Warming up
Ex. 1. Read the following abstract and discuss the questions below.
This contract is binding, and we expect all the parts involved (both clients and suppliers) to abide by the terms and conditions stated in sections 3a–37g on pages 1–17.
1. One of the underlined words / expressions in the above sentence is wrong. Identify and correct it.
2. True or false: A contract which is binding is flexible and can be changed at any time.
3. Which of these words / expressions could replace abide by?
а) Choose b) agree with c) obey d) change
Language input
Ex. 2. The words below are often used in connection with contracts. Learn the new words and word combinations. Consult the dictionary if you don’t know the meaning.
| abide by | condition |
| agreement | litigation |
| arbitration | out of court |
| binding | party |
| breach of contract | provide for |
| cause | section |
| comply with | term |
| compromise | terminate |
Ex. 3. Fill in the gaps with the phrases above and speak on what you’ve learnt about contracts.
1. A contract is an … drawn up between two …. It is divided into …, and ….
2. The contract … … any problems between the two parties. The conditions of the contract are … on both parties. If one party does not … the clauses, this is called a … of 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.
Ex. 4. Read the five rules people should know before they sign a contract. Comment on each of them.
1. Be aware that a contract is a legal document, bound by legal provisions and stipulations.
2. Make sure that you are dealing with trustworthy and reliable companies.
3. Know the fine print.
4. Make sure that all of the details about the contract are fully stated.
5. Make certain that there are no blank spaces in the contract.
Ex. 5. Practice the dialogue and answer the questions below.
Karen Sheds is in Paris, where she has just been watching the showing of Nicole Vernay’s collection.
Karen: Nicole, the dresses are wonderful, my customers on the West Coast are going to love them.
Nicole: Thank you. There were one or two tricky moments, but I think it all worked out in the end.
Karen: One thing in the show did bother me, though.
Nicole: Really? What was that?
Karen: All those so-called fashion correspondents with their sketch books, sketching everything that came through the door. I don’t see them here at the reception.
Nicole: Oh, they’ve gone off to file their stories for tomorrow’s newspapers.
Karen: Some of them may be, but a lot of them are busy faxing those sketches back home to the sweatshops. By tomorrow they’ll be turning out Nicole Vernay exclusives ready to ship – and they’ll have you all stitched up.
Nicole: Well, I’ve signed a deal with very respectable firm in South Korea. They already have my designs, so I hope that the pirates won’t be able to compete.
Karen: Great idea! Does that mean I have to order from Korea as well?
Nicole: Yes, I’m sorry, Karen – Skopje’s will have to place its orders with Fashionpark just like everyone else. Even I have to get my stock from them – for my own little boutiques here in Paris.
1. What is Karen worried about?
2. Why is Nicole not worried?
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Ex. 6. The freight forwarder writes to Skopje’s to say that the goods have been shipped. Read the letter carefully, and check the details against the bill of landing in ex. 7. Are the details correct?
Ex. 7. Produce a dialogue based on the suggested topic.
You work as a clerk in the buying department of Skopje’s. A customs official rings, asking for particulars of the bill of landing. Read the official’s part of the conversation, and write down the clerk’s replies using the details from the bill of landing below and the letter in ex. 6.
Official: Ok. What’s the serial number?
Clerk: ………………………………….
Official: And is there a reference number for forwarding agent
Clerk: ………………………………….
Official: Ok. Consignee’s name and address, please.
Clerk: ………………………………….
Official: And the name of the ship?
Clerk: ………………………………….
Official: Loading Inchon, is that right?
Clerk: ………………………………….
Official: And where’s she discharging?
Clerk: ………………………………….
Official: Now, I need the details of marks and numbers on the cases.
Clerk: ………………………………….
Official: Right, now the number and description of the packages.
Clerk: ………………………………….
Official: Gross weight?
Clerk: ………………………………….
Official: Any measurements?
Clerk: …………………………………..
Official: Now give me the place and date of issue of the bill of landing.
Clerk: …………………………………..
Official: And the number of bills in the set.
Clerk: …………………………………….
Official: Ok, thank you.
Clerk: You’re welcome. Have a nice day.
Ex. 8. Park, Nicole and Karen meet, months later, in Paris. Practice the dialogue and answer the following questions.
Karen: One thing strikes me about the rag trade nowadays: delivery times are too long, and that’s one area where we can still make significant savings. Next time I order from you, Mr. Park, I want at least thirty per cent of the shipment sent by air freight.
Park: Fine. If you want, I’ll charter a jumbo and send the whole lot by air.
Karen: Two other stores in LA were selling Nicole Vernay dresses before I was – and that can’t happen again.
Nicole: I am surprised that Fashionpark doesn’t start up a North American subsidiary to handle its distribution.
Park: Well, this is off the record, you understand, but I think we may do that quite soon. Also in Europe.
Karen: Well, now, Mr. Park, if you are looking for someone who knows the fashion business on the west Coast inside out ….
Park: Oh, shall I know where to come!
Nicole: It will certainly be a great help to have your warehouse somewhere close to Paris. The ordering will be so much more flexible – we can respond more quickly to the market.
Karen: And we can just write a dollar check instead of all those letters of credit and banker’s drafts.
1. Why does Karen complain about delivery times?
2. What solution does Park have?
Ex. 9.Park, Nicole and Karen continue their discussion. Practice the dialogue and answer the questions:
Are Park and Nicole enthusiastic about Karen’s proposed “vertical integration”?
Karen: What do you do with those bills of exchange, Park? Wait for ninety days and then change the dollars into Korean won?
Park: It depends on the state of the currency market. Once the bill has been accepted, it’s negotiable – can I sell it for cash anywhere I like, at a discount of course. Right now I’d probably get it discounted in Tokyo.
Nicole: Aren’t you going to have problems, setting up inside the European Community?
Karen: Yeah, and in the United States – we’re very protectionist, you know.
Park: Well, there are ways to overcome problems like that.
Nicole: Something like a joint venture, perhaps?
Karen: Hey, how about that? The three of us. An international marketing consortium! Vertical integration – designer, manufacturer, distributor, all under one umbrella.
Nicole: No thank you!
Park: These companies under one umbrella – all get wet.
Ex. 10. Find words in ex. 8 and in ex. 9 that tell you the following:
1. I’ll hire Boeing 747 to make a special trip.
2. To look after the sale of your corporation’s products.
3. Please don’t tell anyone I told you this.
4. When there is a sudden demand, we shall be able to meet it.
5. The relative values of different currencies.
6. I would probably exchange the bill for cash.
7. We don’t encourage foreign goods or businesses to enter our country.
8. I think that’s a very good idea.
9. A group of companies which act together, though they may not be formally linked.
Ex. 11. Insert words or phrases you find appropriate and act out the dialogue.
V. Klimov, Commercial Director of TST systems, is due to leave for Moscow soon, but early in the morning he calls to Mr. Cartwright’s office for some talks.