Balance of payments   balance of trade           division of labour

barteror counter-trade climate                            commodities

Economies of scale       factors of production  nations

Protectionism                quotas                              tariffs

(1) Countries import some goods and services from abroad, and export others to the rest of the world. Trade in (2) raw materials and goods is called visible trade in Britain and merchandise trade in the US. Services, such as banking, insurance, tourism, and technical expertise, are invisible imports and exports. A country can have a surplus or a deficit in its (3) difference between total earnings from visible exports and total expenditure on visible imports, and in its (4) difference between total earnings from all exports and total expenditure on all imports. Most countries have to pay their deficits with foreign currencies from their reserves, although of course the USA can usually pay in dollars, the unofficial world trading currency. Countries without currency reserves can attempt to do international trade by way of (5) direct exchanges of goods without the use of money. The (imaginary) situation in which a country is completely self-sufficient and has no foreign trade is called autarky.

The General Agreement on Tariffs and Trade (GATT), concluded in 1994, aimed to maximize international trade and to minimize (6) the favouring of domestic industries. GATT was based on the comparative cost principle, which is that all nations will raise their income if they specialize in producing the commodities in which they have the highest relative productivity. Countries may have an absolute or a comparative advantage in producing particular goods or services, because of (7) inputs (raw materials, cheap or skilled labour, capital, etc.), (8) weather conditions, (9) specialization of work into different jobs, (10) savings in unit costs arising from large-scale production, and so forth. Yet most governments still pursue protectionist policies, establishing trade barriers such as (11) taxes charged on imports, (12) restrictions on the quantity of imports, administrative difficulties, and so on.

4.3 Complete this text about free trade by completing sentences 1-6 with a-f below.

1. Free trade exists when goods can be traded easily between countries ...

2. Protectionism is where countries try to protect home producers ...

3. One way they do this is by using tariffs ...

4. Another way is by using quotas which limit ...

5. Domestic manufacturers often complain that foreign competitors ...

6. Exporters, on the other hand, often complain about...

a     ... which are a kind of tax on imported goods.

b     ... complicated bureaucracy and complex customs regulations.

с     ... without restrictions.

d     ... the number or quantity of goods that can be imported.

e     ... from foreign competition and cheap imports.

f      ... try to destroy them by dumping their goods at very low prices.

4.4    The World Trade Organization (WTO), established on January 1, 1995, is the only global international organization dealing with the rules of trade between nations. It was created by the Uruguay Round of negotiations over a 14-year period and has 144 member countries (as of January 2002). At the heart of the WTO are the various agreements, negotiated and signed by the bulk of the world's trading nations and

ratified in their parliaments.
These agreements cover a range of topics:

-Reductions in tariffs;

-Fairer competition in agricultural trade;

-Textiles trade;

-Trade in services;

- Protection and enforcement of intellectual property;

- Issues related to anti-dumping, export subsidies, and safeguards;
- Other non-tariff barriers.

The goal of the WTO is to help producers of goods and services, exporters, and importers conduct their business. The agreements have three main objectives:
- To help trade flow as freely as possible,

- To achieve further liberalization gradually through negotiation, and
- To set up an impartial means of settling disputes.

Fill in the blanks using terms given below.

Russia's WTO Accession:

What are the macroeconomic, sector, labor market and household effects?

Accession to the WTO is likely to generate substantial benefits for Russia - about 7% of the value of (1)..... in the medium term and considerably more in the long term. These benefits would come from increased (2) ..... by (3)..... service providers, due to (4)..... to (5)..... the services sectors to foreign investors; from increased (6)..... due to an inflow of imported technology as the result of a reduction in Russian (7) ..... ; and from the improved treatment of Russian exporters in (8)..... cases. The main export sectors are likely to experience the greatest (9)..... .Sectors that export little and that have relatively high (10)..... are likely to (11).....in the medium term. In the long term, an improvement in the (12)..... should expand the capital stock and incomes.

The vast majority of (13)..... will gain from WTO accession. Government (14)..... are crucial in helping with the short-run (15).... impact from the accession, especially for the poorest members of society. Despite gains in the medium to long term, during a (16) ..... period it is possible that many individuals will lose. There will be (17).... workers who have been (18)..... and will need to find new employment. These workers will suffer losses from transitional unemployment and are likely to (19)..... expenses related to (20)..... or (21).... .Thus, despite the likely substantial improvement in the (22) ..... for almost all Russians after accession to the WTO and after adjustment to the new equilibrium, the transition will require a strong role for (23)..... .

WTO accession is an important step toward an open economy model of development. These results are consistent with international experience of the past 20—30 years that shows that rapid and (24)..... economic growth has occurred only in countries that progressively liberalized import protection, and who provided (25)..... to exporters that (26)...the tax that import protection imposes on exports.

Terms:

sustained, offset, safety nets, relocation, adverse, public policy, transition, return on investment, consumption, unskilled, tariff barriers, living standards, FDI, incur, households, contract, multinational, commitments, liberalize, productivity, antidumping, expansion, import protection, displaced, retraining, incentives

Text 2

Measures of trade

Balance of trade and balance of payments are two of the statistics most widely used to measure a country’s international trade position. Balance of trade is the difference between a nation’s exports and imports of both goods and services. A favourable balance of trade, or trade surplus, occurs when exports exceed imports. A negative balance, or trade deficit, occurs when the imports surpass exports. The balance of trade alone does not give the whole picture. The detailed record of all economic transactions between a country and the rest of the world is called the balance of payments. This includes trade in 1) goods and services and 2) financial and non-financial assets. The BoP is separated into two main accounts:

- current account records export/import of goods and services and interest payments;

- capital account records purchase or sale of assets or investments, like companies, stocks, bonds, bank accounts, real estate and factories.

A transaction that involves money flowing into the country is recorded as a balance of payment credit and anything that draws money out of the country is a balance of payment debit.

Invoices are one of the main documents used in trading. They are not only requests for payment but also records of transactions which give the buyer and seller information about what has been bought or sold, the terms of the sale, and details of the transaction. An invoice may be accompanied by a short covering letter or email offering additional information the customer might need.

Please find enclosed our Invoice No.B1951 for £329.43. The plugs you ordered have already been despatched to you, c/f, and you should receive them within the next few days.

—The enclosed invoice (No. D1167) for £723.60 is for 2 'Layeazee' chairs at £540.00 each less 33% trade discount. We look forward to receiving your remittance and will then send the chairs C/F.

—Our Invoice, No. TR335116 for €6,780.00 net is attached. We look forward to receiving your cheque, from which you may deduct 3% cash discount if payment is made within seven days.

A pro forma invoice is one with the words pro forma typed or stamped on it, and is used:

—If the customer has to pre-pay (i.e. pay for goods before receiving them), they pay against the pro forma;

—If the customer wants to make sure a quotation will not be changed, the pro-forma will say exactly what and how they will be charged;

—If goods are sent on approval, on sale or return, or on consignment to an agent who will sell them on behalf of the principal;

—As a customs document.

Rather than requiring immediate payment of invoices, suppliers may offer credit in the form of open account facilities for an agreed period of time, usually a month but sometimes a quarter (three months). At the end of the period a statement of account is sent to the customer, giving details of all the transactions between the buyer and seller for that period. The statement includes the balance on the account, which is brought forward from the previous period and listed as ACCOUNT RENDERED.

Statements of account rarely have letters with them unless there is a particular point that the supplier wants to make, e.g. that the account is overdue, or that some special concession is available for prompt payment, but a compliments slip may be attached.

Note the expression as at (e.g. as at 31 March), which means up to this date.

—I enclose your statement as at 31 July. May I remind you that your June statement is still outstanding, and ask you to settle as soon as possible?

4.5 Match the following definitions with terms given below and make sentences with each term.

1. With this term of settlement the exporter insists on receiving payment before shipping or dispatching the goods.

2. An order drawn and signed by the exporter (the drawer) addressed to the importer or the bank (the drawee) to pay the exporter (the payee) a certain sum on a specific day.

3. Any plant, machinery; equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernization, technological upgrading or expansion.

4. Items, which participate in or are required for a manufacturing process, but do not necessarily form part of the end-product. Items, which are substantially or totally consumed during a manufacturing process.

5. Goods, which can directly satisfy human needs without further processing.

6. To make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, re-packing, polishing, labeling.

7. This term relates to the form of settlement whereby companies simply invoice their customers and expect to receive payment in due course, usually 30, 60 or 90 days after invoice date.

8. An individual, firm, society, company, or corporation.

9. Basic materials which are needed for the manufacture of goods, but which are still in a natural, unrefined or unmanufactured state.

10. A part or a sub-assembly or assembly for substitution, that is ready to replace an identical or similar part or sub-assembly or assembly. It includes a component or an accessory.

Terms: capital goods, person, bill of exchange, consumables, open account trading, spare part, consumer goods, manufacture, raw material, advance payment

4.6 Work in groups of three or four. Read about the three trading problems below and the possible ways of dealing with them. Discuss how you would react in each case, if you were your country's Minister for Trade and Industry.

1  An exporter of perfumes in your country is complaining that the authorities in Westland have refused to allow imports of its perfumes because they do not satisfy their safety and packaging regulations. The exporter says that exactly the same products are exported to other countries without similar problems. Your country imports $ 100m worth of high-tech products from Westland each year.

a Westland has the right to change or enforce its packaging regulations.   

Tell the perfume manufacturer that it should make any necessary changes.

b Speak unofficially to the trade minister for Westland. Ask them to make a special case for your perfumes.

с Make life difficult for exporters from Westland through similar action, such as setting unrealistic health or packaging regulations.

d Go directly to the WTO and accuse Westland of protectionism.

2 A domestic manufacturer of kitchen appliances and microwave cookers is complaining because cheap imports from Southland are killing their business. Supermarkets are selling imported microwave ovens for just $25; it costs the domestic manufacturer $40 simply to make them. The domestic company employs more than 6,000 workers. According to reports, the same microwaves sell for $30 in Southland where salaries are much lower.

a Accept it. This is what the free market is all about. Consumers will benefit from lower prices for kitchen appliances. The factory must make its own decisions about its products and its market position.
b   Accuse Southland of trying to kill domestic producers by dumping its products. Ask Southland to agree to limit its exports of these appliances.
c Encourage supermarkets and distributors to buy products from domestic producers.

d  Set tariffs and quotas to raise the price of imports and protect the domestic manufacturer.

3 One of your country's specialties is Globdi, a delicious dish made from raw fish and unpasteurized milk. This is exported in tins and is popular with men and women from your country who live in other countries around the world. However, after some serious cases of food poisoning, countries in your trading group insist that your country should comply with the food agreement you have signed. This sets out regulations for health and hygiene in the production of food and drink products. They say they will not accept imports of Globdi until these conditions are met.

a Make sure that Globdi is made under the new regulations.
b  Tell the other countries that Globdi is a traditional dish and part of your national heritage and that the food poisoning cases were rare and isolated.
с  Point to examples of dangerous foods from your trading partners' countries

4.7 Choose the best word to complete each of these sentences.

1) In the 1980s, Mexico ended its policy of…….and opened up its economy to foreign investors.

a) open borders b) deregulation c) dumping d) protectionism

2) When exporting goods, it is essential to arrange………in case the goods are lost or damaged in transit.

a) a letter of credit b) insurance cover c) shipping documents
d) a customs declaration

3) If a company has invested a lot of money in developing a product, it will take out a(n)…..to protect its right to profit from the sales of that product.

a) patent b) blueprint c) prototype d) order

4) Transport companies have to comply with strict………when carrying dangerous materials.

a) quotas b) restrictions c) regulations d) barriers

5) One way that some countries protect their domestic industries is by imposing………..on all imports.

a) tariffs b) customs c) payments d) subsidies

6) If you have a bank account, the bank sends you a monthly………

to inform you what has been debited from and credited to your account.

a) sum b) balance c) bill d) statement

Unit 5 Contracts

Text 1

There is one variety of business documents that makes the parties to it legally responsible for something or likely to be legally punished or forced to do something by law. These documents are legally binding. In this connection two terms should be taken into account — contract and agreement. Legally, they mean the same thing. We can therefore begin with a most general definition of the underlying concept:

contract -a formal written agreement between two or more parties; an agreement to deliver a type of goods or material at a particular price and time in the future
договор, контракт -юридически закрепленное соглашение между двумя и более сторонами; соглашение о поставке определенной партии товаров или материалов по определенной цене к определенному времени

draw up/enter into/sign/witness a contract; under the contract; bilateral contract; binding contract; formal/implied contract; rolling contract; service contract; turnkey contract; contract of employment/employment contract

Both parties agreed to the contract. The contract was signed on January 23, 1992.

Legal English presents a more specialized definition of the term
in question. A contract is an enforceable agreement that can be written, oral, or implied by the actions or intentions of the parties. Enforceable is derived from the verb enforce — to make people obey a rule or law.

What makes a contract valid (legally acceptable, often for a fixed
period of time)? It is necessary to prove that a) the parties entering a
contract were of sound mind (were not insane) and had the required
legal capacity and mental ability, and b) there was mutual acceptance
of the agreed-upon terms. Also essential in an enforceable contract is
consideration — something of value given or promised by one party in
exchange for an act or promise of another. To add to this, the subject
matter of the contract should be legal (allowed, ordered, or approved
by law).

As stated above, contracts can be written, oral, or implied. The problem with oral contracts is that the same words discussed and agreed upon
by both parties often have different interpretations. To avoid problems,
one should insist on a written document that clarifies and confirms the
terms of any contract that has been agreed upon. Contracts are enforceable agreements. Experts in the field advise
that one should always review any contract or business document thoroughly before signing, question all ambiguous and confusing language, check the understanding of all terms. One should never be pressured into signing a contract without first reading it carefully.

Once a contract is made, it cannot generally be changed without the consent of all parties involved. The parties to the contract should
avoid unilateral modifications. All changes must be in writing and
signed by both parties.

Breach of contract (нарушение договора) is the unjustified failure
of a party to perform a duty or obligation specified in a contract. Depending on the reason for a failure, actions are taken.  Business people also talk to lawyers and, generally, seek legal help. When a contract is deemed to be breached, damages are awarded to the innocent party as compensation for financial loss or injury. In order to recover damages, it is necessary to prove that a contract existed, that there was a breach, and that a party was injured or damaged as a result.

A standard definition reads as follows: contract is an agreement, enforceable by law, between two or more competent parties (legal entities) to perform or not to perform a specific act.  An offer released by a party becomes a contract, when accepted by the other party. Acceptance may be either in writing or by performance, unless the purchase order requires acceptance thereof to be in writing, in which case it must be thus accepted. Contracts financed with public funds are generally made in writing.

In foreign trade transactions a contract is drawn up to give legal expression to the intentions of the partners and to guarantee that the obligations contained in the contract will be fulfilled.

In the course of a year, hundreds of thousands of contracts are concluded internationally. Traders are expected to use one or other of the
standard sets of contract conditions that have been put together and tested for that purpose. The British Importers Confederation has issued a list of the most important items (i.e. clauses) to be included in any contract:

Description (a clear description)

Price (agreed upon in advance)

Specifications (comply with UK regulations, particularly those relating to standards, health, safety, agriculture and defence)

Payment (method of payment and also the due date)

Packing (must conform to international standards and comply with customs regulations)

Transportation (transport available from the point of supply)

Delivery(one consignment, or instalments over a set period, the date(s) and quantity must be stipulated)
Insurance (decide in advance whose responsibility it is)
Law (the law of the country under which it will be enforced)

The number of clauses in a contract is known to vary depending on different factors — country and culture, industry and content, etc. The names for the clauses are subject to variation as well. Contracts are created in both English and Russian, and the originals have equal
value as legally binding documents.

Sometimes a longer list of clauses can be used:

1. Subject of the Contract                       Предмет контракта

2. Prices and Total Value of the Contract

                                                        Цены и общая сумма контракта

3. Time of Delivery                                      Срок поставки

4. Terms of Payment                                     Условия оплаты

5. Technical Documentation               Техническая документация

6. Guarantee of the Quality of the Equipment
                                                         Гарантия качества оборудования

7. Packing                                                              Упаковка

8. Marking                                                            Маркировка

9. Shipping Instructions and Notifications
                                            Инструкции и уведомление об отгрузке

10. Insurance                                                          Страхование

11. Sanctions                                                                 Санкции

12. Force Majeure                                                  Форс-мажор

13. Arbitration                                                            Арбитраж

14. Other Terms                                                 Другие условия

15. Legal Addresses of the Parties Юридические адреса сторон

Contracts favour formal style. Such formal words are typically used in the language of contracts:

hereafter:  after this; following this; from now on; in the future

herein:      in or into this place; in this matter

hereinafter:     below (in this document, speech, etc.)
thereafter:       after that in time or sequence; subsequently
therein:             in that place; in that respect

thereinafter: in the following part (of that document, speech, etc.)

Latin expressions are also used in binding business documents:

per annum: annually

per se:        by or in itself

pro rata:     in proportion to a total sum

addendum: a supplement

ad interim:  for the intervening time, temporarily

According to the purpose and content contracts can cover: goods, services, licenses, patents, technology and know-how. For example:

CONTRACT No...

January 15, 19...

London

"Machexport Ltd.", Moscow, hereinafter referred to as the Seller, and British Asbestos Ltd., hereinafter referred to as the Buyer, hereby agree as follows:

The Seller has sold and the Buyer has bought asbestos of Russian origin on FOB terms from one of the Baltic ports at the Seller's option. The grades, price and quantity are stated below:

The price of the goods is understood to be per metric ton, packing included, FOB one of the Russian ports. The quantity is understood to be up to 5% more or less, at the Seller's option.

2. Within 5 days after the receipt of the Seller's notification by cable that the goods are ready for shipment the Buyer shall open by cable with the Bank for Foreign Trade, Moscow, an irrevocable, confirmed and divisible Letter of Credit in favour of the Seller for the full value of the goods. The Letter of Credit is to be valid for 90 days, with the right of extension if required by the Seller. The payment for the goods is to be made in US dollars for 100% of the  invoice value of Asbestos on presentation to the Bank for Foreign Trade, Moscow, of the following documents: Invoice in 3 copies, Seller's Certificate of Weight, Set of Bills of Lading.

In the event of devaluation of the US dollar on or before the date of payment under the present Contract both parties have the right to renegotiate the price of the goods.

SELLER                                                                                  BUYER

Vocabulary:

5.1 Translate from Russian into English.

1) Продавец и Покупатель заключили настоящий Контракт о нижеследующем...

2) Продавец продал и Покупатель купил...

3) Сорта товара, цена и количество указаны ниже.

4) Срок поставки: двумя-тремя партиями в течение вто­рого и третьего кварталов 20... г., начиная со второй поло­вины мая.

5) Цена товара понимается за англотонну (long ton), вклю­чая упаковку; поставка на условиях фоб из одного из россий­ских портов по выбору Продавца.

6) Оплата полной стоимости товара производится в долла­рах США.

7) В случае девальвации доллара США обе стороны имеют
право повторно обсудить цену на товар.

8) Безотзывный и подтвержденный аккредитив открывается
на полную стоимость товара.

9) Аккредитив открывается в течение 5 дней после получе­ния Покупателем телеграфного уведомления Продавца о го­товности товара к отгрузке.

10) Аккредитив действителен в течение 90 дней, с правом
продления по требованию Продавца.

5.2  Translate the Contract into Russian.

CONTRACT No 5/32

London

March 20, 2007

"Machexport Ltd.", Moscow, Russian Federation, hereinafter referred to as the "Buyer", on the оne side, and Brown & Co, hereinafter referred to as the "Seller", on the other side, have concluded the present Contract on the following:

CLAUSE 1. Subject

The Seller has sold and the Buyer has bought on f.o.b. terms 20 Pumps of model MP-3.

CLAUSE 2. Price and Total Amount of the Contract

The price is ... per unit and the total amount of the Contract is.... The price is understood to be f.o.b. London including seaworthy packing, marking, loading on board the ship and stowing. The price is firm and not subject to any alterations.

CLAUSE 3. Delivery Dates

The equipment indicated in Clause 1 of the present Contract is to be delivered on the following dates:...

By the specified dates the equipment is to be manufactured in accordance with the Contract conditions, tested, packed, marked and delivered to the port of London. The Seller may deliver the equipment prior to the stipulatеd dates only if there is a written consent of the Buyer. The date of the clean on board Bill of Lading issued in the name of the Buyer is considered to be the date of delivery. 

CLAUSE 4. Terms of Payment              

Payment is to be made for collection in US dollars. The following documents are to be presented to the Bank:

1 Invoice,

2 Clean on board Bill of lading,

3 Test Certificate,

4 Insurance Policy,

5 Packing List,

6 Export License.

5.3  Using the text of  8.2  give the English for:

маркировка; предмет контракта; оговаривать; чистый бор­товой коносамент; упаковочный лист; платеж в форме инкас­со; страховой полис; акт испытаний; изменениям не подлежит; погрузка и штивка; дата коносамента считается датой постав­ки; выписанный на имя; пригодный для морской перевозки; статья (раздел); письменное согласие Покупателя; экспортная лицензия; общая стоимость Контракта.

5.4 Translate from English into Russian.

General Conditions and Terms of Delivery and Payment

1. The goods are considered delivered by the Seller and accepted by the Buyer:

in respect of quality — as per the quality stipulated in the Quality Certificate issued by the manufacturer;

in respect of quantity — as per the quantity of packages and the weight indicated in the Bill of Lading.

2. The date of the Bill of Lading is considered as the date of delivery.

3. The Seller undertakes to insure the goods to the full value of the invoice against all risks. The terms of the transport insurance can be extended only at the Buyer's request and for his account.

4. The Seller should advise the Buyer of the shipments effected by cable or airmail.

5. Payment for the delivered goods is to be effected by an Irrevocable Confirmed Letter of Credit opened by the Buyer in the Seller's favour with a bank correspondent to Vnesheconombank.

The Letter of Credit is to be opened within 10 days upon receipt of the Seller's notification of the readiness of the goods for shipment, to be valid for 90 days and to cover full value of the goods ready for shipment.

The Letter of Credit should fully conform to the terms of the present Contract and stipulate partial shipments.

Payment against the Letter of Credit should be made against the following documents submitted by the Seller to Vnesheconombank of the Russian Federation:

a) Invoice in triplicate;

b) Full set of Bills of Lading;

c) Specification in triplicate.

All expenses connected with the opening and eventual prolongation of the Letter of Credit as well as all banking charges relevant to the opening and use of the Letter of Credit are to be borne by the Buyer.

In case of delay in the opening of the Letter of Credit the Seller has the right to refrain from shipment or cancel the Contract.

Vocabulary:

5.5 Translate from Russian into English.

1) Дата коносамента считается датой отгрузки.

2) Условия страхования могут быть расширены по требованию Покупателя и за его счет.

3) Продавец осуществляет страхование товара на полную стоимость и на все случаи.

4) Аккредитив открывается в течение 10 дней после получения уведомления Продавца о готовности товара к отгрузке.

5) Платеж за поставленный товар осуществляется по безот­зывному подтвержденному аккредитиву.

6) Продавец извещает Покупателя о произведенной отгруз­ке телеграммой.

7) Аккредитив должен полностью соответствовать услови­ям настоящего Контракта и предусматривать отгрузку товара партиями.

8) В случае задержки открытия аккредитива Продавец име­ет право воздержаться от отгрузки товара или расторгнуть Контракт.

9) Все расходы, связанные с открытием и возможным про­длением аккредитива, а также использованием аккредитива, относятся на счет Покупателя.

5.6  In part В find equivalent Russian expressions for the English expressions given in part A:

A.   in respect of quality; indicated in the Bill of Lading; for the
Buyer's account; the Seller should advise the Buyer by cable;
shipments effected; the Seller's notification of the readiness of the
goods for shipment; to cover full value of the goods; to conform to
the terms of the present Contract; to stipulate partial shipments;
payment should be made against the following documents; eventual
prolongation of the Letter of Credit; banking charges relevant to the
opening of the Letter of Credit.

B. соответствовать условиям настоящего Контракта; произведенная отгрузка товаров; платеж осуществляется по предъявлении следующих документов; в отношении качества; предусматривать отгрузку товара партиями; уведомление о готовности товара к отгрузке; Продавец извещает Покупателя телеграммой; указанный в коносаменте; покрывать полную стоимость товара; возможное продление аккредитива; за счет Покупателя; банковские расходы, связанные с открытием аккредитива.

5.7  Using the information given below make up a text of a contract in English:

Место подписания контракта — Нью-Йорк.

Дата: 23 января 2009 г.

Покупатель: торговая фирма «Весна».

Продавец: фирма «Хатсон энд Ко».

Товар: мужские костюмы модели А-480/м.

Количество: 1000 штук.

Цена: 82 доллара США за единицу товара.

Срок поставки: первый и второй кварталы 2009 г.

Условия поставки: поставка осуществляется тремя партия­ми: первая партия в 200 штук — в первом квартале 2009 г., вторая и третья партии, по 400 штук каждая, — во втором квартале 2009 г.

Платеж: платеж в долларах США, форма платежа — по безотзывному подтвержденному аккредитиву. Срок открытия аккредитива — 10 дней после получения уведомления о готов­ности товара к отгрузке. Платеж производится по предъявлении продавцом сле­дующих отгрузочных документов: счет-фактура в трех экземп­лярах, коносамент, упаковочный лист, заводской сертификат качества.

Поставка: на условиях сиф Санкт-Петербург.

5.8 Translate the following using a dictionary, if necessary:

1) The quality of the goods sold under the present Contract shall be in full conformity either with the State standards existing in Russia or with the technical conditions ruling at the manufacturing works.

2) The goods shall be secured and properly packed to withstand both overseas and overland transport as well as transhipment. Each package shall be provided with marking showing the place of destination, name of Consignee, description of goods, contract number, case number, gross and net weight.

3) Should the Buyer fail to open the Letter of Credit in time, he is to pay the Seller a fine for each day of the delay, but not more than for 20 days, at the rate of 0.1 percent of the amount of the Letter of Credit and in that case the Seller shall have the right to not to load the tanker until the Letter of Credit has been opened. Should the delay in the opening of the Letter of Credit exceed 20 days, the Seller shall have the right to refuse to deliver the goods which were to be paid for out of this Letter of Credit.

4) The Seller is to inform the Buyer by cable or telex not later than 5 days before the starting of loading of the name and capacity of the tanker, the date and port of shipment of the goods. Furthermore, the Captain is to advise the Buyer or his agent by cable of the forthcoming arrival of the tanker at the port of discharge 4 days before her arrival. The Seller has the right to substitute one tanker for another informing the Buyer thereof by cable or fax.

5) In case of non-conformity of the quality of the goods actually
delivered by the Seller with the Contract specification, any claim
concerning the quality of the goods may be presented within two
months of the date of delivery. No claim shall be considered by the
Seller after expiration of the above period. No claim presented for
one lot of the goods shall be regarded by the Buyer as a reason for
rejecting any other lot of the goods to be delivered under the
present Contract.

5.9  Study the text of the Contract in English and in Russian

5.10  Read the text of the Contract in  8.9 and give the English for:

стороны заключили настоящий Контракт о нижеследую­щем; являться неотъемлемой частью настоящего Контракта; датой поставки считается дата бортового коносамента; конвенциональный штраф; штраф в размере; погрузочно-разгрузочные работы; завод-изготовитель; технические нормы; гарантийное письмо Продавца; нейтральная компетентная организация; документы, подтверждающие претензию; возмеще­ние недостающего количества; замена некачественных товаров бесплатно; возмещение стоимости товаров; обстоятельства не­преодолимой силы; урегулировать спор дружественным путем; споры или разногласия, вытекающие из настоящего Контракта или связанные с ним; подлежать рассмотрению и окончатель­ному решению; третье лицо; передавать права и обязанности по Контракту; банковские расходы; полномочные представи­тели сторон; терять силу (быть недействительным); юридиче­ский адрес.

5.11 Translate the sentences into English.

1) В случае задержки поставки товара Продавец выплачивает конвенциональный штраф, если при этом исключены нарушения других прав Покупателя, связанные с задержкой поставки.

2) В случае обнаружения недовеса в поставленных товарах
или несоответствия качества товаров техническим условиям Контракта Покупатель имеет право предъявить претензию Продавцу.

3) Если претензия окажется обоснованной, Продавец компенсирует недопоставленные либо некачественные товары.

4) При возникновении обстоятельств, которые мешают  выполнению обязательств по Контракту одной из сторон, выполнения обязательств переносится на соответствующее время.

5) Если сторона не сообщит или несвоевременно сообщит об обстоятельствах форс-мажор, это лишает ее права ссылаться на них.

6) В случае возникновения споров или разногласий, вытекающих из настоящего Контракта или связанных с ним, стороны примут все меры к урегулированию такого спора или разногласия дружественным путем.

5.12 Vocabulary for contracts. 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       clause           section    condition           provide for

binding     compromise      party       breach agreement 

litigation   arbitration    term         out of court       comply with

a) A contract is an .............. drawn up between two .... .

It is divided into .........., ......... and ............. .

b) 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.

c) 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 .............. .

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

5.13  Licensing terms.You have asked a US firm if you could make one of its products under licence, in your own country. Here is part of their answer. But what do the legal terms really mean? Replace the underlined terms with the phrases listed below.

We've checked with our legal department. Yes, we are the patent holders for the XT7. We are prepared, in fact, to grant you a licence to make it in your own territory on these conditions: there would be a fee on agreement and then a royalty of 5% with a minimum annual royalty of $50,000. The term would be four years, with the possibility of renewal on expiry. And, of course, in the event of any infringement, as our licensee you would have to apply for an injunction on the infringer's production.

let you have                               yearly bottom limit

official manufacturer                 have the legal rights over

further years                                    period

ask for a ban                                    when it ended

an immediate payment               5% to pay

illegal copying                                 copier's

country                                             permission

5.14 Choose the correct alternative to complete these sentences.

1. We will agree to sign the new contract (provided that / unless) you
increase our salaries by 5%.

2. We will sign the deal tomorrow (unless / as long as) something goes wrong.

3. (Provided that / Unless) we hear from you by 5 pm tomorrow, we will
assume that the deal is off.

4. I won't accept the overseas posting (unless / so long as) I can have my job back when I return.

5. We should be able to avoid a strike tomorrow (unless / provided that) we agree to all the union's demands.

6. (Unless / So long as) we continue to order over 500 cases, they will
continue giving us free delivery.

7. (Provided that / Unless) we discuss the matter now, the problem is going to get worse.

8. We will be able to commence work (as long as / unless) the deposit is paid.

9. We will sign this contract tomorrow (unless / provided that) there are no further problems.

10. John was prepared to come to the meeting (unless / provided that) he
could bring his union representative.

5.15  The verbs 1-6 all collocate with a contract. Match each verb with its closest synonyms a-f.

1 sign         a  discuss and finalize, draw up

2 negotiate b  produce a first version of

3 break                   c  enter into, accept

4 cancel      d  give

5 draft                    e  end

6 award      f  be in breach of, renege on, violate the terms of

5.16 Match each legal word (typical of a contract) 1-10 with its meaning a-j.

1 irrevocable                        a  settle the bill

2 give notice                        b  impossible to change

3 hereby                               c  promise

4 undertake                          d  in this document

5 make payment                 е inform

6 deemed                             f  no longer effective

7 on or before                                  g  for whatever reason

8 hereinafter                        h  considered as

9 lapsed                               i later in this document

10 regardless of the cause thereof j not later than

Use words from the left-hand column in exercise 8.16 in the correct form to complete the sentences.

1 The seller .......to provide maintenance and repair for a period of one year.

2 The buyer shall be required to........to the seller of any request for repair.

3 The buyer shall ..........of the annual fee.

4 Signature of the contract shall constitute.........acceptance of the terms and conditions.

5 Warranties not renewed ..............1 April shall be deemed .......... .

5.17 Complete each sentence with a pair of items from the box.

goes to court / damages                 legally binding / enforced

parties / out-of-court settlement                 penalty clause / applies

sued / breach of contract

1 A........... contract is one which can be.............. by the legal system.

2 Many contracts include a ..............which........... if deadlines are not met.

3 A company which fails to respect its commitments can be.........for ........ 

4  In some cases the two.........can avoid the expense of  litigation by agreeing to an......... .

5 If the case........ , the loser may be ordered to pay millions in .......

5.18 Read the extract from the contract, and find expressions which mean

1. accepted                             6. pay the bill

2. in this document                7. considered as

3. promises                             8. for whatever reason

4. not later than                      9. inform

5. later in this document        10. impossible to change

this agreement, made and entered into this fourth day of June by and between Calisto Instruments, the Seller, and JZ Music Ltd, the Buyer:

1. The seller hereby undertakes to transfer and deliver to the buyer on or before 1 November, the goods as specified hereinafter.

2. The buyer hereby undertakes to accept the goods and pay for them in accordance with the terms of the contract.

3. The buyer shall make payment within 30 days of reception of the goods.

4. Goods shall be deemed received by the buyer when received by him at the port of Southampton.

5. The risk of loss from any damage to the goods regardless of the cause thereof shall be on the seller until the goods have been accepted by the buyer.

6. The buyer shall have the right to examine the goods on arrival, and he must give notice to the seller of any claim for damages within seven business days after such delivery. The failure of the buyer to comply with these rules shall constitute irrevocable acceptance of the goods.

5.19 Use the expressions from 8.18 to complete this second extract from the contract.

9. The seller (1)      __(2)__      to provide maintenance and repair for one calendar year. The buyer shall be required to (3)___ to the seller of any request for repair. On expiry of the warranty, an extension agreement

may be (4)___: the buyer shall (5) __of the annual fee before any repair work can be undertaken, (6)___. Signature of the warranty extension shall constitute (7)___acceptance of the terms and conditions (8)____ specified. Warranties not renewed (9)___1 April shall be (10)___ lapsed.