Direct & Indirect Speech

Direct Speech

When exactly we report what another person has said, we use the direct style. With this style what the person has said is placed between quotation marks ("...") and should be word for word.

Example:

The Dr. said, "Susan is sick, but she just needs a rest"

Report Speech or Indirect Speech

It is a means of expressing the content of statements, questions or other utterances, not use quotes and need not be word for word. In general, when the indirect style is used, the tense changes.

 Tense Changes:

 

Source:
http://www.curso-ingles.com/gramatica-inglesa/reported.php
http://en.wikipedia.org/wiki/Indirect_speech
http://www.ilmoamal.org/bms/attachments/course_pics/grade3_gr_unit11_1.jpg
http://www.epicmorocco.com/wp-content/uploads/2013/03/reportedconversation.png
http://www.englishexercises.org/makeagame/my_documents/my_pictures/2008/ago/Reported_Spch.png