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1. You have to ensure that your business partner will settle all financial obliga-
tions even before you finish the transaction. Explain this to your receptionist
as you ask her for an irrevocable letter from your business partner.

Sample answer:
Mr. Kim is a new client and this is our first time to do business with him. He has promised to
settle all outstanding balance of his orders the moment the transaction is done. This is the first
time that we are accepting this kind of agreement. However, our Accounting Office wants a
written assurance for this; hence, they are asking for an irrevocable letter. Please call up Mr.
Kim’s office and relay this request. Please clearly explain our reason for asking for this kind of
letter. Relay our hope that we wish they will understand our situation.

2. You want to assure your client that you will fulfill your financial obligations
the moment the transaction is over. You know that this is quite a big demand
considering that this is your first transaction as partners. You don’t want to
sign an irrevocable letter because this might be a precedent, when you want
to have future deals that need not resort to irrevocable letters. Assure your
partner that he can trust you.

Sample answer:
I appreciate your candidness for asking such a letter from our company. We understand where
you are coming from, especially because this is our first time to do business together. However,
we hope that you will also understand our situation and we ask you to give your full trust to
us. We have been doing business with only our verbal promise most of the time and we have
managed to build up a good reputation for our business. You can ask about us in the field, and
modesty aside, we’re sure that you will only get good comments. We also plan to do business
with you in the future, so rest assured that we won’t do anything to lose your trust on us. Please
understand that our word is truly a good enough assurance that we will settle our balance
before the transaction is over.

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