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.