Match the types of contract to their definitions.
| 1. a lease | a) a contract between a seller (or vendor) and a buyer (or purchaser) |
| 2. an employment contract | b) a contract between an employer and employee |
| 3. a contract of sale | c) a contract between an insurance company and a person who pays for the insurance |
| 4. an insurance policy | d) a contract which allows one party (the tenant) to use the land or property of the other party (the landlord) for a specified period of time |
| 5. a software license | e) a contract which allows someone to use a computer programme |
| 6. a credit agreement | f) a legal contract in which a bank agrees to loan a customer a certain amount of money for a specified amount of time |
Contracts often use formal and outdated language. Look at the example. Can you guess what the word “hereinafter” means?
“The supplier delivers the goods to the entrance of the customer; hereinafter the customer is responsible for the goods.”
Match some other “contract” phrases with their meanings:
hereinafter heretofore whereas herein in behalf of hereby
1. in here; in this (document etc)
2. up until now; until the present; before this
3. in the interests of (person etc)
4. starting from a particular time
5. it being the case that; in view of the fact that
6. as a result
Use these examples to help you:
· The company named above (hereinafter referred to as "the contractor") ...
· the schedule hereto attached
· payment of the obligations herein
· We do not warrant that the website will meet all your needs.
· By signing this contract, you hereby accept the terms and conditions.
Read an extract from a contract between a supplier and a customer.
Contract Agreement
Supplier: The Office Furniture Company
Customer: National Bank, London
1. Definition of Terms:
a. “Products” refers to all those items listed on the price listing spread sheet and any item supplied by The Office Furniture Company hereinafter.
b. “Supplier” refers to The Office Furniture Company.
c. “Buyer” refers to National Bank, London.
d. “Stock” refers to the items purchased by the buyer.
Duration of the Contract
a) The Contract enters into effect on the date it is signed by each party and has a fixed term ending on December 31st 2014. This contract may be altered at any time by the supplier to suit availability of product and shipment.
b) The contract can be terminated at any time by the supplier and any deal made heretofore become null and void, at no extra cost of the supplier. The supplier is not liable to pay any compensation to the buyer.
Delivery
a) Once the stock has left the supplier’s warehouse, the supplier relinquishes responsibility hereinafter and the buyer assumes full responsibility of the stock and is liable to pay for any damage caused during the loading, transportation and unloading processes. Any damage to the products cannot be held accountable in behalf of the supplier.
b) One condition is that the supplier must receive payment in full before any items can be dispatched. If supplier has not received the payment in full, the supplier is permitted to hold the items in their warehouse without release.
Price
a) The price agreement between the two parties, supplier and buyer, is fixed for 6 months and hereinafter renegotiated by the supplier and the buyer agrees to pay any additional costs proposed by the supplier.
b) The purchase price for the relevant office furniture delivered is to be paid net within 1 day from the date of invoice for the delivery.
Answer the questions:
· What is the subject of this agreement?
· What are the main terms of the contract?
· In your opinion, is this contract supplier-friendly or customer-friendly? Prove your point of view with the words from the contract.
· How would you change this contract if you were the customer?
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