Dear :

Thank you for offering us a sole agency for your products in [country/area].

We are confident that we can handle the kind of business you described in your letter of [date], and we agree with you that the demand for [goods] here is increasing. However, there are some points we would like to clarify with you before we make a decision.

1. How would payment be arranged? Bill of exchange, letter of credit, or bank draft?

2. How would you help us with advertising?

3. If a disagreement arises over the terms of the contract, who would be referred to in arbitration?

4. How long would the initial contract run?

If you can send us a draft contract including all the necessary details, we will give you a more definite reply. We look forward to hearing from you soon.

Yours sincerely,

[name]

[title]