SDLTM82820 - Compliance: Concluding an enquiry

Contract settlements: Letters of offer: Contents of the letter

The letter of offer should be made enforceable by sending the purchaser or agent of a draft letter.

When the draft letter of offer is complete the compliance caseworker should check that the wording is wholly satisfactory. For example, does the letter make sense? Does it

• set out in clear and unambiguous words the terms which have been agreed, or which you expect to be agreed at the settlement interview
• set out the amount of the payment to be made by the purchaser
• set out all the duties taken into account in framing the offer
• contain a reference to the purchaser’s failure or default
• mention interest and/or penalties
• set out the gross amount of the offer before any deductions
• show separately, and in precise terms, any deduction
• say precisely when payment is to be made
• include the standard interest clause

Is the letter of offer suitably worded for signature by the person(s) intended to sign it?

A purchaser who marks an offer without prejudice does so to prevent the offer from being used subsequently.

If the offer is not accepted it cannot be used as evidence that, for example, certain figures have been agreed. A note referring to this instruction should be attached to the offer. This will ensure that the offer is not inadvertently used improperly.

If the offer is accepted, the marking is no bar to its acceptance.

Undated offer

If the offer is not dated it does not make it unacceptable, the letter of acceptance can read

‘your recent letter in which you offer to pay the sum of £ ….. ‘or
‘your offer to pay £ ….. a copy of which is attached.’

If the offer is forwarded with a covering letter by an agent

‘your client’s offer received with your letter dated …..’

The assumed date of posting should not be referred to.