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Direct and Indirect Speech :

Quoting the actual words of a speaker is termed as Direct Speech.
Reporting what a person said without quoting his exact words is termed as Indirect (or Reported) Speech.

Some Common Examples :
 

1.  He says, “I am, ready”.
    He says that he is ready.”

 
2.  He has said to me, “I did not do it”.
    He has told me that he did not do it.

 
3.  He will say, “I am ready”.
    He will say that he is ready.

4.  He said, “I write letters”.
    He said that he wrote letters.

5.  He said, “I wrote a letter”.
    He said that he had written a letter.

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