And list the principal ideas.

XII. Write an essay about the Contract making use of the information in the texts “The Contract” and “Interpretation of Contracts”.

Before you start writing put down the following:

1) types of contracts mentioned in the texts;

2) other types you know which are not mentioned here;

3) your own illustrations of various contracts;

4) new information about contracts which you would put into practice.

5) Types of contracts you happened to make;

6) Types of contracts you consider most important; why;

7) What you would like to add about the interpretation of contracts;

While writing an essay make use of the following connectives which will help you shape your ideas:

Addition: specifically, in other words, that is to say, to explain;

Explanation: for example, for instance, to illustrate;

Contrast: none the less; still; yet; whereas;

Cause: consequently, for;

Summing up: to sum up.

Text 2.

Prices and Terms of Delivery

When sellers quote prices in their offers they usually state on what terms,at this price,they will deliver the goods. The price will certainly depend on the terms of delivery. The most popular terms of delivery in foreign business transactions are:

• fob (free on board)

• cif (cost, insurance and freight)

• с & f (cost and freight)

• for (free on rail)

If the goods are offered on fobterms the price will practically include the cost of the goods and transportation expenses to the port of shipment.

If the goods are offered on cif terms the price will cover the cost of the goods, insurance expenses and freight or transportation expenses, to the port of destination. If the goods are offered on cif terms the price will cover the cost of the goods and freight to the port of destination. If the goods are offered on for terms the price will include the cost of the goods and transportation expenses to the railway station only. These terms are similar to fob terms. The only difference is the mode of transportation. In case of fob terms the goods are shipped on board ships. In case of for terms the goods are transported by railway. Here are a few examples of how terms of delivery can be mentioned in offers:

• The price is USD 2,000.0 0per ton fob New York.

• The quoted price is GBP 1,200. 00 each cif Murmansk.

• We can offer the goods at the price of GBP 78.00 per metreсif Liverpool.

• The goods are offered on a for basis.

Text-study

I. Learn the words.

to quote	назначать (цену)
quotation	цена, котировка
f ob	фоб
сif	сиф
с & f	каф
for	франко железнодорожная станция
expenses	расходы
port; port of shipment; port of destination	Порт; порт погрузки порт назначения
to cover	покрывать, компен­сировать
to insure; insurance; insurance expenses	Страховать; страхование; расходы по страхованию
freight	фрахт
mode; mode of transportation	способ способ перевозки
to ship; shipment ship; shipper	Отгружать; отгрузка; судно; грузоотправитель
per head	на человека

II. Complete the sentences, as in the text:

1. When sellers quote prices in their offers they usually...

2. The price will certainly depend он...

3. The most popular terms of delivery in foreign business transactions are...

4. If the goods arc offered on f о b terms the price . . .

5. If the goods are offered on cif terms the price...

6. If the goods are offered on с & f terms...

7. If the goods are offered on for terms...

III. Say what the following means:

the fobprice

the for price

the cif price

the с & f price

IV. Translate the examples of how terms of delivery can be mentioned quoted in the text.

V. Translate into English:

1. Цена составляет З тыс. долл. США, фоб Рига.

2. Названная цена указана в английских фунтах стерлигнгов — 1300 за штуку сиф Одесса.

3. Мы можем предложить товар по 72 ф.ст. за метр на условиях каф Москва.

4. Товар предлагается на условиях франко желез­нодорожная станция.

VI. Work as one group. Give the examples of terms of delivery in foreign business transactions.

Text 3.

Terms of Payment

Offers usually state the terms on which the goods are to be paid or terms of payment. Terms of payment usually mean the currency, time of payment, mode of payment and many details.

In foreign trade transactions various modes of payment are practised, among which the most popular are as follows:

• by a banker's transfer

• by a letter of credit

• for collection

• by drafts

• on an open account

Sometimes mixed terms are practised. That depends on the value of the goods, volume of the goods, time of delivery and many other factors.

Here is an example of how terms of payment can be stipu­lated in the offer for some expensive sophisticated equipment:

We propose the following terms of payment:

Ten percent of Ihe total sum should be paid in advance by telegraphic banker's transfer.

Fifty percent of the total sum should be paid by tele­graphic banker's transfer within 30 days after your bank receives shipping documents.

Forty percent of the total sum should be paid by drafts at 90 days' sight.

Text-study