C. Answer the questions

1) Why are standard contracts widely used?

2) What are the essential items of a contract?

3) What information is contained in different sections of a contract?

4) What sort of prices may be indicated in a contract?

5) What is a check?

6) Whom do you give TT terms to?

7) What are the two types of drafts?

8) What is an irrevocable L/C?

9) Who guarantees payment against a confirmed letter of credit?

10) Does a term draft involve risk for an exporter?

D. The words below are often used in connection with contracts. Use some of them to complete the sentences which follow. You may need to put certain words in the plural.

terminate condition provide for litigation clause binding

arbitration out of court section compromise breach term

agreement party comply with/abide by

1) A contract is an … drawn up between two … It is divided into …, …, and …

2) The contract … … any problems between two parties. The conditions of the contract are … on both parties. If one party does not want … … the clauses, this is called a … of a contract.

3) In the case of a dispute, many contracts provide for …, but in some cases the dispute results in … Most parties reach a … without going to court, and the dispute is settled … …

4) Some contracts are for a fixed period, or …, also, there are ways in which the parties can end, or …, the contract.

Reading 4: Draft Contract

The firm BINGO Ltd hereinafter known as the «SELLER», on the one hand, and MONKBERRY MOON DELIGHT plc hereinafter referred to as the «BUYER», on the other hand have concluded the present Contract on the following: The Seller undertakes to sell the Buyer and the Buyer undertakes to buy 120,000 super widgets* in accordance with specification and conditions stipulated in Annexe No. 1 to the present Contract, which is an integral part of this Contract. All freight/loading and insurance charges will be covered by the Seller. The terms of payment and immediate payment of delivery charges by confirmed and irrevocable letter of credit are to be standard. A penalty clause will be included in the contract. It will be invoked against the Seller for late delivery or substandard quality; against the Buyer for late payment. In the event of non-payment, the Seller shall be entitled to reclaim the goods. In case of dispute between the parties to the contract, the matter will be taken to independent arbitration. All the terms of the contract must be compiled with both parties.

* widget - условное название для любого вида товаров

A. Answer the questions.

1) What is an integral part of this Contract?

2) What firm will pay all freight/loading and insurance charges?

3) How will be the payment effected?

4) In what case does the Seller pay penalty?

5) When is the Seller entitled to reclaim the goods?

B. Here are some notes on an agreement between the Company of Professional Congress Organizers (CPСО), specialists in organizing congresses, and the Confederation of International industries (CII), who are planning to hold a congress. On reading the notes you are supposed to do exercises.

Contract notes

Terms of agreement between CPCO and CII, regarding The Industry Congress 2012: CPCO shall 1 … as a consultant and make necessary arrangements for the conference. 2 … in planning meetings. 3 …the organizational and administrative work. 4 ..., immediately before and during the conference, special office and secretariate. CII shall 5 … responsible for the professional, technical and scientific content of the programme. 6 … a scientific secretariate. CPCO agrees to 7 … a budget. 8 … fees. 9 … a final account of all receipts and expenditure. CII agrees to 10 … an advance cash flow to the conference account until receipt of fees or other income. 11 … overall financial responsibility for the conference. 12 … CPCO to act on their behalf. Cancellation: CII shall assume responsibility for all costs in the event of cancellation. (Note: An appropriate arbitration clause - with the title of an Arbitration Tribunal and the stipulation that any hearing be conducted in an acceptable language to both parties - should be included, along with details of the financial agreements already agreed.)

C. There are twelve verbs missing from the text. Choose the correct one from the three possibilities given below.

1) act / present / be

2) participate / invest / address

3) require / undertake / meet

4) invite / set up / deliver

5) be / pay / earn

6) compete / provide / fax

7) purchase / trade / draw up

8) call / demonstrate / collect

9) sell / produce / let

10) count/maintain/solve

11) manufacture / accept / train