DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : A. Kondaiah swamy

Designation : Lecturer
Branch : Commercial and Computer Practice

Year/Semester : IV semester
Subject : Business Correspondence
Subject Code : CCP-404(1/8)
Topic : Understand Confirmation, Execution
& Cancellation of order.
Duration : 50 Mts
Sub Topic : Meaning of Confirmation, Execution
& Cancellation of Order.
Teaching Aids
: PPT, ANIMATIONS
CCP404.13 1
Objectives

 On the completion of this period, you would be able to

 Explain the meaning of
1. Confirmation of Order
2. Execution of Order
3. Cancellation of Order

CCP404.13 2
Meaning of confirmation of order:
 This letter is sent by the seller to the buyer in response to the
letter of order.

 After receiving the order, a letter of confirmation or

acceptance must be sent to the customer .

CCP404.13 3
 Contd..

 Confirmation letter contains the acknowledgement of the

order
 It contains the acceptance of the order
 The details of dispatch of goods are mentioned in this
letter

CCP404.13 4
Confirmation of Order letter – contents:
 Order Numbers
 Name of the item
 Quality
 Quantity
 Price
 Time of delivery etc.,

CCP404.13 5
 Contd..

 If the supplier wants some more time for the execution, a

request may be made in this letter.

 If this letter is not sent within a reasonable time, then the

customer may cancel the order.

CCP404.13 6
2. Meaning of execution of order
 This letter is sent by the seller to the buyer.

 After the confirmation of the order, the seller will execute the
order.

 Execution of order means supplying the goods as per the

order.

CCP404.13 7
 Contd..
 A letter informing about despatch of goods is Letter
of execution of order.

 On receipt of order, seller should take every care for

prompt and quick despatch of ordered goods to buyer

 A letter of execution of order should contain

information relating to the time of delivery, mode of
transport etc.,

CCP404.13 8
 Contd..

 If a part of goods ordered is supplied, clear

information must be given as to why remaining items
are not supplied.

 If the execution of order is delayed, cause of delay

should be informed to the buyer in this letter.

CCP404.13 9
Execution of order letter should cover the
following details
 Quality
 Quantity
 Brand
 Packing
 Value of goods
 Mode of payment etc.,
 Mode of transport
 Other details it any.

CCP404.13 10
Cancellation of order
 This letter is written by a buyer to the seller.

 A letter written cancelling the Order is called

‘cancellation of order letter’.

 It must mention the reasons for the cancellation.

CCP404.13 11
 Contd..

 If buyer is cancelling the order, communication of

cancellation must reach the seller before execution of
order.

 If the cancellation letter is sent after execution of order, the

buyer will have to accept the goods (or)

 To pay the damages for committing breach of contract.

CCP404.13 12
Reasons for order cancellation:

 Delay in execution of order

 Variation in the prices
 Insolvency of the firm
 Goods despatched other than ordered goods
 Variation in quality
 Cancellation or the order by the customer of the
Buyer etc.,

CCP404.13 13
 QUIZ
1. A Letter of Execution of Order is sent by
• Buyer
• Seller
• Mediator
• None
2. Cancellation of order letter is sent by
• Buyer
• Seller
• Manufacturer
• None
Ans: 1- B 2-A
CCP404.13 14
Frequently Asked Questions

1. What is the purpose of confirmation letters?

2. When an execution of order letter is written?
3. State any four reasons for cancellation of the order?

CCP404.13 15