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C. Answer the questions.

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  6. B. Find the answers to the following questions in the passage given bellow. Put the passage in the correct order to form the text (use questions as the prompt)
  7. B. Predict the answers to the questions before reading
  8. B. Read the text and find the answers to the following questions.
  9. B. Read the text below and find answers to the following questions.

1) Why are standard contracts widely used?

2) What are the essential items of a contract?

3) What information is contained in different sections of a contract?

4) What sort of prices may be indicated in a contract?

5) What is a check?

6) Whom do you give TT terms to?

7) What are the two types of drafts?

8) What is an irrevocable L/C?

9) Who guarantees payment against a confirmed letter of credit?

10) Does a term draft involve risk for an exporter?

D. 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 condition provide for litigation clause binding arbitration out of court section compromise breach term agreement party comply with/abide by  

1) A contract is an … drawn up between two … It is divided into …, …, and …

2) The contract … … any problems between two parties. The conditions of the contract are … on both parties. If one party does not want … … the clauses, this is called a … of a 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.



Reading 4: Draft Contract


The firm BINGO Ltd hereinafter known as the «SELLER», on the one hand, and MONKBERRY MOON DELIGHT plc hereinafter referred to as the «BUYER», on the other hand have concluded the present Contract on the following: The Seller undertakes to sell the Buyer and the Buyer undertakes to buy 120,000 super widgets* in accordance with specification and conditions stipulated in Annexe No. 1 to the present Contract, which is an integral part of this Contract. All freight/loading and insurance charges will be covered by the Seller. The terms of payment and immediate payment of delivery charges by confirmed and irrevocable letter of credit are to be standard. A penalty clause will be included in the contract. It will be invoked against the Seller for late delivery or substandard quality; against the Buyer for late payment. In the event of non-payment, the Seller shall be entitled to reclaim the goods. In case of dispute between the parties to the contract, the matter will be taken to independent arbitration. All the terms of the contract must be compiled with both parties.


* widget - условное название для любого вида товаров


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