WHAT IS A CONTRACT?
1. UNIT 12. Текст «WHAT IS A CONTRACT?», стр. 199-201 читать, переводить, выписать незнакомые слова.
2. Выполнить упр-я .
Учебник: Агабекян И.П.
А23 Английский язык для менеджеров/ И.П. Агабекян, —- Mосква: «Проспект», 2019 — 352 с (Высшее образование).
TEXT 1. WHAT IS A CONTRACT?
Contracts are the foundation on which business is conducted. A contract exists when two or more parties agree to exchange either property (including money) or promises of future performance. Contract is an agreement that creates a binding obligation. In general, contracts may be either oral or written. Certain classes of contracts must be written and signed. These are contracts involving the sale and transfer of real estate, and contracts to guarantee or answer for the miscarriage, debt, or default of another person. Contracts can be part of an invoice or a purchase order, or they can be drafted as separate documents. Properly drafted contracts can help avoid unnecessary and costly disputes. A contract usually forms the basis of a transaction between the Buyers and the Sellers.
Some of the items are necessary in any contract: legal title of the contracting parties, subject of the contract, quality, price, delivery, and payment terms. As a rule a contract contains a number of clauses, such as:
1. Subject of the Contract.
2. Price, total value, and currency of the contract.
3. Terms of Payment.
4. Delivery.
5. Inspection and Test.
6. Guarantee.
7. Arbitration.
8. Insurance and other conditions.
SUBJECT OF THE CONTRACT
This section names the product for sale or purchase. It also indicates the unit of measure generally employed in foreign trade for specific commodities. Contracts for bulk cargo contain a stipulation “about” or “plus or minus... per cent”, denoting the permitted quantity tolerance.
PRICE, TOTAL VALUE, AND CURRENCY OF THE CONTRACT
The price stated in a contract may be firm, fixed or sliding.
Firm price. Firm prices are not subject to change in the course of the fulfillment of the contract.
Fixed price. It is the price governing in the market on the day of delivery or for a given period.
Sliding prices. These prices are quoted for machinery and equipment, which require a long period of delivery.
Quality. Warranty. The quality of machines and equipment is to be in conformity with the technical specification of the contract. The quality of raw materials and foodstuffs is determined, as a rule, by standards, by sample or by description.
In case of a breach of contract the injured party may go to court to sue for money damages, or for the contract to be rescinded, for injunction, or for specific performance if money damages would not compensate for the breach. Specific performance of a contract is the right by one contracting party to have the other contracting party perform the contract according to the precise terms agreed therein.
Assignment. Answer the questions:
1. What are the essential clauses of a contract?
2. What contracts must be in written and signed?
3. What sort of prices may be indicated in a contract?
4. What items are necessary in any contract?
5. How is quality determined in the contract?
6. What can the injured party do in case of a breach of contract?