Section 2: Business Contracts

The Sale of Goods Act 1979 and the Supply of Goods and Services Act 1982 lay down fundamental terms about the sale of goods and contracts for the supply of goods and services which all business contracts must comply with. They are as follows: • the seller must have title • goods/services must be of merchantable quality • goods/services must be fit for a particular purpose • goods/services must be as described • there must be no misrepresentations At common law, suppliers of services, e. g. plumbers, builders, repairers, etc., have a duty to exercise reasonable care and skill in carrying out their jobs. Professionals, e. g. solicitors have to exercise the degree of care which is to be expected of a professional man of ordinary competence and experience. These common law duties have now been clarified and enhanced by the 1982 Act. The 1982 Act implies in each contract, under which a person agrees to carry out the service, that the supplier will carry out the service with reasonable care and skill. It must be noted, however, that this applies only where the services are provided as part of a business, but does not apply to services given free, nor to advocates in connection with their appearances in court, company directors or building societies. The main standard terms and conditions of a contract are as follows: • Names of the parties to the contract • Subject of the contract • Price • Terms of delivery • Time of delivery • Terms of payment, including time of payment, currency in which payment is to be made, etc. • Risk and property • Warranties • Arbitration • Termination • Governing law The contract is to stipulate which legal system is to regulate any dispute. This is very important, as otherwise large sums can be spent just deciding which legal system applies.

Vocabulary notes

	to lay down		1) сложить (полномочия), оставить службу
			2) устанавливать, утверждать
	to lay down the duties of office		отказаться от должности
	to lay down the law		устанавливать, формулировать закон
	to comply with smth	[k@m'plaI]	1) исполнять что-либо; 2) подчиняться чему-либо
	title	[taItl]	1) право собственности;
			2) документ, дающий право собственности;
			3) заголовок
	merchantable	['m@:tS@nt@bl]	ходовой (о товаре)
	quality	['kwolItI]	качество
	misrepresentation	['mIs,reprIz@n'teISn]	искажение
	plumber	['рlöm@]	1) водопроводчик;
			2) паяльщик
	skill		искусство, мастерство, умение, ловкость, сноровка
	to clarify	['kl{rIfaI]	разъяснять, вносить ясность
	to clarify the disputes		улаживать споры
warranty	['wor@ntI]	гарантия, ручательство
arbitration	[,a:bI'treISn]	третейский суд, арбитраж
otherwise	['öD@waIz]	в противном случае, иначе

Words and Grammar

a Find the English equivalents in the text and make short sentences, on the basis of the text:

искажение................................. иметь право собственности............

гарантия ................................... ...........................................................

арбитраж................................... разъяснять обязанности..................

проявлять внимание и умение это следующее (условие)................

................................................... ..........................................................

b Insert the correct prepositions and make short sentences, with the following word combinations and phrases:

to comply... terms...............................................................................

to be... merchantable quality...............................................................

to be fit... a particular purpose............................................................

to carry out a service... a contract.......................................................

to apply... services..............................................................................

to exercise care and skill... carrying out a job....................................

a party... the contract..........................................................................

с Write down the words from which the following words are formed:

merchantable................... skillful.......................................

fundamental..................... payment....................................

reasonable........................ misrepresentation....................

professional...................... service.......................................

d Write down the words with a negative meaning, using the prefixes: -un, mis-, -in, -il, -sub:

representation ..misrepresentation..to apply..........................................

appropriation................................ to calculate.....................................

appropriate................................... to inform........................................

understanding............................... informative....................................

fortune........................................... literate............................................

fortunate........................................ standard.........................................

e Underline the predicates, write down the form in which the verbs are used and translate the sentences into Russian:

1 These two acts lay down fundamental terms about the sale of goods and contracts........................................

2 Goods or services must be as described...........................................................................................................

3 Professionals have to exercise the degree of care which is to be expected of a professional man..................

..............................................................................................................................................................................

4 These common law duties have been clarified and enhanced by the 1982 Act...............................................

......................................^:.......................................................................................................................................

5 The Act implies that the supplier will carry out the service with reasonable care and skill............................

§ Suggested activities

fAnswer the following questions:

Section 2: Business Contracts - student2.ru