey, We refer to contract no. 645 for 500 pieces of printed cotton. The contract was made on a C&F basis, whereas your letter of credit stipulates CIF. This inconsistency must obviously, be resolved. To avoid any further delay in shipping, we suggest that we arrange the necessary insurance cover. The premium will cost US$140 and we could deduct it from the 2% commission payable to you. The balance of the commission will be remitted to you as soon as the proceeds from the letter of credit have been collected. We trust that this arrangement will be acceptable. Please fax your confirmation as soon as possible. Yours faithfully,		Useful phrases Line 2 This inconsistency must obviously be resolved. Line 4 To avoid any further delay in shipping, we suggest that we arrange the necessary insurance cover. Notes Para. 1 Identify the reference. Para. 2 Point out the inconsistency between the contract and the L/C. Para. 3 Suggest a solution. Para. 4 Give details of the extra cost and how you propose to charge it. Para. 5 Ask for confirmation of the proposal.
Comments The vendor has identified a disparity between the contract and the L/C. If the goods are shipped CIF the vendor will lose money since the contract was made on C&F terms. The proposal is quite reasonable and should be acceptable to the purchaser.	Alternative phrases Line 1   With reference to . . . Line 2   We made the contract on a C&F basis but your letter of credit asks for . . . Line 2   obviously, we should resolve this contradiction. Line 4   To eliminate any further delay . . . Line 6   The balance will be forwarded to you as soon as the letter of credit is opened. Line 8   We hope you will agree to this proposal. Line 8   Please confirm this . . .